PenCom Unveils New System To End Cases Of Uncredited Pension Contributions

Oluwakemi Kindness

The National Pension Commission (PenCom) has officially launched its new Pension Contribution Remittance System, a platform designed to optimize the process of remitting pension contributions into employees’ Retirement Savings Accounts (RSAs).

This system, developed in collaboration with the Pension Operators’ Association of Nigeria (PenOp), has deployed approved Payment Solution Service Providers (PSSPs) to enhance accuracy, efficiency, and transparency in pension contributions.

The introduction of the Pension Contribution Remittance System according to PenCom management is a response to the challenges frequently encountered by employers, including errors in contribution schedules and verification delays.

In the past, PenCom identified a challenge of uncredited pension contributions, primarily due to incomplete documentation from employers, which resulted in Pension Fund Administrators (PFAs) being unable to credit the RSAs of affected employees.

A statement on Thursday by PenCom says key Features of the New System, includes Error Prevention Mechanisms, Seamless Validation Process, Convenient Access to Payment Providers, Instant Online Payment Options, No Costs to Employers.

In a recent statement, PenCom expressed concerns about the growing pile of uncredited pension contributions in PFAs’ accounts.

“The Commission called for strict compliance from employers and contributors to address this matter promptly. The inability of PFAs to credit employees’ RSAs could potentially affect their retirement plans. As a result, it is critical to act quickly to correct the situation”.

PenCom has now set June 1, 2025 as the deadline for adopting this new remittance process, saying from this date onwards, employers are to channel all pension contributions through the approved PSSPs.

Meanwhile, PenCom remains open to approving additional PSSPs that meet specified criteria in the future. This move demonstrates PenCom’s commitment to continuously improving the CPS and ensuring accessibility for employers across Nigeria.

“As the Pension Contribution Remittance System rolls out, PenCom is optimistic that it will lead to a more transparent, efficient, and error-free process for pension contributions. Employers are encouraged to adopt these changes promptly to ensure compliance and preserve the integrity of their employees’ pension contributions”.