The ohas directed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to pay and process pension benefits within three working days of receiving applications from eligible retirees and account holders.
In line with a March 12, 2025 circular, PenCom stated that effective June 1, 2025, PFAs would no longer need to seek prior approval or a “No Objection” from the commission in order to process and pay benefits such as programmed withdrawals, retiree life annuities, and temporary loss of employment benefits.
As per the new guidelines, PFAs have to approve eligible benefit applications within two working days of receipt of all documents, and PFCs must make payments within 24 hours of receipt of instructions from PFAs. The step is likely to accelerate the process of pension payment and facilitate timely access to benefits for the Retirement Savings Account (RSA) holders.
However, PFAs are still needed to submit requests for approval of depleted RSAs and death benefit applications, according to Section 8 (2) of the Pension Reform Act 2014.
PenCom reaffirmed that it will be closely monitoring compliance through regulatory technology platforms and other supervisory tools. The commission also reaffirmed that it will be taking necessary regulatory actions where necessary in order to promote transparency, accountability, and integrity of the pension system.
In addition, RSA holders were advised to submit all documents required on time to facilitate easy access to their benefits. Prospective retirees are encouraged to submit documentation required six months before retirement, as contained in PenCom’s rules and guidelines.
The reform is expected to remove delays substantially, enhance operational efficiency, as well as service delivery in the pension industry.
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Olawale Moses Oyewole is an adept writer who stays on top of current events and curate informative and engaging articles for his readers. He is a digital strategist who help brands gain online visibility.
