PenCom issues new guidelines on PFA branches, service centres

The National Pension Commission (PenCom) has issued a new circular on how Licenced Pension Fund Administrators should operate their branches and service centres to meet the increased demand for pension services.

According to the circular issued on Monday evening, PenCom said the move was aimed at ensuring more efficient service delivery by PFAs at their branches and service centres.

The Pension Reform Act 2004 established the National Pension Commission as the body to regulate, supervise and ensure the effective administration of pension matters in Nigeria. The functions of the Commission include: Regulation and supervision of the Scheme established under the Act.

PenCom said, “The objectives of this circular are to: i. Ensure greater presence of LPFAs across the country, in order to meet the increasing demand for pension services by the public, and ii. Ensure more efficient service delivery by LPFAs, to RSA holders.”

Based on the circular, a PFA will be “required to open a branch office in any state where it has up to 10,000 funded Retirement Savings Accounts, ii. A PFA shall in addition to (i) above, be required to open at least one Service Centre in a different location within the State where it has up to 20,000 funded RSAs. iii. Notwithstanding (i) and (ii) above, a PFA shall open a Service Centre in a State where it has up to 2,000 funded RSAs.

“iv. A PFA managing RSAs of employees of State Governments that are implementing the Contributory Pension Scheme shall open a Service Centre where it has up to 1000 funded RSAs. v. The Lead PFA managing the Contributory Defined Benefits Scheme of a State Government, shall open a Branch Office in the State Capital. vi. Notwithstanding (i) (ii) (iii (iv) & (iv) above, every PFA shall have Branch Offices in, at least, two States in each geo-political Zone of the country.”

Both the branch offices and the service centres are expected to provide registration and enrollment of contributors, records updates, and collection of contribution schedules, amongst others.