CPS: PenCom May Allow Contributors to Change PFAs

• CPS: PenCom May Allow Contributors to Change PFAs

The National Pension Commission is working on how to open a transfer window that will enable workers with Retirement Savings Accounts under the Contributory Pension Scheme to change their Pension Fund Administrators.

When the window is opened, a contributor will be allowed to transfer his savings in his RSA to another PFA of his choice based on guidelines to be released by the commission.

The Director-General, Lagos State Pension Commission, Mrs. Folashade Onanuga, said this while enlightening retirees on the development under the CPS in Lagos.

“Arrangements are also in top gear by the National Pension Commission on the issue of minimum pension and the opening of the transfer window,” she said.

She educated the retirees on the two retirement options under the CPS and urged them to take time to decide between the programmed withdrawal and life annuity.

Onanuga said, “There are different types of life annuity arrangements. So, please request for advice from your annuity service provider if your choice is annuity plan.

“For those who wish to opt for the programmed withdrawal arrangement by the PFAs, I am happy to announce that one of the major concerns having to do with the fact that it would appear that pension received is static during the programmed withdrawal period has now been addressed. The National Pension Commission has released the template that allows all retirees under the programmed withdrawal arrangement to be eligible for increase in pension received based on the growth in funds under management.”

The director-general emphasised the need for pensioners to take very good care of themselves in old age.

She said, “Please, remember that health is wealth. Desist from frivolous spending and beware of pension fraudsters.”