Pension Fund Operators despite being the holders of the Pension Reform Act 2014 is contravening the law that allows their employees choose any PFA of their choice to manage their pension funds other than one that is their employer.
They are coercing their employees including vendors to open or transfer their Retirement Savings Accounts (RSAs) with specific Pension Fund Administrators (PFAs), particularly those directly affiliated with the employer or indirectly through custody of their pension assets with Pension Fund Custodians (PFCs).
To this end, the National Pension Commission has threatened criminal prosecution against any employer or individual infringing on employees’ statutory rights to choose their PFA or transfer their RSA.
The commission issued a warning circular to all licensed Pension Fund Operators And Employers in a circular dated June 16, 2025 and titled “Illegal And Unethical Practices Regarding Opening of RSA And RSA Transfer” and signed by Head, Surveillance Department, A. M. Saleem.
