• Sunday, July 21, 2024
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‘Commencement of pension transfer window to become clearer end of year’

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With huge capital involvement, data processing time, partnerships and the need to ensure an efficient system once it starts, the opening of pension transfer window under the contributory pension scheme would become clearer by the end of the year, Pension Fund Administration Association of Nigeria (PenOp) has said.

Transfer window is a mechanism which gives pension contributors the right to change their PFA at least one in a year if they have reason to do so.

The fund managers stated that though it is taking a long time to happen, it was in the interest of everyone both the operators and the contributors, but what is important and why it delaying is because we want to make sure that all loop holes are covered, particularly with respect to contributors’ data.

Ronke Adedeji, managing director, Leadway Pensure Limited backed by other executive committee of PenOp noted at a media chart after its Annual General Meeting in Lagos that what the transfer window needs is biometric to be able to have an effective system.

“Biometrics is the cruise of the matter and we are working towards it. There is one leg from PenOp and another le from PenCom. But what we have done eventually is to put our resources together and also in partnership with other agencies to get this thing done, Adedeji stated.

“If you recall what it has taking Nigeria to have a reliable national identity of the citizens and the disappointments that has followed it despite all the fund put in so far, you will realize that its huge task. But we are making sure we get right once and for all, and before the end of the year we will be more certain when it will commence,” Adedeji assured.

Dave Uduanu, chairman, PenOp who had confirmed the decision to go for biometric capturing said, the challenge facing data collection from contributors is more than what people are thinking.

According to him, the transfer window will not commence in a rush, as there is need to ensure that there is proper documentation of people’s details, and this is what we think biometric capturing will address.

Uduanu pointed out that “there are occasions when you find two or more retirees bearing the same name and so it becomes difficult for the Pension Fund Administrator to distinguish who is who. So with finger prints, you can be sure each person will have his own unique feature that cannot be found in a second person.”

We have seen where two or more PINs are funded at variance, and when it gets to retirement, the retiree meets in his account an amount less than he expects or have two or more accounts funded in his name, so all of these are what we are trying to resolve Uduanu noted.