L-R: Executive Secetary PenOp, Susan Oranye; Head, Corporate Communications PenCom, Peter Aghahowa; President of PenOp and MD, Leadway Pension, Aderonke Adedeji; MD, UBA Pension Custodian, Bayo Yusuf and MD, ARM Pensions; Wale Odutola at the event.
BY NKECHI NAECHE ESEZOBOR —-There are indications that the long awaited transfer window in the Nigeria Pension industry will finally open come June 2020.
The National Pension Commission (PenCom) and Pension Fund Operators Association Of Nigeria (PenOp) disclosed this during a joint press conference to pension journalists at the 2019 media retreat held in Lagos, that the date is not tentative but with all modalities put in place by PenCom the industry is hopeful that the transfer window will open June 2020.
The President of PenOp , Aderonke Adedeji said that the commission and the association have been working tirelessly in the last few weeks to ensure that the long awaited transfer window is opened.
The PRA, 2014 provides that an employee may, not more than once in a year, transfer his or her RSA from one PFA to another without producing any reason for such transfer.
Section 13 of the PRA 2014 also provides that, “subject to guidelines issued by the commission, a holder of a retirement savings account maintained under this Act may not, more than once in a year, transfer his account from one Pension Fund Administrator to another.”
Despite this provision, PenCom is yet to authorise PFAs to allow RSA holders to transfer their RSAs from one PFA to another.
The implication is that RSA holders with underperforming PFAs in terms of return on investments are stuck with such PFAs as they cannot move their contributions to PFAs with better history of high returns on investment.
With this development, retirees and contributors under the CPS may have course to rejoice.
