Pension transfer window‘ll not take off this year - investigation

 

 

Chuks Udo Okonta

Pension contributors who are anxiously waiting for the transfer window to port from their fund managers to other service providers would have to wait till next year to make their expectations come through, as operators have said they are not ready to commence the process.

Inspen gathered from a reliable source that the National Pension Commission (PenCom) and operators are still battling with some challenges especially biometric issues which are considered a clog to the transfer process.

The Managing Director of a pension firm said in an interview that operators are all concerned about having the window opened and that due to some challenges, operators and PenCom would not commence the process in the immediate.

She noted that part of the process of the transfer window is ensuring that operators’ records are complete and accurate, adding that as part of the process, the identification method must be had, and to achieve a seamless transfer, the biometrics must be carefully done.

She said: “We are all concerned, it is important we get it in place. So, I believe that towards the end of the year, we would have made significant process, and we would begin to talk of specific time lag by then. As at now, we can give you assurance that it is upmost in our minds and it is receiving a lot of attention from the regulator and operators.

“We have engaged consultants, done costing and have made significant process. PenCom also has its side of the transfer window and they are working seriously too. The true is that they are not ready and we are also not ready yet.

“If I want to transfer my account from Pension Fund Administrator A to B, the PFA had to identify me to ensure that it is my account that is being moved from A to B. The only way to have a seamless transfer is to have biometrics. That is the crust of the transfer window; otherwise, you would find that in moving a subscriber’s account from a point to another, you may move the data of another person.  

“Biometrics is the crux and it is what we are waiting to put in place. There is a PenCom leg and operators leg in the biometrics process. If you look at it on our attempt in Nigeria to have an identity, you would see that it is complicated process.”

She noted that  data process has remain a challenge in Nigeria, adding that as the nation lacks identity process, having a good biometrics process would take some time.

She said the operators having considered the extent of work and cost required to build a reliable database, decided, to put effort together, stressing that while the operators are working on the process, they are also pursuing collaboration with other industries that are considering a biometric system.