The National Pension Commission (PenCom) has introduced a new digital platform designed to automate pension contribution remittances and address ongoing issues with crediting employees’ Retirement Savings Accounts (RSAs).
In a statement on Thursday, PenCom announced the launch of the Pension Contribution Remittance System (PCRS), developed in collaboration with the Pension Operators’ Association of Nigeria (PenOp). The system aims to enhance transparency, minimize errors, and improve compliance within the Contributory Pension Scheme (CPS).
How the New System Works
Under the new system, all pension contributions must be processed through approved Payment Solution Service Providers (PSSPs). These providers will validate employee details before crediting funds to their respective RSAs.
The initiative comes in response to the increasing number of uncredited pension contributions held by Pension Fund Administrators (PFAs) a situation often caused by incomplete or incorrect employer documentation. PenCom warned that such discrepancies could put employees’ retirement benefits at risk.
By integrating directly with PenCom’s database, the PCRS ensures that only compliant remittances with matching RSA Personal Identification Numbers (PINs) and PFA codes are processed. It also features real-time error-checking, reducing delays caused by back-and-forth corrections between employers and pension operators.
Mandatory Compliance Deadline: June 1
Employers are now required to register with one of the nine approved PSSPs and submit their contribution schedules through the selected platform. Once validated, payments can be made instantly via various online channels.
To ease the transition, PenCom has provided a step-by-step manual guiding employers on registration, data submission, and payment confirmation. The commission has set June 1, 2025, as the deadline for full compliance.
“From this date, all employers must adopt the new process and ensure that pension contributions are remitted through the PSSPs approved by PenCom,” the statement read.
Addressing Pension Contribution Challenges
The Contributory Pension Scheme (CPS), established under the Pension Reform Act, mandates monthly contributions from both employers and employees into RSAs managed by licensed PFAs. However, implementation has been plagued by delays and inaccurate remittance schedules—issues that the new system aims to resolve.
PenCom assured that it remains open to approving additional PSSPs that meet regulatory standards and urged all employers to migrate promptly to protect workers’ pension contributions.
Source: News Agency of Nigeria (NAN).
