The National Pension Commission (PenCom) has announced June 1, 2025 as the deadline for employers to fully adopt its new pension remittance system.
The initiative aims to enhance the efficiency, accuracy, and transparency of pension contributions into employees’ Retirement Savings Accounts (RSAs).
PenCom disclosed the launch of the pension contribution remittance system in a statement issued in Abuja.
The platform, developed in collaboration with the Pension Operators’ Association of Nigeria (PenOp), is designed to address longstanding issues related to uncredited pension contributions and verification delays in the accounts of Pension Fund Administrators (PFAs).
“The initiative aims to resolve long-standing issues related to uncredited pension contributions and verification delays in the accounts of Pension Fund Administrators (PFAs),” the commission stated.
Backstory
Nairametrics reported that PenCom approved nine Payment Solution Service Providers (PSSPs), to facilitate seamless pension contribution remittances.
- The approved providers include Paypen by Netline Limited, Pencentral by Chamsaccess Limited, Pensphere (formerly Paythru) by Pethahiah Rehoboth Int’l Limited, Penremit by Cyberspace Limited, Pensol by Uniswitch Technology Limited, Penco by Gemspay Solutions Limited, Awabah by Awabah Remit Services Limited, Epcoss by Nigeria Inter-bank Settlement Systems Plc, and Interswitch by Interswitch Group.
- This system allows employers to upload pension schedules and make payments online at no additional cost, ensuring transparency and accuracy in pension administration.
As part of this shift, the commission has transitioned to an online Pension Contribution Remittance System (PCRS), replacing manual pension remittances to improve efficiency
Step-by-step guide for employers
The step-by-step guide for employers to select and use a Payment Solution Service Provider (PSSP) for pension remittance are:
- Employers must first choose a PSSP from the approved list provided by PenCom. Each provider has a dedicated website where employers can register and process transactions.
- After selecting a PSSP, employers need to visit the provider’s website and create an employer profile. They must submit the necessary details to complete the registration process.
- Employers must prepare the pension remittance schedule, ensuring accuracy in employee details such as names and RSA Personal Identification Numbers (PINs). Once prepared, the schedule should be uploaded onto the platform for validation.
- The system automatically verifies employees’ PINs and Pension Fund Administrators (PFAs) with PenCom before processing remittances. Employers must ensure that any errors or discrepancies are corrected before submission.
- After validation, employers can initiate payments through the platform using the available payment options. Once the transaction is completed, they should obtain confirmation of successful remittance and retain records for compliance and future reference.
Addressing inefficiencies and errors
The commission emphasized that the new system integrates approved Payment Solution Service Providers (PSSPs) to optimize the remittance process. It noted that the move was necessary due to persistent challenges faced by employers, including errors in contribution schedules and delays in verification.
“These issues resulted in uncredited pension contributions, which pose a risk to employees’ retirement savings,” PenCom stated.
- Employers and contributors have been urged to comply strictly with the new framework to prevent further accumulation of funds that are yet to be allocated to employees’ RSAs.
- According to PenCom, the deployment of PSSPs will enable the automatic validation of PFAs and RSA holders’ Personal Identification Numbers (PINs) against its database. This mechanism is expected to eliminate errors that previously led to delays in crediting pension contributions.
“The inability of PFAs to credit employees’ accounts due to incorrect or incomplete information has been a major concern, and urgent action is required to rectify the situation,” the statement noted.
A major cause of uncredited contributions in the past was incomplete documentation from employers, which prevented PFAs from correctly processing the funds.
The new system incorporates mechanisms to prevent errors in uploaded remittance schedules, reducing discrepancies between reported contributions and actual payments.
