The National Pension Commission (PenCom) has officially launched its new Pension Contribution Remittance System, aimed at optimising the process of remitting pension contributions into employees’ Retirement Savings Accounts (RSAs).
PenCom, in a statement made available on Thursday said the system, developed in collaboration with the Pension Operators’ Association of Nigeria (PenOp), has deployed approved Payment Solution Service Providers (PSSPs) to enhance accuracy, efficiency, and transparency in pension contributions.
The pension regulator explained that the introduction of the Pension Contribution Remittance System was a response to the challenges frequently encountered by employers, including errors in contribution schedules and verification delays.
PenCom further explained that in the past, it 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, PenCom 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,” PenCom.
The Commission has set June 1, 2025 as the deadline for adopting this new remittance process, noting: “From this date onwards, employers are to channel all pension contributions through the approved PSSPs. PenCom remains open to approving additional PSSPs that meet specified criteria in the future. This move demonstrates PenCom’s commitment to continuously improving the CPS and ensuring accessibility for employers across Nigeria.
“As the Pension Contribution Remittance System rolls out, PenCom is optimistic that it will lead to a more transparent, efficient, and error-free process for pension contributions. Employers are encouraged to adopt these changes promptly to ensure compliance and preserve the integrity of their employees’ pension contributions,” the statement concluded.
