There are indications that more pension account holders are getting disenchanted with the management of their accounts by their Pension Fund Administrators, PFAs, leading to a 353.1 percent rise in the number of Retirement Savings Account, RSA, switching under the Contributory Pension Scheme, CPS, in the first quarter of 2021, Q1’21, alone.
The Q1’21 CPS report shows 12,681 accounts were moved from the original PFAs as against 2,799 in the preceding quarter of 2020, Q4’20.
Accordingly, the value of the pension fund that was transferred from one PFA to another increased by 152.9 per cent to N47.8 billion in Q1’21 from N18.9 billion in Q4’20.
It will be recalled that the transfer window known as Retirement Savings Account Transfer System (RTS) was launched by the National Pension Commission, PenCom, on the 16th of November, 2020 in Abuja, in accordance with Section 13 of the Pension Reform Act, 2014.
The Act allows contributors to move their Retirement Savings Account (RSA) through the transfer window from one Pension Fund Administrator (PFA) to another, provided that it is not more than once a year.
Also recall that immediately after the launch, over 2,100 RSA holders applied to move their pension accounts from their current PFA to a new one.
Speaking on the development at a virtual training, Head, ICT, PenCom, Mr. Polycarp Anyanwu, said that most of the contributors that switched to new PFAs were not satisfied with the service delivery of their former PFA.
Anyanwu, however, said that the development will enhance quality service delivery at the PFAs. Also speaking, Head, Corporate Communications, PenCom, Mr. Peter Aghahowa, said that the activation of the RSA transfer process will engender competition and improve service delivery in the pension industry, while asserting the right of RSA holders to determine which PFA manages their pension contributions and retirement benefits.
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