PenCom Innovates, Unveils Digital Platform For Automatic Remittances Of Pension Contributions To Employees’ RSAs

…Sets June 1, 2025 deadline for adopting new remittance process.

The National Pension Commission (PenCom) has introduced its new Pension Contribution Remittance System, an automated platform which enhances remitting pension contributions into employees’ Retirement Savings Accounts (RSAs).

Further, the Commission has set June 1 as deadline for adoption of the new remittance process.

This system, developed in collaboration with the Pension Operators’ Association of Nigeria (PenOp), has deployed approved Payment Solution Service Providers (PSSPs) to enhance accuracy, efficiency, and transparency in pension contributions.

The introduction of the Pension Contribution Remittance System is a response to the challenges frequently encountered by employers, including errors in contribution schedules and verification delays, said a statement by PenCom management.

In the past, PenCom identified a challenge of uncredited pension contributions, primarily due to incomplete documentation from employers, which resulted in Pension Fund Administrators (PFAs) being unable to credit the RSAs of affected employees.

PenCom had expressed concerns about the growing pile of uncredited pension contributions in PFAs’ accounts and called for strict compliance from employers and contributors to address this matter promptly.

It observed that the inability of PFAs to credit employees’ RSAs could potentially affect their retirement plans and consequently, it acted quickly to correct the situation.

It explained that by completely automating pension remittance processes, PenCom and PenOp have taken significant steps towards creating a more robust Contributory Pension Scheme (CPS) for employers and employees, solving the challenge of uncredited pension contributions in the accounts of PFAs.

“By this development, all employers are to channel all pension contributions through the approved PSSPs, who then validate the PFAs and Personal Identification Numbers (PINs) of the RSA holders with PenCom’s database to eliminate errors, which led to uncredited pension contributions”, the Commission stated.

It outlined that the key features of the New System include Error Prevention Mechanisms, Seamless Validation Process, Convenient Access to Payment Providers, Instant Online Payment Options, No Costs to Employers, Guide for Employers, Automatic Validation of Employee Information, Payment Initiation and Confirmation, among other features.

PenCom listed approved Payment Solution Service Providers (PSSPs) for ease of payments. These include: PAYPEN by Netline Limited, PENCENTRAL by Chamsaccess Limited, PENSPHERE (formerly PAYTHRU) by Pethahiah Rehoboth Int’l Limited, PENREMIT by Cyberspace Limited, PENSOL by Uniswitch Technology Limited, ENCO by Gemspay Solutions Limited, AWABAH by Awabah Remit Services Limited, PCOSS by Nigeria Inter-bank Settlement systems Plc and INTERSWITCH by Interswitch group.

As the Commission has set June 1, 2025 as the deadline for adopting this new remittance process, it explained that from this date onwards, employers are to channel all pension contributions through the approved PSSPs.

“PenCom remains open to approving additional PSSPs that meet specified criteria in the future. This move demonstrates PenCom’s commitment to continuously improving the CPS and ensuring accessibility for employers across Nigeria.

“As the Pension Contribution Remittance System rolls out, PenCom is optimistic that it will lead to a more transparent, efficient, and error-free process for pension contributions. Employers are encouraged to adopt these changes promptly to ensure compliance and preserve the integrity of their employees’ pension contributions”, it stressed.