The National Insurance Commission, says it has put safety checks to deflate any form of abuse of the Retirement Savings Account Transfer System, including denial of right to RSA holders who intend to exercise the right to do so.
The head of ICT, PenCom, Mr. Polycarp Anyanwu, set the strong position of the Commission at the 2020 media retreat webinar on zero tolerance, for any Pension Fund Administrator that builds a wall to hedge transfer request.
Anyanwu said there is a strict sanction for any PFA that stone walls a request for transfer; he said the Commission anticipates that such obstruction could happen and has already prepared to address such issues.
He said any contributor that is denied the right to set rolling the process of transfer could report to the Commission for appropriate action.
He also said that when transfer is effected, it’s the cash that is moved not the assets of the contributor, and the level of investment of funds still remains the same at the point of transfer. Besides, he said the funds invested by the PFA is regulated and the chance of default in assets of the contributor from the Custodian is a no dice situation because, the regulation on fund investment is set to knock out violations.