The Nationwide Pension Fee (PenCom) has issued a brand new directive that grants Pension Fund Directors (PFAs) the complete authority to approve and course of a number of classes of retirement advantages with out requiring prior approval from the Fee.
This coverage change, which takes impact on June 1, 2025, is aimed toward streamlining pension funds and lowering bureaucratic delays in Nigeria’s Contributory Pension Scheme (CPS).
Beforehand, PFAs have been required to hunt PenCom’s “No Objection” earlier than disbursing funds to Retirement Financial savings Account (RSA) holders.
Nonetheless, below the brand new directive, PFAs can now course of and approve varied advantages, together with programmed withdrawals, retiree life annuities, advantages for quickly unemployed people, and refunds for these exempted from the CPS. Which means RSA holders in search of to entry their retirement funds will expertise a sooner and extra environment friendly approval course of.
With the brand new framework in place, PFAs should course of, approve, and full cost directions inside two working days of finishing the mandatory documentation.
To implement this reform, PenCom has made key amendments to 5 regulatory devices governing profit administration.
The brand new directive is anticipated to boost service effectivity and speed up pension advantages processing. RSA holders will not have to attend for PenCom’s approval earlier than accessing funds, leading to a extra seamless expertise for retirees and people eligible for advantages.
This coverage shift additionally reduces administrative delays for pension contributors in search of to withdraw voluntary contributions or make fairness funds in the direction of mortgages.
By empowering PFAs to completely execute their statutory features, PenCom is reinforcing the autonomy of pension directors whereas sustaining regulatory oversight.
The directive aligns with the Fee’s broader aim of bettering service supply in Nigeria’s pension business and guaranteeing retirees can entry their advantages with out pointless delays.
