PenCom grants PFAs autonomy to approve retirement benefits, mandates two-day processing

This policy change, which takes effect on June 1, 2025, is aimed at streamlining pension payments and reducing bureaucratic delays in Nigeria’s Contributory Pension Scheme (CPS).

Previously, PFAs were required to seek PenCom’s “No Objection” before disbursing funds to Retirement Savings Account (RSA) holders.

However, under the new directive, PFAs can now process and approve various benefits, including programmed withdrawals, retiree life annuities, benefits for temporarily unemployed individuals, and refunds for those exempted from the CPS. This means that RSA holders seeking to access their retirement funds will experience a faster and more efficient approval process.

With the new framework in place, PFAs must process, approve, and complete payment instructions within two working days of completing the necessary documentation.

To implement this reform, PenCom has made key amendments to five regulatory instruments governing benefit administration.

The new directive is expected to enhance service efficiency and accelerate pension benefits processing. RSA holders will no longer have to wait for PenCom’s approval before accessing funds, resulting in a more seamless experience for retirees and individuals eligible for benefits.

This policy shift also reduces administrative delays for pension contributors seeking to withdraw voluntary contributions or make equity payments towards mortgages.

By empowering PFAs to fully execute their statutory functions, PenCom is reinforcing the autonomy of pension administrators while maintaining regulatory oversight.

The directive aligns with the Commission’s broader goal of improving service delivery in Nigeria’s pension industry and ensuring retirees can access their benefits without unnecessary delays.