The National Pension Commission (PenCom) on Monday formally launched the Retirement Savings Account Transfer System (RTS) 16 years after it was conceived in the Pension Reform Act PRA.
Speaking during the official virtual launch of the RTS, the Secretary to the Government of the Federation, Boss Mustapha, said the Retirement Savings Account (RSA) transfer window was embedded in the PRA as far back as 2004 but was not implemented until now.
The transfer of RSAs is empowered by Section 13 of the Pension Reform Act 2014, which allows a pension contributor or retiree to move his or her RSA from one Pension Fund Administrator to another, provided that it is not more than once in a year.
Mustapha said the electronic platform, RTS, developed by PenCom, would facilitate the transfer of RSAs from one Pension Fund Administrator (PFA) to another once in a year.
The Director General of the National Pension Commission (PenCom), Aisha Dahir-Umar, said the activation of the RSA transfer provision is a major milestone attained by the commission in the implementation of the Contributory Pension Scheme (CPS).
Dahir-Umar said the commission has directed PFAs to increase performance disclosures to enable RSA holders to make informed decisions.
She said the commission developed and deployed the Enhanced Contributor Registration System (ECRS) in June 2019 and the ECRS has enabled the unique identification of contributors registered on the commission’s database, which is a critical requirement for smooth RSA transfers.
The PenCom boss said the transfer of RSAs from one PFA to another by RSA holders is all about enhancing individual choices.
The pioneer Director General of PenCom, Muhammed Ahmed, urged all RSA holders to ensure that their decision to move an RSA from one PFA to another is based on an objective review of the information available on the performance of the PFAs.
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