A major shift in pension contribution remittance is underway as the National Pension Commission, PenCom, sets June 1 as the deadline for employers to transition to its newly launched remittance system.
The initiative aims to streamline the process of crediting employees’ Retirement Savings Accounts, RSAs, and resolve persistent issues of uncredited contributions. The commission introduced the new system in collaboration with the Pension Operators’ Association of Nigeria to enhance efficiency, accuracy, and transparency in pension remittances. Employers are required to comply with the framework to prevent the accumulation of funds that have yet to be allocated to employees’ RSAs.
PenCom stated that the existing remittance system has posed several challenges, including errors in contribution schedules, verification delays, and incomplete documentation from employers. These issues have resulted in uncredited pension contributions, which could negatively impact employees’ retirement savings. The new system is designed to eliminate these problems and ensure seamless processing.
A key feature of the platform is the integration of Payment Solution Service Providers, PSSPs, which will validate employees’ Personal Identification Numbers against PenCom’s database before transactions are processed. This step is expected to prevent errors that previously caused delays in crediting pension contributions.
Employers now have access to multiple approved PSSPs, enabling them to select providers based on service preferences, speed, and accessibility. The approved providers include PAYPEN by Netline Limited, PENCENTRAL by Chamsaccess Limited, PENSPHERE by Pethahiah Rehoboth Int’l Limited, PENREMIT by Cyberspace Limited, PENSOL by Uniswitch Technology Limited, ENCO by Gemspay Solutions Limited, AWABAH by Awabah Remit Services Limited, PCOSS by Nigeria Inter-bank Settlement Systems Plc, and INTERSWITCH by Interswitch Group.
These platforms support various online payment options, allowing employers to make immediate contributions to employees’ RSAs. The automated validation process ensures that pension funds are credited accurately and promptly, reducing the risk of discrepancies between reported contributions and actual payments.
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One of the significant concerns PenCom aims to address is the inability of Pension Fund Administrators to credit employees’ accounts due to incorrect or incomplete information. With the new system in place, the verification of employee details before processing transactions will significantly reduce administrative delays.
PenCom assured employers that the transition to the new system would not attract any additional costs. This approach is expected to encourage greater compliance with pension regulations while improving the efficiency of pension remittances across the country.
With the June 1 deadline approaching, PenCom is urging all employers to adopt the system promptly to ensure a seamless transition. Failure to comply with the new framework could result in further complications in pension remittances, affecting both employers and employees.
The commission remains committed to ensuring that employees’ pension contributions are securely and accurately processed, reinforcing its dedication to a more transparent and efficient pension administration in Nigeria.
NAN
