PFAs battle for loyalty as 290,000 customers change managers

Pension Fund Administrators (PFAs) are in stiff competition to retain existing customers as about 290,000 contributors switched fund managers over five years.

Contributors seek higher returns and quality service from PFAs and often dump their under-performing managers during the pension transfer window approved by the National Pension Commission (PenCom),

Data from the National Pension Commission (PenCom) show that about 290,000 contributors, also called Retirement Savings Account (RSA) holders, have switched PFAs over the past five years, while N1.26 trillion have exchanged hands amongst the PFAs.

Returns on savings are a critical component of pensions that determine how the funds perform, making it a major consideration for participants, according to Paul Nnanna, a contributor.

Nnana said, “I look at my pensions regularly, and I feel happy when I see the increment in returns.

“With customers increasingly seeking better returns and superior service, PFAs must adapt quickly or risk losing market share. This shift underscores a growing demand for more personalised, transparent, and efficient management of retirement funds,” he said.

The transfer window is an integral part of the Contributory Pension Scheme (CPS), established under the Pension Reform Act of 2014. It was officially launched in November 2020 by the National Pension Commission (PenCom), which oversees and regulates the scheme.

Read also: PenCom pushes PFAs closer to contributors for better access

“By understanding and utilising this feature, contributors can make more informed decisions, leading to better management of their retirement funds and, ultimately, a more secure financial future,” according to analysts at Crusader Sterling Pensions.

Across the industry, PFAs are engaging and explaining to their contributors and potential customers, why they should remain with them, particularly for reasons of returns and flexibility in their service.

The PFAs now make PowerPoint presentations to their potential customers, showcasing their market prices, fund growth, and returns on their different funds, with a view to wooing them.

Michael Oyebola, an analyst at MoneyCouncillors, said the Pension Reform Act (PRA) 2014 allows employees to switch from one pension fund administrator (PFA) to another in a process known as ‘portability.’

Portability allows employees to move their pension savings from one PFA to another without losing any benefits or having to start a new pension plan, analysts say.

Oyebola said tracking the performance of one’s PFA is essential to ensuring that one’s retirement savings are growing optimally.

PFAs’ performance

Looking at the performance of the PFAs, Norrenberger Pensions took the lead in Fund 1 with 3.61 percent growth in January 2025, significantly outpacing competitors. Veritas Glanvills Pensions secured the second place with 2.89 percent, while PAL Pensions followed closely with 2.77 percent.

In Fund II, CrusaderSterling Pensions emerged as the leader, delivering 2.77 percent growth, the highest in the category. Tangerine APT Pensions followed with a solid performance of 2.33 percent, while Leadway Pensure PFA, Premium Pension and Trustfund Pensions recorded 2.24 percent, 2.24 percent and 2.23 percent respectively, rounding out the top performers.

In Fund III, CrusaderSterling Pensions led with a growth rate of 2.31 percent, surpassing all other PFAs. PAL Pensions followed with 2.02 percent growth, with Norrenberger Pensions securing third place at 1.86 percent.

In Fund IV, CrusaderSterling Pensions led the pack with a growth rate of 1.68 percent, showcasing strong portfolio management and investment strategies.

Access ARM Pensions and PAL Pensions followed closely with growth rates of 1.46 percent and 1.44 percent, respectively.

For Fund V, PAL Pensions and NLPC Pension tied for the top spot with growth rate of 2.50 percent each, while Trustfund Pensions followed with 2.07 percent.

The Non-Interest (Active) Fund VI have Nupemco as the top performer with an impressive growth of 4.17 percent, followed by Tangerine APT Pensions and CrusaderSterling Pensions with growth rates of 2.14 percent and 2.09 percent, respectively.

The Non-Interest (Retiree) Fund VI recorded a mixed performance across PFAs. Fidelity Pension Managers led the industry with a growth rate of 1.93 percent – above the average. Norrenberger Pensions and NLPC Pension followed with growth rates of 1.81 percent and 1.80 percent, respectively.