BY NKECHI NAECHE- ESEZOBOR–The National Pension Commission (PenCom),yesterday said that effective from 1st June 2025, PFAs will no longer be required to seek approval or obtain a “No Objection” from PenCom before processing and disbursing benefits such as including Programmed Withdrawal, Retiree Life Annuity, and Temporary Loss of Employment benefits, among others.
PenCom disclosed this through a statement posted on its official X account titled “PenCom Introduces Policy to Expedite Benefit Payments” that this policy is part of the ongoing efforts to enhance operational efficiency and service delivery, as outlined in the Circular on Approval of Benefits to Holders of Retirement Savings Accounts by Licensed Pension Fund Operators ,dated 12 March 2025.
The commission, however, said that PFAs must continue to submit requests for approval to the Commission regarding depleted RSAs and death benefit applications, in accordance with Section 8 (2) of the Pension Reform Act 2014.
The statement reads further “Furthermore, PFAs are mandated to process and approve eligible benefit applications within two (2) working days of receiving all required documentation, while PFCs must ensure payment of the approved benefits within 24 hours of receiving instructions from the PFAs.
Prior to this directive, PFAs were required to review, process, and forward all benefit payment applications to the Commission for approval before the appointed PFCs could credit beneficiaries’ accounts.
“This new policy is designed to streamline the benefit payment process, significantly reducing delays and improving access to entitlements for retirees and other RSA holders.
“In line with its regulatory and supervisory mandate, PenCom will continue to conduct reviews of transactions processed by PFAs to ensure compliance with applicable regulations. The Commission will apply appropriate regulatory measures where necessary to uphold transparency, accountability, and the integrity of the pension system.
“RSA holders are reminded that timely submission of the necessary documentation to their PFAs is crucial for seamless access to benefits. Prospective retirees are advised to submit all relevant documents at least six months before retirement.
“All benefit applications must be supported by the documentation prescribed in the Commission’s Regulations and Guidelines.”
