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Nigeria: PenCom Issues New Guidelines for Pension Fund Administrators’ Branch Operations

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PenCom Issues New Guidelines for Pension Fund Administrators’ Branch Operations
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The National Pension Commission (PenCom) has released a new circular outlining the operational requirements for Licensed Pension Fund Administrators (PFAs) regarding their branches and service centers. This move aims to enhance accessibility and efficiency in pension service delivery across Nigeria.

Expanding PFA Presence for Improved Service Delivery

In the circular issued on Monday evening, PenCom emphasized that the updated regulations will ensure a wider presence of PFAs nationwide while improving their service delivery to Retirement Savings Account (RSA) holders.

As established under the Pension Reform Act 2004, PenCom is responsible for regulating, supervising, and ensuring the effective administration of pension matters in Nigeria. The new guidelines are part of efforts to align PFA operations with growing demand and ensure better pension management.

PenCom outlined two key objectives for the directive:

  1. Expand PFA reach across Nigeria to meet the increasing demand for pension services.
  2. Enhance service efficiency for RSA holders at PFA branches and service centers.

Mandatory Branch and Service Center Expansion for PFAs

According to the new requirements:

  • PFAs must establish a branch in any state where they manage at least 10,000 funded RSAs.
  • A service center must be opened in an additional location within a state where a PFA has 20,000 funded RSAs.
  • A service center is required in states where a PFA manages 2,000 funded RSAs.
  • For state government employees under the Contributory Pension Scheme, a PFA must open a service center once it has 1,000 funded RSAs in that state.
  • The Lead PFA managing a state’s Contributory Defined Benefits Scheme must establish a branch office in the state capital.
  • Every PFA must have branches in at least two states within each geo-political zone in Nigeria, ensuring broad national coverage.

Service Expectations at PFA Branches and Centers

Both PFA branch offices and service centers will be responsible for key pension services, including:

  • Registration and enrollment of contributors
  • Updating pension records
  • Collection and processing of contribution schedules

This directive is expected to significantly enhance accessibility to pension services, ensuring that contributors across Nigeria’s six geopolitical zones can efficiently manage their RSAs. By expanding service touchpoints, PenCom aims to create a more transparent and responsive pension system that aligns with Nigeria’s growing pension sector.

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