PenCom sets June 1 deadline for new pension remittance system 

The initiative aims to enhance the efficiency, accuracy, and transparency of pension contributions into employees’ Retirement Savings Accounts (RSAs).

PenCom disclosed the launch of the pension contribution remittance system in a statement issued in Abuja.

The platform, developed in collaboration with the Pension Operators’ Association of Nigeria (PenOp), is designed to address longstanding issues related to uncredited pension contributions and verification delays in the accounts of Pension Fund Administrators (PFAs).

“The initiative aims to resolve long-standing issues related to uncredited pension contributions and verification delays in the accounts of Pension Fund Administrators (PFAs),” the commission stated.

Naijaonpoint reported that PenCom approved nine Payment Solution Service Providers (PSSPs), to facilitate seamless pension contribution remittances.

As part of this shift, the commission has transitioned to an online Pension Contribution Remittance System (PCRS), replacing manual pension remittances to improve efficiency

The step-by-step guide for employers to select and use a Payment Solution Service Provider (PSSP) for pension remittance are:

The commission emphasized that the new system integrates approved Payment Solution Service Providers (PSSPs) to optimize the remittance process. It noted that the move was necessary due to persistent challenges faced by employers, including errors in contribution schedules and delays in verification.

“These issues resulted in uncredited pension contributions, which pose a risk to employees’ retirement savings,” PenCom stated.

“The inability of PFAs to credit employees’ accounts due to incorrect or incomplete information has been a major concern, and urgent action is required to rectify the situation,” the statement noted.

A major cause of uncredited contributions in the past was incomplete documentation from employers, which prevented PFAs from correctly processing the funds.

The new system incorporates mechanisms to prevent errors in uploaded remittance schedules, reducing discrepancies between reported contributions and actual payments.