Why transfer window has not commenced - PenCom

Chuks Udo Okonta

Inability of the National Pension Commission (PenCom) to conclude works on the supporting Information and Technology (IT) applications has delayed the commencement of the transfer window which will enable pension contributors change operators Inspen, has learnt

Our investigations revealed that PenCom is still battling to settle some issues surrounding the initiative.

Head, Research and Corporate Strategy PenCom, Dr Farouk Aminu, said the Commission is still working on the transfer window issues.

He noted that the framework has been issued to operators for implementation, adding that however, work is still ongoing on the supporting information and technology application that would drive the initiative.

To ensure seamless operation of the initiative, penCom mandated Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to deploy IT infrastructure for the transfer process.

It noted that such IT infrastructure must have adequate storage and retrieval capability for a period of 10 years.

PenCom said: "Every PFA / PFC shall be required to achieve and maintain an IT infrastructural level as prescribed by the Commission in section 3.0 of the guidelines for the operations of Pension Fund Administrators.

"In addition to the IT requirements, operators must have automated fingerprint capturing equipment for capturing fingerprints (PFAs).

"Automated Document Management System for the transfer of RSA holder’s documents between the PFAs and the RSA Transfer Clearing System (PFAs & PFCs).

"Every PFA / PFC official shall abide by the Code of Ethics and Business Practices issued by the Commission and respect the confidentiality of sensitive information relating to the transfer process."

PenCom noted that Section 11 (2) of the Pension Reform Act (PRA) 2004, specifies that the employee may, not more than once in a year, transfer the Retirement Savings Account (RSA) from one Pension Fund Administrator (PFA) to another without adducing any reason for such transfer.

It said notwithstanding, section 11 (2) of the PRA 2004, the provisions of this regulation applies to a single transfer of RSAs within a calendar year, adding that subsequent review of the regulation would address multiple transfers of RSAs within a calendar year.

PenCom noted that RSA transfers shall only be effected on a calendar quarter basis; namely 1st, 2nd, 3rd and 4th quarters, adding that however, an RSA holder seeking subsequent transfer of his/her RSA shall be eligible for such transfer after 12 consecutive months from the date of the last approved transfer.
PenCom said failure by PFAs/PFCs to provide customer service support to RSA holders shall attract a fine of N100,000 per RSA and N10,000 for every month of violation. In the same vein, a monthly sanction of N100,000 per RSA shall be imposed on any PFA who violates the law.