The National Pension Commission (PenCom) said it will launch the Retirement Savings Account (RSA) transfer system on November 16, 2020.
A statement from the commission said it has concluded arrangements for the take-off of RSA Transfers.
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Section 13 of the Pension Reform Act (PRA), 2014 provided that RSA holders may transfer their accounts from one Pension Fund Administrator (PFA) to another once in a year.
However, this provision of the PRA, 2014 has not been implemented since the inception of the contributory pension scheme.
PenCom said prior to the proposed launch, once anybody opened an RSA with any PFA, that RSA holder would be stuck with the PFA irrespective of the quality of service, return on investments and even performance in general.
But the launch of the RSA transfer system would allow RSA holders to change PFAs if they so wish once in a year.
“The launch date for the RSA Transfer System is scheduled for Monday 16 November 2020. This will signify the official opening of the RSA Transfer Window,” PenCom disclosed.
The Commission further disclosed that prior to this proposed launch, it had developed the RSA Transfer Application, a robust electronic platform that would enable seamless RSA transfers.
The Commission also disclosed that it had conducted extensive workshops for licensed Pension Operators and State Pension Bureaus in readiness for this epoch-making event.
“The activation of the RSA transfer process will engender competition and improve service delivery in the pension industry, while asserting the right of RSA holders to determine which PFA manages their pension contributions and retirement benefits,” PenCom said.