The National Pension Commission (PenCom), in its commitment to enhancing access and service quality for pension contributors, has mandated Pension Fund Administrators (PFAs) to establish additional branches and service centres nationwide.
PenCom in a revised circular on the Operations of Branch Offices and Service Centres by Licenced PFAs, said “this aims to ensure greater presence of LPFAs across the Country, in order to meet the increasing demand for pension services by the public”
It is also to ensure more efficient service delivery by LPFAs, to RSA holders.
Key requirements of the new guidelines for opening branch offices and service centres mandate that a PFA is required to open a Branch Office in any State where it has up to 10,000 funded Retirement Savings Accounts (RSAs).
Secondly, a PFA shall in addition to above, be required to open at least one Service Centre in a different location within the State where it has up to20, 000 funded RSAs.
Others are, “notwithstanding to both above, a PFA shall open a Service Centre in a State where it has up to 2, 000 funded RSAs; A PFA managing RSAs of employees of State Governments that are implementing the Contributory Pension Scheme shall open a Service Centre where it has up to 1,000 funded RSAs; The Lead PFA managing the Contributory Defined Benefits Scheme of a State Government, shall open a Branch Office in the State Capital.
Notwithstanding all the above, every PFA shall have Branch Offices in, at least, two States in each geo-political Zone of the Country.
The circular said, “the commission has observed the need for greater presence of Licenced Pension Fund Administrators (LPFAs) across the Country in order to meet the increasing demand for pension services by the public. The Commission has also observed the need for more efficient service delivery by PFAs at their Branches, the statement read.
“To address this issue, the Commission has issued new minimum requirements for the operation of Branch Offices as well as Service Centres which were not covered under the previous Circular issued by the Commission in this regard.
The Circular on the Operations of Branch Offices and Service Centres by LPFAs, is to give effect to the provisions of Section 72 of the PRA 2014 which provides that “subject to the approval of the Commission, a Pension Fund Administrator or Pension Fund Custodian may open or close any of its branch offices anywhere within or outside Nigeria”.
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