Any Pension Fund Administrators (PFA) who convinces or induces Retirement Savings Account (RSA) holders or employees to transfer his or her account from one PFA to another will have such erring entities barred from the pension industry transfer window, says the National Pension Commission (PenCom).
In a circular titled: PenCom/INSP/SURV/Aut/2025/1013; dated 16 June 2025 and entitled; ‘Illegal and Unethical Practices Regarding Opening of Retirement Savings Account (RSA) and Retirement Savings.’
Account Transfer, sent to all Licensed Pension Fund Operators And Employers, said, defaulting PFAs can only participate as a transferring PFA and not a receiver as there would also be criminal prosecution for any employer or individual infringing on employees’ statutory rights to choose their PFA or transfer their RSA, contrary to the provisions of the PRA 2014 and relevant extant subsidiary legislations issued by the Commission.
The regulator said, it has observed with concern, the illegal and unethical practices by certain financial institutions and employers, where their employees and that of their vendors are being coerced or unduly influenced to open or transfer their Retirement Savings Accounts (RSAs) with specific Pension Fund Administrators (PFAs).
