PenCom Launches New Pension Contribution Remittance System
…Sets June 2025 Deadline for Compliance
By Patience Ikpeme
The National Pension Commission (PenCom) has introduced a new Pension Contribution Remittance System to streamline the process of remitting pension contributions into employees’ Retirement Savings Accounts (RSAs).
Developed in partnership with the Pension Operators’ Association of Nigeria (PenOp), the system incorporates approved Payment Solution Service Providers (PSSPs) to improve efficiency, accuracy, and transparency.
PenCom has set June 1, 2025, as the deadline for employers to fully adopt this new process. From that date, all pension contributions must be made through the designated PSSPs.
The Commission explained that the introduction of this system was necessary due to persistent challenges faced by employers, including errors in contribution schedules and delays in verification. These issues have resulted in uncredited pension contributions, which pose a risk to employees’ retirement savings.
In a statement issued on Thursday in Abuja, PenCom noted concerns about the increasing volume of uncredited pension contributions in the accounts of Pension Fund Administrators (PFAs).
It called on employers and contributors to strictly comply with the new remittance framework to prevent further accumulation of funds that are yet to be allocated to employees’ RSAs. The inability of PFAs to credit employees’ accounts due to incorrect or incomplete information has been a major concern, and urgent action is required to rectify the situation.
With the deployment of PSSPs, the remittance process will now involve an automatic validation of PFAs and RSA holders’ Personal Identification Numbers (PINs) against PenCom’s database. This measure is expected to eliminate errors that have previously led to delays in crediting pension contributions.
PenCom observed that a major cause of uncredited contributions in the past was incomplete documentation from employers, which prevented PFAs from processing the funds correctly. By fully automating pension remittances, PenCom and PenOp have taken steps toward strengthening the Contributory Pension Scheme (CPS) and addressing the longstanding challenge of uncredited pension contributions.
The new system is designed with several key features to ensure smooth operation. It incorporates mechanisms that prevent errors in uploaded remittance schedules, reducing discrepancies between reported contributions and actual payments. The platform also verifies employee details with PenCom’s database before transactions are processed, significantly cutting down on administrative delays.
Employers now have access to multiple approved PSSPs, allowing them to select providers based on their service preferences, speed, and accessibility. The approved PSSPs include PAYPEN by Netline Limited, PENCENTRAL by Chamsaccess Limited, PENSPHERE (formerly PAYTHRU) by Pethahiah Rehoboth Int’l Limited, PENREMIT by Cyberspace Limited, PENSOL by Uniswitch Technology Limited, ENCO by Gemspay Solutions Limited, AWABAH by Awabah Remit Services Limited, PCOSS by Nigeria Inter-bank Settlement Systems Plc, and INTERSWITCH by Interswitch Group. These platforms support various online payment options, enabling employers to make immediate contributions to their employees’ RSAs.
PenCom has assured employers that using the new system will not attract any additional costs. This approach is expected to encourage greater compliance while improving the efficiency of pension remittances.
To facilitate a seamless transition, PenCom has provided a step-by-step guide for employers. The process begins with selecting a preferred PSSP from the list of approved providers. Employers are then required to register on the chosen platform by creating an employer profile and submitting necessary business details.
After registration, they must prepare and upload an accurate remittance schedule, ensuring that employee information, including RSA PINs, is correct. The system will then automatically validate the details against PenCom’s database. Any flagged discrepancies must be resolved before the submission can proceed. Once the validation is successful, employers can initiate payments and receive confirmation records for compliance purposes.
PenCom has indicated that additional PSSPs may be approved in the future, as part of its efforts to continuously enhance the pension remittance process and ensure broader accessibility for employers nationwide.
With the rollout of the new Pension Contribution Remittance System, PenCom said it is confident that pension contributions will now be processed with greater transparency and efficiency.
Employers are therefore urged to swiftly integrate into the system to comply with the deadline and safeguard their employees’ retirement savings.
