The National Pension Commission (PenCom) has issued a directive mandating the provision of Bank Verification Numbers (BVN) for all Retirement Savings Account (RSA) registrations and data recapture processes.
According to a circular dated January 9, 2025, and released on Thursday, this directive is aimed at enhancing the security and integrity of the pension industry database. The regulation will come into effect on February 1, 2025.
The Head of the Surveillance Department, A.M. Saleem, signed the circular.
The circular read, “The National Pension Commission (PenCom) hereby directs that all Pension Fund Administrators (PFAs) must require the mandatory provision of the Bank Verification Number (BVN) from individuals/RSA holders in processing their requests for RSA Registration or Data Recapture, as applicable.
“This directive aims to enhance the security and integrity of the pension industry database.”
Key requirements of the directive
According to the circular, all licensed Pension Fund Administrators (PFAs) are required to ensure strict compliance with the following:
- BVN validation: PFAs must validate that the BVN provided for RSA registrations and data recapture processes contains the correct 11 digits.
- RSA registration: All new RSA registrations must include the BVN of the individual. PFAs are further directed to indicate that the BVN field on RSA registration forms is mandatory for successful processing.
- Data recapture: Existing RSA holders must provide their BVN during the data recapture process. PFAs are required to update their forms to clearly indicate the mandatory BVN field.
Provision for existing records
For individuals whose BVN details are not currently available on the Enhanced Contributor Registration System (ECRS), PenCom has assured that provisions will be made for PFAs to update these records prior to the implementation of the circular.
This measure aims to ensure a smooth transition to the new requirements.
The circular explicitly states that it supersedes certain provisions of the Revised Guideline on Retirement Savings Account Registration (2024), specifically Sections 2.2.1 (15) and 5.3.6 (16). This move highlights PenCom’s commitment to modernising its processes and bolstering security within the pension system.
This initiative is part of PenCom’s broader effort to improve the security and integrity of the pension industry database. By mandating the inclusion of BVNs, the Commission aims to reduce the risks associated with identity fraud, streamline RSA management, and ensure better alignment with Nigeria’s financial system regulations.
Revised documentation requirements for RSA registration
In a different circular also signed by A.M Saleem, Head of the Surveillance Department, PenCom has revised its documentation requirements for Retirement Savings Account (RSA) registration to simplify the process for formal sector employees.
This change, outlined in a circular dated January 8, 2025, addresses challenges faced by Pension Fund Administrators (PFAs) in obtaining Letters of Employment from new employees.
The updated requirements align with amendments introduced during the Data Recapture Exercise and are aimed at easing the burden on RSA holders and administrators. PenCom emphasised that these revised guidelines take immediate effect, superseding the provisions of Section 4.1.2 of the Revised Guideline on Retirement Savings Account Registration of 2024.
Under the new guidelines, employees in the private sector and public sector self-funded agencies must provide either a Letter of Employment, a Letter of Appointment, or a Staff Identity Card.
For public sector treasury-funded agencies and police personnel, a Letter of First Appointment, an Attestation Letter, or a Staff Identity Card is required.
In cases where a Letter of Employment or Appointment is provided, alternative means of identification, such as a Staff Identity Card, National Driver’s License, Permanent Voter’s Card (PVC), or International Passport, may be used.
However, if a Staff Identity Card is provided as part of the primary documentation, the need for additional identification is waived.
Additional requirements include a National Identity Card or Enrolment Slip issued by the National Identity Management Commission (NIMC), indicating the employee’s National Identification Number (NIN).
PenCom has also given PFAs the discretion to request other documentation as necessary and indicated that further requirements may be specified by the Commission in the future.
These measures aim to enhance flexibility and address the practical challenges employees and PFAs encounter during the registration process.
