The National Pension Commission (PenCom or the Commission) has announced, through a press release, the initiation of the Retirement Savings Account (RSA) transfer system, which will enable contributors under the Contributory Pension Scheme to transfer their accounts from one Pension Fund Administrator (PFA) to another, once a year. This is in line with Section 13 of the Pension Reform Act, 2014 (PRA) which states that RSA holders can transfer their accounts from one PFA to another once a year.
The set date for the launch of the RSA Transfer System is Monday, 16 November 2020, which will also be the formal commencement of the 2020 transfer window.
PenCom has also assured the public that it has put in place an RSA transfer application platform for the ease of transfer between RSAs. The Commission has also conducted workshops for licensed Pension Operators and State Pension Bureaus to facilitate ease of transfer from one PFA to another.
It is believed that this initiative will foster competition among the PFAs and improve overall service delivery within the sector. Account-holders are advised to take advantage of this window to obtain better returns on account, service delivery, and other benefits.
Although PenCom is yet to release any Regulations guiding the transfer of accounts, we commend the Commission for finally putting in place a mechanism for contributors to take advantage of the provisions of Section 13 of the PRA, 2014 to enhance their investments.