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The National Pension Commission (PenCom) has introduced a digital pension remittance platform designed to automate the process of pension contribution remittances and address longstanding challenges in crediting employees’ Retirement Savings Accounts (RSAs).
The new Pension Contribution Remittance System (PCRS), developed in collaboration with the Pension Operators’ Association of Nigeria (PenOp), is aimed at enhancing transparency, minimizing errors, and improving compliance under the Contributory Pension Scheme (CPS).
A Streamlined and Transparent Remittance Process
Under the updated system, all pension contributions must be processed through approved Payment Solution Service Providers (PSSPs), which will verify employee details before funds are credited to RSAs.
The initiative was driven by the rising volume of uncredited pension contributions, which often result from incomplete or incorrect employer documentation. These discrepancies, PenCom warned, could jeopardize employees’ retirement benefits if left unresolved.
The automated system integrates with PenCom’s central database, ensuring that only compliant contributions—those with matching RSA Personal Identification Numbers (PINs) and Pension Fund Administrator (PFA) codes—are processed. It also introduces real-time error detection protocols, significantly reducing delays caused by back-and-forth corrections between employers and pension operators.
Key Features and Compliance Deadline
Employers are required to register with one of the nine approved PSSPs and upload their contribution schedules via their chosen platform. Once validated, payments can be made instantly through multiple online channels—all at no additional cost to employers.
To facilitate the transition, PenCom has released a detailed manual outlining the registration, data submission, and payment confirmation process. A compliance deadline of June 1 has been set, after which all employers must adopt the new system to ensure pension contributions are remitted via PenCom-approved PSSPs.
“From this date, all employers are required to adopt the new process and ensure that their pension contributions are remitted through the PSSPs approved by PenCom,” the commission stated.
Strengthening the Contributory Pension Scheme (CPS)
Established under the Pension Reform Act, the CPS mandates monthly pension contributions from both employers and employees, with funds managed by licensed PFAs. However, delays in fund transfers and inaccurate remittance schedules have historically posed challenges to effective implementation.
PenCom has reaffirmed its commitment to expanding the number of approved PSSPs that meet regulatory standards and has urged all employers to transition to the automated system promptly to uphold the integrity of workers’ pension contributions.
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