The National Pension Commission (PenCom) has officially launched its new Pension Contribution Remittance System, a platform designed to optimise the process of remitting pension contributions into employees’ Retirement Savings Accounts (RSAs).
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.
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.
In a recent statement, PenCom expressed concerns about the growing pile of uncredited pension contributions in PFAs’ accounts. The Commission called for strict compliance from employers and contributors to address this matter promptly. The inability of PFAs to credit employees’ RSAs could potentially affect their retirement plans. As a result, it is critical to act quickly to correct the situation.
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.
