PenCom Grants PFAs Full Authority to Approve Retirement Benefits
The National Pension Commission (PenCom) has granted pension fund administrators (PFAs) full authority to approve and process several categories of retirement benefits without requiring prior clearance, aiming to cut bureaucratic delays and speed up disbursements under Nigeria’s contributory pension scheme.
Effective June 1, PFAs can independently handle programmed withdrawals, retiree life annuities, payments for temporarily unemployed individuals, and refunds for those exempted from the scheme. PenCom mandates that PFAs process and approve payments within two working days after documentation is completed, with pension fund custodians (PFCs) effecting payments within 24 hours through a shared folder system for seamless communication. However, PenCom will continue overseeing approvals for depleted RSAs and death benefits. To facilitate the transition, five regulatory frameworks have been revised, including those related to retirement and terminal benefits, voluntary contributions, RSA balance access for mortgages, additional benefits for retirees, and pension enhancements, ensuring faster access to pension funds and reducing approval bottlenecks.
