PenCom Unveils Pension Remittance Platform to End Uncredited Contributions
The National Pension Commission (PenCom) has launched a new pension contribution remittance system aimed at optimizing the process of remitting pension contributions into employees’ Retirement Savings Accounts (RSAs).
In a statement released on Thursday, PenCom explained that the system was developed in collaboration with the Pension Operators’ Association of Nigeria (PenOp). The new platform is designed to enhance the accuracy, efficiency, and transparency of pension contributions.
PenCom highlighted that the introduction of the remittance system addresses long-standing challenges faced by employers, including errors in contribution schedules and delays in verification processes. A major concern was the issue of uncredited pension contributions, which arose primarily due to incomplete documentation from employers. This issue had led to Pension Fund Administrators (PFAs) being unable to properly credit the RSAs of affected employees.
In a recent statement, PenCom expressed its concerns over the increasing number of uncredited pension contributions in PFAs’ accounts and called on employers and contributors to take prompt action to resolve the issue. Failure to properly credit employees’ RSAs could negatively impact their retirement plans, making it crucial to act quickly to address the situation.
“By automating pension remittance processes, PenCom and PenOp have made significant strides toward strengthening the Contributory Pension Scheme (CPS), solving the challenge of uncredited pension contributions,” the commission said.
Under the new system, all employers will be required to direct pension contributions through approved Payment Solution Service Providers (PSSPs). These PSSPs will validate the PFAs and Personal Identification Numbers (PINs) of RSA holders with PenCom’s database, thereby eliminating errors that have led to uncredited contributions.
PenCom has set June 1, 2025, as the deadline for employers to fully adopt the new remittance process. Employers are instructed to ensure that all pension contributions are channeled through the approved PSSPs.
The commission also noted that it will continue to approve additional PSSPs that meet specified criteria in the future, demonstrating PenCom’s commitment to improving the CPS and ensuring greater accessibility for employers across Nigeria.
“As the Pension Contribution Remittance System is implemented, 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 safeguard the integrity of their employees’ pension contributions,” the statement concluded.
