BY NGOZI ONYEAKUSI

The National Pension Commission (PenCom) has officially launched a new Pension Contribution Remittance System, a platform designed to optimise the process of remitting pension contributions into employees’ Retirement Savings Accounts (RSAs). This system, developed in collaboration with the Pension Operators’ Association of Nigeria (PenOp), has deployed approved Payment Solution Service Providers (PSSPs) to enhance accuracy, efficiency, and transparency in pension contributions.
The introduction of the Pension Contribution Remittance System is a response to the challenges frequently encountered by employers, including errors in contribution schedules and verification delays.
In the past, PenCom identified a challenge of uncredited pension contributions, primarily due to incomplete documentation from employers, which resulted in Pension Fund Administrators (PFAs) being unable to credit the RSAs of affected employees.
In a recent statement, PenCom expressed concerns about the growing pile of uncredited pension contributions in PFAs’ accounts. The Commission called for strict compliance from employers and contributors to address this matter promptly. The inability of PFAs to credit employees’ RSAs could potentially affect their retirement plans. As a result, it is critical to act quickly to correct the situation.
By completely automating pension remittance processes, PenCom and PenOp have taken significant steps towards creating a more robust Contributory Pension Scheme (CPS) for employers and employees, solving the challenge of uncredited pension contributions in the accounts of PFAs. By this development, all employers are to channel all pension contributions through the approved PSSPs, who then validate the PFAs and Personal Identification Numbers (PINs) of the RSA holders with PenCom’s database to eliminate errors, which led to uncredited pension contributions.

Key Features of the New System:
1. Error Prevention Mechanisms: The system is equipped with protocols that ensure uploaded remittance schedules are free of inaccuracies, which have historically led to discrepancies between reported contributions and actual payments.
2. Seamless Validation Process: A significant feature of the system entails verifying employee PINs and PFAs with PenCom, only allowing compliant remittances to proceed. This considerably reduces administrative back-and-forth between employers and pension authorities.
3. Convenient Access to Payment Providers: Employers now have the flexibility to select from multiple approved PSSPs, enhancing their choice according to preferences for service, speed, and accessibility. Approved PSSPs so far are 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, ENCO by Gemspay Solutions Limited, AWABAH by Awabah Remit Services Limited, PCOSS by Nigeria Inter-bank Settlement systems Plc and INTERSWITCH by Interswitch group.
4. Instant Online Payment Options: The Remittance Platforms of these PSSPs support various payment methods, enabling employers to make immediate online payments, thus facilitating timely contributions to employees’ RSAs.
5. No Costs to Employers: The implementation of the system comes at no cost to employers, making it an economically viable option that promotes greater compliance and efficiency.

Guide for Employers
To ease the shift to this new system, PenCom has outlined a comprehensive, user-friendly guide that employers can follow:
1. Select a Payment Solution Service Provider (PSSP): Employers should begin by reviewing the list of approved providers and selecting one that meets their operational needs.
2. Register on the Chosen Platform: Visit the website of the selected PSSP to create an employer profile. This step includes submitting necessary business details and any relevant documentation.
3. Prepare and Upload Employee Remittance Schedule: Employers need to prepare their pension remittance schedule, ensuring employee information, including names and RSA PINs, are accurate and upload to the PSSP’s platform for processing.
4. Automatic Validation of Employee Information: Once uploaded, the system automatically crosschecks employee details against PenCom’s database, flagging discrepancies. It is crucial for employers to resolve these issues before finalising their submissions.
5. Payment Initiation and Confirmation: After successful validation, employers can initiate payment through the platform. Upon completion, they will receive confirmation of their remittance, which they can retain for compliance records and audits.

PenCom has set June 1, 2025 as the deadline for adopting this new remittance process. From this date onwards, employers are to channel all pension contributions through the approved PSSPs. PenCom remains open to approving additional PSSPs that meet specified criteria in the future. This move demonstrates PenCom’s commitment to continuously improving the CPS and ensuring accessibility for employers across Nigeria.
As the Pension Contribution Remittance System rolls out, PenCom is optimistic that it will lead to a more transparent, efficient, and error-free process for pension contributions. Employers are encouraged to adopt these changes promptly to ensure compliance and preserve the integrity of their employees’ pension contributions.