RSAs transfer over N227bn between PFAs since inception in 2020

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*** PenCom marks two years of RSA transfer window
By Favour Nnabugwu
Retired Saving Accounts, RSA, owners have been able to pull out over  N227 billion between the Pension Fund Administrators, PFAs by 78,821 RSAs as National Pension Commission, PenCom marks two years of it
RSA Transfer is the transfer of an individual’s Retirement Savings Account (RSA) from one Pension Fund Administrator (PFA) to another, processed through the RSA Transfer System (RTS).
Since inception of the RSA transfer window, a total of 78,549 RSAs have transferred accounts from one PFA to another, pulling out a grand total of N227,200,170.318.02 from November 16, 2020 to September 30, 2022.
Even as PenCom marks the second anniversary of the rollout of RSA Transfer window, the main goal of the RSA Transfer Window is to allow RSA holders the right to transfer their accounts from their existing Pension Fund Administrators (PFAs) to other PFAs of their choosing as provided by Section 13 of the Pension Reform Act (PRA) 2014.
In the second quarter of 2022, 14, 821 RSAs moved N50, 218,505,218.53 form one PFA to another.

Specifically, section 13 of the Pension Reform Act (PRA) 2014, states that a Retirement Savings Account (RSA) Holder may transfer his RSA from one Pension Fund Administrator (PFA) to another. It also specifies that such transfer should not be more than once a year.

The RSA transfer window, between November 2020 and December 2021 has enabled over 50,000 contributors to switch to their preferred PFA. This has increased the competition in the industry, as PFAs are forced to best themselves by printing impressive ROIs and improving their consumer experience in order to ensure customer retention.

In terms of transfer eligibility, Only recaptured RSA holders and those who registered after June 2019 can transfer their RSAs. Active contributors and retirees on Programmed Withdrawal can transfer their RSAs. Retirees who are receiving an annuity and making voluntary contributions can also transfer their RSAs. 

Furthermore, RSA holders can only make subsequent RSA transfers 365 days after the effective date of their last RSA transfer.

Director-General of PenCom, Mrs Sishat Dahiru-Umar said the Data Recapturing Exercise, DRE is necessary before transfer of RSAs.

According to her, “The DRE is of immense benefit to the RSA holder, as it will facilitate the payment of retirement benefits to RSA holders and transfer by RSA holders from one PFA to another”

Dahiru-Umar further stated, “The  DRE would also allow RSA holders to amend incorrect personal details earlier submitted to PFAs and assist the commission in identifying and eliminating multiple RSA registrations from the contributors registration system (CRS) database”.

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