The National Pension Commission (PenCom) has reiterated that employees have the legal right to freely choose or change their Pension Fund Administrators (PFAs), and that no employer or operator should interfere with this decision.
In a circular issued to all licensed Pension Fund Operators, PenCom emphasized that Retirement Savings Account (RSA) holders must not be coerced, induced, or influenced in any form when selecting a PFA or transferring their account.
The choice of PFA and RSA transfer are statutory rights of RSA holders, PenCom stated. “Any attempt to influence this process, whether directly or indirectly undermines the integrity of the Contributory Pension Scheme (CPS).”
The statement, signed by A. M. Saleem, Head of Surveillance at PenCom, warned that any Licensed Pension Fund Operator (LPFO) or employer found violating this directive will face strict regulatory and legal actions.
🛑 Possible Penalties Include:
Monetary fines
Other sanctions as outlined in the current Regime of Sanctions and Penalties
PenCom’s directive comes amid rising concerns over unethical practices by some employers and operators who pressure workers into staying with specific PFAs, often linked to corporate interests.
The commission reminded all stakeholders that freedom of choice and transparency are critical to the credibility of Nigeria’s pension system, and any breach will not be taken lightly.
