PenCom Issues New Guidelines to Improve Pension Fund Operations
By Patience Ikpeme
The National Pension Commission (PenCom) has introduced new guidelines for managing branch offices and service centers of Pension Fund Administrators (PFAs) across Nigeria.
The directive, outlined in a circular issued by the Commission, aims to enhance service delivery for Retirement Savings Account (RSA) holders and retirees.
According to the circular, PFAs must adhere to specific criteria when establishing, managing, or relocating branch offices and service centers. The guidelines cover essential aspects such as staffing, infrastructure requirements, procedures for relocation or closure, and penalties for non-compliance. The move is part of PenCom’s broader strategy to strengthen the presence of PFAs nationwide and improve the efficiency of pension administration.
One of the key reforms introduced is the establishment of virtual branches, allowing PFAs to expand their services beyond physical locations. Additionally, while PFAs are still required to set up a service center for every additional 10,000 Retirement Savings Accounts (RSAs), previous location restrictions for these centers have now been relaxed, giving administrators greater flexibility in their operations.
For PFAs handling pensions for state government employees under the Contributory Pension Scheme (CPS), the new guidelines mandate the opening of a branch office in the state capital once the state begins funding the scheme. Furthermore, if the number of funded RSAs reaches 1,000, a service center must be established to cater to pension contributors in the state.
The guidelines also require PFAs to notify PenCom before closing or relocating any branch or service center. This measure ensures transparency and continuity in service delivery, preventing disruptions for RSA holders.
PenCom’s latest regulations are designed to simplify pension fund operations while ensuring that retirees and contributors receive better support and more accessible pension services across Nigeria.
