The National Pension Commission (PenCom) who oversees the overall policy on pension matters has outlined the steps to transfer retirement savings accounts (RSA) in Nigeria.
The flier from the commission pertains to RSAs that are still in the custody of former employers’. Generally, any other reason for a transfer to another financial institution could be the case since transferring RSA could merge fund into one place.
The commission has set out a standard rule for transferring pension fund under the Pension Reform Act of 2004 Act.
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Steps to transfer retirment savings account in Nigeria
Step 1- Data recapture with current pension fund administrator (PFA)
Make sure that your personal details have been recaptured and updated by the current PFA managing your RSA.
This applies if you opened your RSA before July 1 2019 and have been recaptured.
Step 2 – Submission of RSA transfer request to receiving PFA
Approach the PFA that you intend to move your RSA to (the receiving PFA) and submit the transfer request by providing the following – surname, RSA PIN, email and current phone number.
Step 3 – Validation of identity with receiving PFA
You will be required to provide your fingerprint to the receiving PFA. It will use it for authentication of your identity on the national identity management commission, NIMC, database.
Thereafter, the receiving PFA will issue a printed confirmation slip. This should be signed by you as proof that your transfer has been submitted.
Step 4 – Transfer RSA and funds to receiving PFA by current PFA
Your current PFA will transfer all your RSA funds to your new PFA when the application transfer quarter is done. PenCom closely monitors the process.
Step 5 – Notification to RSA holder of successful transfer
You will be notified by PenCom and the receiving PFA when your RSA has been transferred.
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Transfer outlines
The PenCom is in charge of the pension industry to ensure that retirement benefits are paid when they are due.
Every employer and employer are expected to already have retirement savings account with a PFA of choice. The transfer of RSA can only be done once a year and must be done using the RTS system. It is also free.