…Mandates PFAs To Complete Processing Within Two Days, PFCs To Effect Payments In 24hrs
The National Pension Commission (PenCom) has waived bureaucratic processes, which before now, were causing delays in payment of benefits to Retirement Savings Account (RSA) holders.
It has also introduced new measures to expedite processes and payments to RSA holders.
To this effect, the Commission has directed that with effect from 1st June 2025, Pension Fund Administrators (PFAs) are no longer required to obtain from it “No Objection” before processing and disbursing benefits, including Programmed Withdrawal, Retiree Life Annuity, and Temporary Loss of Employment benefits, among others.
PenCom also mandated PFAs to ensure that processing and approval of eligible benefit applications are completed within two working days of receiving all required documentation.
Further, it directed that Pension Fund Custodians (PFCs) must ensure payment of the approved benefits within 24 hours of receiving instructions from the PFAs.
PenCom, among other directives, explained that these are significant policy initiative aimed at expediting the payment of benefits to Retirement Savings Account (RSA) holders.
According to PenCom in a statement released Thursday night, “This is part of ongoing efforts to enhance operational efficiency and service delivery, as outlined in the Circular on Approval of Benefits to Holders of Retirement Savings Accounts by Licensed Pension Fund Operators, dated 12 March 2025.”
The Commission, however, stressed its commitment to continue to monitor the implementation of this policy through its regulatory technology platforms and other supervisory mechanisms to ensure full compliance.
The statement reads in part:
“Effective from 1st June 2025, Pension Fund Administrators (PFAs) will no longer be required to seek approval or obtain a “No Objection” from PenCom before processing and disbursing benefits, including Programmed Withdrawal, Retiree Life Annuity, and Temporary Loss of Employment benefits, among others.
“However, PFAs must continue to submit requests for approval to the Commission regarding depleted RSAS and death benefit applications, in accordance with Section 8 (2) of the Pension Reform Act 2014.
“Furthermore, PFAs are mandated to process and approve eligible benefit applications within two (2) working days of receiving all required documentation, while Pension Fund Custodians (PFCs) must ensure payment of the approved benefits within 24 hours of receiving instructions from the PFAs.
“PenCom will continue to monitor the implementation of this policy through its regulatory technology platforms and other supervisory mechanisms to ensure full compliance.
“Prior to this directive, PFAs were required to review, process, and forward all benefit payment applications to the Commission for approval before the appointed PFCs could credit beneficiaries’ accounts.
“This new policy is designed to streamline the benefit payment process, significantly reducing delays and improving access to entitlements for retirees and other RSA holders.
“In line with its regulatory and supervisory mandate, PenCom will continue to conduct reviews of transactions processed by PFAs to ensure compliance with applicable regulations.
“The Commission will apply appropriate regulatory measures where necessary to uphold transparency, accountability, and the integrity of the pension system.
“RSA holders are reminded that timely submission of the necessary documentation to their PFAs is crucial for seamless access to benefits.
Prospective retirees are advised to submit all relevant documents at least six (6) months before retirement. All benefit applications must be supported by the documentation prescribed in the Commission’s Regulations and Guidelines.”
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