National Pension Commission (PenCom) has mandated Pension Fund Administrators (PFAs) and Fund Custodians (PFCs) to approve and pay pension benefits to eligible applicants within three working days of receiving applications from them.

The pension watchdog also said effective from 1st June 2025, PFAs will no longer be required to seek approval or obtain a “No Objection” from PenCom before processing and disbursing benefits, including programmed withdrawal, retiree life annuity, and temporary loss of employment benefits, among others.

PFAs are mandated to process and approve eligible benefit applications within two working days of receiving all required documentation, while Pension Fund Custodians (PFCs) must ensure payment of the approved benefits within 24 hours of receiving instructions from the PFAs,” the commission said in a circular that was released yesterday.

PenCom said the policy initiative is aimed at expediting the payment of benefits to Retirement Savings Account (RSA) holders.

The new move is part of ongoing efforts to enhance operational efficiency and service delivery, as outlined in the circular on approval of benefits to holders of retirement savings accounts by licensed pension fund operators, dated 12 March 2025.

However, PenCom said PFAs must continue to submit requests for approval to the commission regarding depleted RSAs and death benefit applications, in accordance with Section 8 (2) of the Pension Reform Act 2014.

“PenCom will continue to monitor the implementation of this policy through its regulatory technology platforms and other supervisory mechanisms to ensure full compliance,” the commission said in the circular.

Prior to this directive, PFAs were required to review, process, and forward all benefit payment applications to the Commission for approval before the appointed PFCs could credit beneficiaries’ accounts. This new policy is designed to streamline the benefit payment process, significantly reducing delays and improving access to entitlements for retirees and other RSA holders.

In line with its regulatory and supervisory mandate, PenCom said it will continue to conduct reviews of transactions processed by PFAs to ensure compliance with applicable regulations.

The commission promised to apply appropriate regulatory measures where necessary to uphold transparency, accountability, and the integrity of the pension system.

RSA holders were also reminded that timely submission of the necessary documentation to their PFAs is crucial for seamless access to benefits.

It advised prospective retirees to submit all relevant documents at least six months before retirement. According to the circular, all benefit applications must be supported by the documentation prescribed in the commission’s regulations and guidelines. (LEADERSHIP)