The National Pension Commission has sped up the payment of retirement benefits as indicated in a new policy directive to licensed pension fund administrators.
According to the circular on Approval of Benefits to Holders of Retirement Savings Accounts by Licensed Pension Fund Operators, the changes were part of ongoing efforts to enhance operational efficiency and service delivery.
Before now, PFAs were required to review, process, and forward all benefit payment applications to the Commission for approval before the appointed PFCs could credit beneficiaries’ accounts.
In a statement accompanying the circular, the commission said that effective June 1, 2025, PFAs will no longer be required to seek approval or obtain a “No Objection” from PenCom before processing and disbursing benefits, including Programmed Withdrawal, Retiree Life Annuity, and Temporary Loss of Employment benefits, among others.
“However, PFAs must continue to submit requests for approval to the Commission regarding depleted RSAs and death benefit applications, in accordance with Section 8 (2) of the Pension Reform Act 2014.”
