The Pension Fund Administrators (PFAs) across the country are currently jostling to retain their current customers as the pension Transfer window opens next week, LEADERSHIP learnt.
The over nine million pension contributors, upon commencement of the window, now have opportunity to switch PFAs once in a year.
Some customers, had, before now, complained about low quality services they were getting from the pension outfits, and expressed disappointment over the inability to switch PFAs unless the transfer window is opened.
As at yesterday, most pension fund operators have upgraded their Information Technology (IT) system to provide seamless and efficient services to Retirement Savings Account (RSA) holders in a bid to retain them when the window is opened on Monday, 16th of November, 2020.
While LEADERSHIP learnt that most PFAs had already sent mails to their customers intimating them of the new development, they are, however, persuading their respective RSA holders to still maintain their accounts with them going forward.
When the window is finally opened, market observers expect a stiffer competition among pension fund operators in a battle to outdo one another in the pension industry, which experts believe, would be to the benefits of over nine million pension subscribers.
Section 13 of the Pension Reform Act, 2014 allows Contributors to move their Retirement Savings Account (RSA) through a transfer window from one Pension Fund Administrator (PFA) to another, provided that it is not more than once in a year.
Since 2004 when the new pension scheme was established till now, there were efforts to open the transfer window, but most contributors, according to findings, have dual or multiple identities with some having incomplete information, while some information provided are already outdated.
Some, it was learnt, had changed residential and official addresses severally since they last submitted their data, hence, making the already data at the disposal of PFAs inferior and lack the needed quality to commence transfer window.
The pension transfer Window was meant to enhance quality service delivery of the PFAs to their clients, by making the operating environment competitive, hence, leading to better customer service delivery.
For the transfer window to commence, a new or updated data of the over 9 million pension contributors have to be recaptured to ensure that, going forward, the data at the disposal of PFAs have the needed quality to kickstart the initiative.
To this end, PFAs have embarked on data recapturing of their customers in the last one year and a sizable number of RSA holders have so far been captured, hence, the reason why the industry regulator deem it fit to open the transfer window.
Confirming the expected commencement of the transfer window, a statement from the National Pension Commission (PenCom) and made available to LEADERSHIP, informed all stakeholders and the general public, especially RSA holders under the Contributory Pension Scheme (CPS) that it has concluded arrangements for the take-off of RSA Transfers.
It added that RSA holders may transfer their accounts from one Pension Fund Administrator (PFA) to another once in a year, in line with Section 13 of the Pension Reform Act 2014.
“The launch date for the RSA Transfer System is scheduled for Monday 16 November, 2020. This will signify the official opening of the RSA Transfer Window,” it said.
PenCom maintained that, prior to this launch, it had successfully developed the RSA Transfer application, a robust electronic platform that would enable seamless RSA transfers, adding that, in addition, it had conducted extensive workshops for licensed Pension Operators and State Pension Bureaus in readiness for this epoch-making event.
The commission said 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.