The National Pension Commission (PenCom) has wrapped up all processes leading to the roll out on 1st June 2025 the Pension Contribution Remittance System, that will lead to a more transparent, efficient, and error-free process for pension contributions. Harping on the urgency the Commission urges employers to adopt these changes promptly to ensure compliance and preserve the integrity of their employees’ pension contributions.
PenCom stated that the introduction of the Pension Contribution Remittance System is a response to the challenges frequently encountered by employers, including errors in contribution schedules and verification delays.
Following the launch, PenCom in a statement giving details of the new system said it has set June 1, 2025 as the deadline for adopting this new remittance process. “From this date onwards, employers are to channel all pension contributions through the approved Payment Solution Service Providers PSSPs.” Pointing out that approval of PSSP is ongoing the Commission stated it remains open to approving additional PSSPs that meet specified criteria in the future. This provision it noted demonstrates its commitment to continuously improving the CPS and ensuring accessibility for employers across Nigeria.
Explaining further, the Commission stated that its new Pension Contribution Remittance System, is designed to optimise the process of remitting pension contributions into employees’ Retirement Savings Accounts (RSAs). Noting taken away the collaboration with the Pension Operators’ Association of Nigeria (PenOp), in making this system stand, the statement outlined that the deployment of Payment Solution Service Providers (PSSPs) would to enhance accuracy, efficiency, and transparency in pension contributions.
In the past, PenCom identified a challenge of uncredited pension contributions, primarily due to incomplete documentation from employers, which resulted in Pension Fund Administrators (PFAs) being unable to credit the RSAs of affected employees.
In a recent statement, it expressed concerns about the growing pile of uncredited pension contributions in PFAs’ accounts. The Commission called for strict compliance from employers and contributors to address this matter promptly. The inability of PFAs to credit employees’ RSAs could potentially affect their retirement plans. As a result, it is critical to act quickly to correct the situation.
By completely automating pension remittance processes, PenCom and PenOp have taken significant steps towards creating a more robust Contributory Pension Scheme (CPS) for employers and employees, solving the challenge of uncredited pension contributions in the accounts of PFAs. By this development, all employers are to channel all pension contributions through the approved PSSPs, who then validate the PFAs and Personal Identification Numbers (PINs) of the RSA holders with PenCom’s database to eliminate errors, which led to uncredited pension contributions.
Key features of the new system are, error prevention mechanisms, seamless validation process, convenient access to payment providers, instant online payment options and, at no cost to employees.
To ease the shift to this new system, PenCom has outlined a comprehensive, user-friendly guide that employers can follow: steps to follow are: select a Payment Solution Service Provider (PSSP), register on the chosen platform, prepare and upload employee remittance schedule, automatic validation of employee information and, payment initiation and confirmation.
