Transfer Window For N10.8trn Pension Asset Delayed By Covid-19

The implementation of the Pension Transfer Window for contributors of the N10.8trn pension fund asset is being delayed by the outbreak of the coronavirus pandemic, THE WHISTLER has learnt.

The transfer window is a platform created by PenCom to enable pension contributors who are dissatisfied with the services of their current Pension Fund Administrators to transfer their Retirement Savings Account to any Pension Fund Administrator of their choice

The transfer window promises to be an exciting happening within the industry as PFAs are set to slug it out with each other in a competitive market to retain old contributors and as much as possible win new ones.

Section 13 of the Pension Reform Act 2014 stipulates that, “subject to guidelines issued by the Commission, a holder of a Retirement Savings Account maintained under this Act may not, more than once in a year, transfer his account from one Pension Fund Administrator to another.”

However, the law is yet to be implemented by the National Pension Commission as the Commission is working on modalities and regulations under which such transfers would be effected.

When the window is opened, a contributor will be allowed to transfer the funds in his or her Retirement Savings Account to a Pension Fund Administrator of his or her choice without providing any reason for such transfer.

The objectives of the regulation are to allow for seamless transfer of RSAs from one PFA to another, facilitate transfer of pension assets within the industry, engender ethical competition among PFAs, and improve service delivery to RSA holders

Before now, PenCom had hinted that the long -awaited pension transfer window would commence in June, 2020.

Confirming the delay in the implemententation, the Commission told this Newspaper that the outbreak of coronavirus pandemic in the country was responsible for the late take-off of the initiative.

The Head, Corporate Communications, National Pension Commission, Mr. Peter Aghohowa, in an interview with THE WHISTLER said the regulator was still working to ensure the implemententation of the transfer window policy.

Aghohowa said the fact that a date had been tentatively fixed indicated that work was in progress to actualise the mandate.

He said ”During this pandemic every thing has been affected.”

The outbreak of Covid-19 pandemic has taken a toll on the pension industry, forcing some PFAs to enforce either complete or partial shutdown of business activities nationwide.

The PenCom Spokesman, however, said the Commission have since activated the Federal Government’s directive that staff from level 12 below should compulsorily stay at home, thus making work slow.