You have until June 1 to adopt new pension remittance process, PenCom warns employers

The National Pension Commission (PenCom) has set June 1 as the deadline for employers to fully adopt a new pension remittance process.

The PenCom announced the launch of the pension contribution remittance system, a platform designed to optimise the process of remitting pension contributions into employees’ Retirement Savings Accounts (RSAs) on Thursday.

According to a statement from the management, in Abuja, the process is to streamline the process of remitting pension contributions into employees’ RSAs.

The initiative, it said, was developed in collaboration with the Pension Operators’ Association of Nigeria (PenOp) and aims to resolve long-standing issues related to uncredited pension contributions and verification delays in the accounts of Pension Fund Administrators (PFAs).

The commission said that the system incorporates approved Payment Solution Service Providers (PSSPs) to improve efficiency, accuracy, and transparency.

The commission said that the introduction of this system was necessary due to persistent challenges faced by employers, including errors in contribution schedules and delays in verification.

These issues, it said, resulted in uncredited pension contributions, which pose a risk to employees’ retirement savings.

The commission called on employers and contributors to strictly comply with the new remittance framework to prevent further accumulation of funds that are yet to be allocated to employees’ RSAs.

It said the inability of PFAs to credit employees’ accounts due to incorrect or incomplete information has been a major concern, and urgent action is required to rectify the situation.

According to the commission, the deployment of PSSPs, the remittance process would now involve an automatic validation of PFAs and RSA holders’ Personal Identification Numbers (PINs) against PenCom’s database.

It said that the measure is expected to eliminate errors that have previously led to delays in crediting pension contributions.

PenCom observed that a major cause of uncredited contributions in the past was incomplete documentation from employers, which prevented PFAs from processing the funds correctly.

The commission said the new system is designed with several key features to ensure smooth operation; it incorporates mechanisms that prevent errors in uploaded remittance schedules, reducing discrepancies between reported contributions and actual payments.

The platform also verifies employee details with PenCom’s database before transactions are processed, significantly cutting down on administrative delays.

Employers now have access to multiple approved PSSPs, allowing them to select providers based on their service preferences, speed, and accessibility.

The approved PSSPs include PAYPEN by Netline Limited, PENCENTRAL by Chamsaccess Limited, PENSPHERE (formerly PAYTHRU) by Pethahiah Rehoboth Int’l Limited, and PENREMIT by Cyberspace Limited.

Others are 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.

According to the commission, these platforms support various online payment options, enabling employers to make immediate contributions to their employees’ RSAs.

PenCom assured employers that using the new system would not attract any additional costs. This approach is expected to encourage greater compliance while improving the efficiency of pension remittances. (NAN)