From Joseph Inokotong, Abuja
Retirement Saving Accounts (RSA) holders under the Contributory Pension Scheme (CPS) have responded overwhelmingly to the opening of the RSA Transfer Window.
A total of 12,681 RSA transfers took place in the Transfer Quarter, which ended on March 31, more than quadrupled the maiden Transfer Quarter, which ended on December 31, 2020, with a total number of 2,799 RSA holders transferring their RSAs to various Pension Fund Administrators (PFAs).
As more people key into the programme, a consistently upward trajectory is anticipated, as RSA holders continue to realise the ease with which they can initiate the transfer of their RSAs.
The launching of the RSA Transfer System (RTS) on November 16, 2020, by the National Pension Commission (PenCom) heralded the full implementation of one of the cardinal features of the Contributory Pension Scheme (CPS), the portability of RSAs.
By this development, RSA holders have been empowered to move their RSAs from their current Pension Fund Administrators (PFAs) to other PFAs of their choice, whenever they desire to do so.
The opening of the ‘Transfer Window’, as it is popularly called, has been embraced by a large number of RSA holders in their quest for better service delivery and returns on investment from PFAs.
The Commission has ensured that the requirements for initiating RSA transfers are minimal, and has also made available on its website, necessary information to guide RSA holders through the process.
Specifically, its publication of the ‘Frequently Asked Questions’ (FAQ) on RSA transfers, provides RSA holders with all they need to know about RTS.
The RTS is a fully automated, efficient and transparent process that has pre-defined timelines.
It ensures hassle free movement of RSAs across PFAs, and as the transfer of RSAs involves movement of pension assets between PFAs, the entire process attracts the full weight of the Commission’s regulatory surveillance.
The fact that the process has been completely free of charge has also given RSA holders an added advantage.
Overall, the opening of the RSA Transfer Window is revolutionary, and going forward, high standards of service delivery will be a focal point in the Pension Industry.