PenCom Releases Compulsory Requirements for Nigerian Workers' Retirement Savings Account
- PenCom has now mandated the inclusion of the provision of Bank Verification Numbers (BVN) for retirement savings account
- The instruction is directed at saving accounts of workers of both government and also private companies
- There is also a new instruction of the documentation requirements for retirement savings account registration
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The National Pension Commission (PenCom) has issued a directive mandating the inclusion of Bank Verification Numbers (BVN) for all Retirement Savings Account (RSA) registrations and data recapture processes.
This instruction was announced in a circular signed by A.M. Saleem, the Head of the Surveillance Department and will take effect on February 1, 2025.
Source: Getty Images
Why the new requirements
PenCom said the new directive aims to bolster the security and integrity of the pension industry database.
It added that the measure is expected to improve the accuracy of contributor records and protect against fraudulent activities within the pension sector.
The circular added:
This directive aims to enhance the security and integrity of the pension industry database.”
Key Requirements
The circular outlined specific obligations for Pension Fund Administrators (PFAs):
- BVN Validation: PFAs must ensure that the BVN provided for RSA registrations and data recapture contains the correct 11 digits.
- RSA Registration: BVN is now a mandatory field for new RSA registrations, and forms must be updated to reflect this requirement.
- Data Recapture: Existing RSA holders are required to provide their BVN during the data recapture process. PFAs must revise their processes and documentation accordingly.
PenCom has assured that provisions will be made for PFAs to update their records before implementing the circular.
Revised RSA registration documentation requirements
In a previous circular PenCom released documentation requirements for RSA registration to simplify the process for formal sector employees.
Documentation requirements for former employees' registration
1- For employees of Private Sector and Public Sector Self-Funded Agencies:
- Letter of Employment or Letter of Appointment, or
- Staff Identity Card
2- For employees of Public Sector Treasury-Funded Agencies and Police Personnel:
- Letter of First Appointment or Attestation Letter
- Staff Identity Card.
3- Acceptable Means of Identification
If a Letter of Employment is provided as listed in Sections 4.1.2 (1) or 4.1.2 (2), PFAs must also obtain any of the following means of identification:
- Staff Identity Card, or
- National Driver's License, or
- Permanent Voter's Card (PVC), or
- International Passport.
However, where a Staff Identity Card is provided in Sections 4.1.2 (1) or 4.1.2 (2), the requirements in Section 4.1.2 (3) of this Circular become inapplicable.
4- Additional requirements
- National Identity Card or Enrolment Slip issued by the National Identity Management Commission (NIMC), indicating the National Identification Number (NIN).
- Any other additional documentation deemed necessary by the PFA.
- Any other additional documentation specified by the Commission from time to time.
Tinubu’s govt begins payment of 20% pension increment
Legit.ng earlier reported that President Bola Ahmed Tinubu has been commended for paying a 20% pension increase for retirees under the Defined Benefit Scheme (DBS).
The Nigeria Union of Pensioners (NUP) also hailed Tinubu for introducing a minimum pension of N32,000 for retirees.
The 20% pension increase, backdated to January 2024, has been paid to many DBS pensioners.
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Source: Legit.ng
