Pension transfer window: PenOp boss pleads for more time

Eguarekhide Longe, President of the Pension Fund Operators Association of Nigeria (PenOp), has urged holders of Retirement Savings Account (RSA) to exercise more patient to the commencement of the most anticipated transfer of their pension account from one Pension Fund Administrator (PFA) to another PFA.

Section 13 of the Pension Reform Act, 2014 provides that, “Subject to the Guidelines issued by the Commission, a holder of a RSA maintained under this Act may not more than once a year, transfer his pension account from one PFA to another.”

Longe, who is also the Managing Director of AIICO Pension Managers Limited, disclosed this over the weekend at a two day retreat for Pension Journalists in Lagos, that before the transfer window can be leave open, there is need for the industry to change the pension software which is currently in use.

He mentioned that the current software is not safe enough to allow pension contributors move their account from one Pension Fund Administrator (PFA) to another, “rather, we need to be patient”, added he.

“Whatever that is worth doing at all is worth doing well, I will appeal to the public to still exercise more patient.

“Though the end in in sight.”

Mr. Eguarekhide Longe, however assured pension contributors that the Pension Fund Operators Association of Nigeria (PenOp) are focused on offering excellent service and keep pension funds safe.

Meanwhile, recent statistics show that pension assets have reached N5.3 trillion from over 6.5 million contributors. Many of these contributors may want to change PFAs over poor services thus the need for the transfer window to be opened for them to be able to do so.

The regulator, National Pensions Commission (PenCom) have been developing the guidelines and other infrastructure to enable it open the transfer window in the face of complaints by some contributors of poor service delivery from some of the PFAs.

Findings however gathered that the biggest challenge that have stalled the opening of the transfer window for over three years since the idea was mooted has been corrupt data occasioned by multiple registrations by some contributors and lack of accurate biometrics.

But it does appear the challenges have largely been addressed as the Pension Fund Operators Association of Nigeria (PenOp) has indicated that based on feelers from PenCom, the guidelines for the transfer window to be opened soon.

PenOp Chairman, Mr. Eguarekhide Longe, said “plus or minus, the transfer window will be open in the next 18 months”.

Similarly, the National Pension Commission (PenCom) identified that multiple RSA pins on the Commission’s database have also largely hindered the opening of the transfer of pension account from one PFA to another.

PenCom stated that for effective take off of the transfer window, the Commission is putting in place infrastructure and modalities that would enable the cleaning up of existing registration database to eliminate multiple registration thereby facilitating the opening of the transfer window.

The report reads in part: “In line with the provisions of the Act, the Commission has already released the regulations for the transfer of RSA to pension operators and also displayed same on its website.

“A major challenge hindering the opening of the transfer window is the issue of RSA holders registering more than once through their PFAs on the Commission’s database.

“For effective take off of the transfer window, the Commission is putting in place infrastructure and modalities that would enable the cleaning up of the existing registration database to eliminate multiple registrations thereby facilitating the opening of the transfer window.”

The Commission however enjoined all stakeholders to exercise patience as the window would be opened as soon as possible.