Skip to main content

PenCom unveils Pension Contribution Remittance System to End Uncredited Pension Contributions

By Afolabi Oyekunle.




PenCom unveils Pension Contribution Remittance System to End Uncredited Pension Contributions


The National Pension Commission (PenCom) has officially launched its 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.

                PenCom DG Omolola Oloworaran 

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: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.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.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. 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.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: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. 



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. 


 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. 

Comments

Post a Comment

Popular posts from this blog

PenCom urges Lagos State Governor to extend periodic pension increase to retirees under CPS, as Sanwoolu welcomes the idea.

By Afolabi Oyekunle. The National Pension Commission (PenCom)  has called on  the Lagos State Governor, Babajide Sanwo-Olu, to extend periodic pension increases currently enjoyed by Defined Benefit Scheme (DBS) retirees to those under the Contributory Pension Scheme (CPS) to boost their monthly pensions.  The Director General of PenCom, Ms. Omolola Oloworaran, made the request during a courtesy visit to Governor Sanwo-Olu at the Lagos State Government House on 7 May 2025. The visit was to present the report of PenCom’s 2024 routine inspection of the Lagos State Pension Commission (LASPEC) and to thank the Governor for confirming his participation as Special Guest at the Pension Industry Leadership Retreat starting 8 May 2025. PenCom DG pointed out that currently, only DBS retirees are paid pension increases in Lagos State, leaving out their counterparts under the CPS.   DG PenCom Ms Oloworaran with Gov Sanwoolu who presented her with Lagos State plaq...
Post a Comment
Read more

Table Water Producers decry multiple taxation say it could drive investors away

By Afolabi Oyekunle. T he World water day was celebrated in the World on March 22nd 2025, Nigeria was not left out as Association for Table Water Producers  held a symposium to mark the day. The symposium which was put together by the Association of Table Water Producers (ATWAP) of Nigeria, South West/Kwara zone, took place at St. Michael primary school, Ota, in Ogun State. The focus was on how to preserve mineral resources in production of water, with emphasis on GLACIER a key element in production of water. Picture  of some of the leaders of the Association.  Glaciers are vast masses of ice that form over centuries from accumulated snowfall. They are found in mountainous regions and polar areas, acting as essential reserv ors of fresh waters. However due to climate and human activities, glaciers are melting at an alarming rate, posing significant threat to water availability and human livelihoods. Leaders of the Association who spoke at the occasion were una...
Post a Comment
Read more

Association of Senior Civil Servants affirms Comrade Shehu Mohammed as National President.

By  Afolabi Oyekunle.  Association of Senior Civil Servants of Nigeria (ASCSN) has affirmed that Comrade Shehu Mohammed is its National President. In a Press Statement issued in Abuja today, (1st March, 2025), the ASCSN Secretary-General, Comrade Joshua Apebo emphasized that Comrade Shehu Mohammed was elected the National President of the Union on Monday 12th August 2024 with other members of the Central Working Committee (CWC) during the 5th Quadrennial National Delegates Conference of the Association held at Airport Hotel, Ikeja, Lagos. Comrade Shehu Mohammed in white caftan with cap to match with TUC leader in a picture after the election at Airport hotel. He explained that this followed the expiration of tenure of the former members of the Central Working Committee (CWC) on 29th July 2024 having been elected on 29th July 2020 during the 4th Quadrennial National Delegates Conference of the Union held at NAF Conference Centre, Abuja.  The Union recalled th...
Post a Comment
Read more