By Bashir Olanrewaju
Nigerians currently operating retirement savings accounts can now switch pension fund administrators with effect from Nov. 16, according to the National Pension Commission.
“This will signify the official opening of the RSA transfer window,” Peter Aghahowa, a spokesman for the commission, said in a statement to reporters. “Prior to this launch, the commission had successfully developed the RSA transfer application, a robust electronic platform that would enable seamless transfers.”
The ability to switch administrators is part of the phased implementation of the new pension law that came into effect in 2014. Account owners can now change to another administrator if they’re not satisfied with the returns they’re getting or other aspects of the service, thereby stimulating competition.
Nigeria’s 22 pension fund administrators were managing assets valued at 10.2trillion naira as at May this year. The 2014 pension law requires every organization with more than three employees to institute a contributory pension plan.