PenCom Sets June 1 Deadline for Employers to Adopt New Pension Remittance System

PenCom Sets June 1 Deadline for Full Adoption of New Pension Remittance System

The National Pension Commission (PenCom) has mandated all employers to fully adopt the New Pension Remittance System by June 1, 2025. This directive is aimed at optimizing pension contributions, ensuring seamless payments, and addressing long-standing issues with uncredited pension funds.

PenCom Introduces New Pension Remittance System

The newly launched New Pension Remittance System is designed to streamline the process of remitting pension contributions into employees’ Retirement Savings Accounts (RSAs). The initiative, developed in collaboration with the Pension Operators’ Association of Nigeria (PenOp), seeks to eliminate verification delays and ensure pension contributions are promptly credited to employees’ accounts.

According to a statement issued by PenCom in Abuja, the new system will improve efficiency, accuracy, and transparency in pension remittances through the integration of approved Payment Solution Service Providers (PSSPs).

Addressing Pension Contribution Challenges

PenCom stated that the introduction of the New Pension Remittance System was necessary due to persistent challenges faced by employers, including:

• Errors in pension contribution schedules.
• Delays in verifying pension payments.
• Accumulation of uncredited pension contributions.
• Incorrect or incomplete employee information.

These challenges have posed risks to employees’ retirement savings, making it imperative to introduce a more effective and automated process.

• National Pension Commission Directs Suspension of Investments in Commercial Papers
• https://www.thecheernews.com/pandef-lauds-president-tinubu-for-signing-south-south-development-commission-bill-into-law/

How the New Pension Remittance System Works

With the deployment of PSSPs, the pension remittance process will now include an automatic validation of Pension Fund Administrators (PFAs) and RSA holders’ Personal Identification Numbers (PINs) against the PenCom database. This will help eliminate errors that previously led to delays in pension fund allocations.

A major cause of uncredited contributions in the past has been incomplete documentation from employers. The new system integrates mechanisms that prevent errors in uploaded remittance schedules, reducing discrepancies between reported contributions and actual payments.

Key Features of the New Pension Remittance System

The system comes with the following improvements:

• Automated validation of employee details before transactions are processed.
• Reduced administrative delays by verifying employer-submitted data against PenCom’s database.
• Availability of multiple approved PSSPs for employers to choose from, based on service quality, speed, and accessibility.
• Support for various online payment options to ensure immediate contributions to employees’ RSAs.

List of Approved PSSPs for Pension Remittance

PenCom has approved the following PSSPs for pension remittances:

• PAYPEN by Netline Limited
• PENCENTRAL by Chamsaccess Limited
• PENSPHERE (formerly PAYTHRU) 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
• INTERSWITCH by Interswitch Group

These platforms allow seamless pension contributions with enhanced security, accuracy, and efficiency.

Employers Urged to Comply Before Deadline

PenCom has urged all employers and contributors to comply with the New Pension Remittance System to prevent further accumulation of unallocated funds in employees’ RSAs. The commission warned that failure to adopt the new process may result in regulatory actions.

Employers can now access multiple PSSPs, ensuring flexibility in selecting their preferred remittance service. Furthermore, PenCom assured stakeholders that the adoption of the system would not incur additional costs, encouraging widespread compliance.

Impact of the New Pension Remittance System

This initiative is expected to:

• Improve pension fund transparency and accountability.
• Enhance the efficiency of pension remittance processes.
• Minimize errors and ensure prompt crediting of pension funds.
• Provide employers with more efficient payment options.

Final Thoughts

The full adoption of the New Pension Remittance System marks a major milestone in Nigeria’s pension sector. With the June 1 deadline fast approaching, employers must ensure compliance to safeguard employees’ retirement savings and improve pension fund management.

For more updates on pension regulations and financial reforms, stay tuned.

#PenCom, #NewPensionRemittanceSystem, #PensionReform, #PensionFunds, #FinancialInclusion, #RetirementSavings, #NigeriaNews,