The number of RSA contributors that switched pension administrators in Nigeria hit 12,681 in the first quarter of 2021 as against 2,799 recorded in the previous quarter (Q4 2020). This is according to the quarterly RSAs transfer summary, released by the National Pension Commission.
This represents a 353.1% increase compared to the previous quarter, which can be attributed to the dissatisfaction of pension contributors with the management of their contributions.
Recall that in November 2020, PENCOM opened the transfer window for contributors to be able to move freely from one PFA to another, at least once a year. Immediately it was opened, 2,799 RSA holders applied for transfers.
Meanwhile, Nigeria’s total pension assets under management recorded an increase of N33.81 billion in Q1 2021. It moved from N12.31 trillion recorded as of 31st December 2021 to N12.34 trillion at the end of March 2021.
According to PenCom and the code that governs pension accounts in Nigeria, transfer between PFAs is an event that happens once a year. This is an avenue for Nigerian pension contributors to evaluate the performance of their fund managers.
A related article by Nairametrics on the performance of the 22 Pension Fund Managers in the country, revealed that 81.25% of the total funds operated by the managers recorded growth in March 2021, while only 22% grew in the previous month (February).
A cursory look at the 2019 annual report of PENCOM, shows that Stanbic IBTC Pension Managers has the highest number of RSA holders (1.79 million), accounting for 20.2% of the total, followed by ARM Pension Managers with 801,673 and Trust Fund Pension Plc with 737,422 holders.
What you should know about RSA transfer
The transfer window was launched on November 16, 2020, to allow pension contributors switch from their current PFAs to a new PFA of their choice.
According to PENCOM, RSA transfers from one PFA to another shall be free of charge to the RSA Holder.
RSA Transfer System window has four quarters in a year – March 31, June 30, September 31, and December 31, in which contributors can change their PFAs once within the year.
An RSA Holder is only eligible for a subsequent RSA transfer after 365 days from the date of his/her last approved RSA transfer, irrespective of whether it is a leap year or not.
PFAs shall only process RSA transfer requests for eligible RSA Holders who have not transferred their RSAs within the last 365 days using the RTS, irrespective of whether it is a leap year or not.
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