National Pension Commission (PenCom) has formally launched the Retirement Savings Account Transfer System (RTS).
Speaking during the Virtual Launch of the RTS on Monday, Secretary to the Government of the Federation, Boss Mustapha, said the RSA transfer window was embedded in the Pension Reform Act (PRA) as far back as 2004, but was not implemented until now.
The transfer of RSAs is empowered by the provision of Section 13 of the PRA 2014, which allows a pension contributor or retiree to move his or her RSA from one Pension Fund Administrator (PFA) to another, provided that it is not more than once in a year.
According to Mustapha, the electronic platform, RTS, developed by PenCom, would facilitate the transfer of RSAs from one PFA to another once in a year.
Also speaking at the event, Director General, PenCom, Aisha Dahir-Umar, said the activation of the RSA transfer provision is a major milestone attained by the Commission in the implementation of the Contributory Pension Scheme (CPS), considering that it has been on the drawing board since the advent of the Pension Reform.
The PenCom boss disclosed that the commission had directed PFAs to increase performance disclosures to enable RSA holders make informed decisions.
Dahir-Umar said the commission was unable to embark on the full implementation of the RSA transfer policy due to challenges hitherto experienced in its contributor registration system.
“These challenges were largely hinged on technology, given that in the early days of the pension reform, contributor registration did not include a biometrics component,” she said.
The PenCom chief added that the transfer of RSAs from one PFA to another by RSA holders is all about enhancing individual choices.