Pension Fund Administrators (PFAs) will no longer need to seek ‘No objection’ approval from the National Pension Commission when processing and disbursing benefits.
PenCom in a statement announced that this policy will take effect on June 1, 2025, and aims to speed up benefit payments to Retirement Savings Account (RSA) holders.
However, PFAs are still required to submit requests for approval to the Commission for depleted RSAs and death benefit applications.
The Commission also stated that it will monitor the implementation of this policy through its regulatory platforms to ensure compliance.
Previously, PFAs had to review, process, and submit all benefit payment applications to the Commission for approval before the designated Pension Fund Custodians could credit the accounts of beneficiaries.
Pension administration in Nigeria has long been a subject of intense debate, reflecting the broader challenges of governance, transparency, and economic stability in the country. While reforms have been introduced over the years, pensioners still face numerous challenges, ranging from delayed payments to outright denial of benefits, corruption, cumbersome withdrawal processes, and inadequate coverage.
To address these challenges, President Bola Tinubu approved an N758 billion Federal Government of Nigeria (FGN) Bond to fully settle outstanding pension liabilities under the Contributory Pension Scheme (CPS).
