At the sound of the pistol signalling the maiden quarterly race to the Retirement Savings Account Transfer System (RTS), over 2,100 RSA holders have made for the exit transfer window.
This is a definite statement that they are ready to exercise their right to switch Pension Fund Administrators. They have therefore, applied to the National Pension Commission, (PenCom), to effect their transfers.
PenCom ICT head, Mr. Polycarp Anyanwu, disclosed this today to pension correspondents at virtual 2020 media retreat hosted by Pension Fund Operators Association of Nigeria. He said that between November16-30, over 2100 applications were received and being processed in accordance with section 13 of the pension Reform Act, 2014, which allows contributors to switch PFAs not more than on a year.
Polycarp explained that the contributors seeking the first switch, might have experienced service hiccups and are ready to leave their current PFA to a preferred one they have accepted will provide better service.
In a digest of how the transfer system operates, Anyanwu said the RTS has four quarters every year to process transfer: March 31, June 30, September 30 and December 31. Therefore, contributors who desire to switch PFAs, are expected to submit to the Commission documentation including finger prints which serves as the contributors attorney to execute transfer. The input from the RSA holder shall reach the Commission not later than a month to the set quarter date, to allow the PFAs involved and PenCom, required time to effect the change.
Anyanwu said the impact of the launch of the transfer system since November 16, is already showing by the observed focus on quality service by the PFAs in a manner not seen before now. Also aligning with that is the head, corporate communications, PenCom, Mr. Peter Aghahowa, who said the transfer process has already spiked improved service in the pension industry
The President of PenOp, Mr. Wale Odutola, who is also the managing director, ARM Pension PFA, said the launch of the transfer system has not only led to a new landscape of improved service, the PFAs were also ready for the seamless transfer that would follow, by making their IT complaint and ready to meet expectations.
Odutola said apart from improved service which has already sprout for the mutual benefit of the operators and the contributors, he expects the industry to ultimately grow and impact the economy, improve its contribution to GDP and be in a position to serve as a major economy influencer.