BY NKECHI NAECHE–ESEZOBOR--The National Pension Commission, (PenCom) and the Pension Fund Operators Association of Nigeria (PenOp), have engaged Four PSSPs providers starting April 1, 2025, to facilitate pension remittances and ensure all platforms meet industry specifications.
The PSSPs includes PayPen by Netline Ltd; Paythru by Pethahiah by Rehoboth International Ltd; Pension Central by Chams and Cyberpay by Cyberspace Ltd.
Oguche Agudah, Chief Executive Office of PenOp disclosed this at the PenCom Journalist Workshop with the theme; ‘Tech-Driven Transformation: Shaping the Pension Landscape’, held last week in Lagos.
According to him we are working on a technology system whereby we are engaging some firms that we call the Pension Service Solution Providers to ensure that everyone who is paying pension from April 1, 2025 has to go through this model.
Explaining the process, he said “what will happen is that when the employer pays pension, it goes straight to the RSA holder. There are going to be four of them that we have engaged now. With these, there is going to be a standardised remittance template.
He added that there will also be validation checks to eliminate instances of “we got money, but don’t know where it’s coming from.”
“We are also going to do awareness between now and April 1 so that employers will know that from April 1, they can just go to the bank and send their pension. The result is that RSA holders will get their pension without delay.”
On the benefits of engaging the providers he said it brings “more transparent remittance process allows for better tracking and reporting, which can enhance trust among stakeholders, including employees, employers, and regulatory bodies.
“A well-functioning pension system contributes to economic stability by mobilising long-term savings for investment in various sectors. Timely pension remittances enhance this effect by ensuring that funds are available for investment purposes.”
On the rights of the RSA Holders regarding the new solution, he said they have rights to timely remittance of contribution by employers; to choose a PFA, retirement; earn penalties on late remittances; use RSA balance for specific purposes and understand retirement options.
He urged employers to ensure timely remittance of deducted contributions
to the Pension Fund Custodian within seven working days from the date employees are paid their salaries.
According to him failure to do so is illegal and attracts penalties, including a minimum fine of 2% on unpaid contributions for each month of default.
He noted that employers who comply with pension remittance requirements can receive Clearance Certificates from PenCom, which are essential for eligibility in government contracts and other business opportunities.
He charged employers to provide life insurance coverage for their employees, ensuring additional financial security in case of unforeseen events.
