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Only 9,103,653 workers have Retirement Savings Accounts with PFA… PenCom

Only 9,103,653 workers had Retirement Savings Accounts with Pension Fund Administrators by the end of August 2020, according to the National Pension Commission.

PenCom  disclosed this in a report titled ‘Total RSA registrations as at 31 August 2020’, which was released on Friday.

“The RSA registrations grew to 9,039,727 as at second quarter 2020, moving from 8,998,580 in the first quarter 2020, representing a growth of 0.46 per cent,” the report said. ‎

The growth in RSA registrations was attributed to the increased level of compliance by the private sector as a result of the various steps taken by the commission as well as marketing strategies of the PFAs.

The report said the pension industry recorded a 0.45 per cent growth (41,074) in the scheme membership during the second quarter of 2020, moving from 9.06 million contributors at the end of the preceding quarter to 9.1million.

According to PenCom, the growth in the industry membership was driven by the RSA scheme, which had an increase of 41,147 contributors representing 0.46 per cent.

However, membership of the Closed Pension Fund Administration scheme declined by 73 members to 17,125 while the Approved Existing Scheme membership remained unchanged at 40,951 as at the second quarter of 2020.

During the quarter under review, the PFAs registered a total of 2,839 contributors under the Micro Pension Plan for whom a total of N7.4m had been remitted to the RSAs as pension contributions.

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Cumulatively, a total of 51,974 informal sector workers had registered for the MPP and contributed the sum of N42.1m as of 30 June 2020.

The report added that during the quarter under review, 5,100 private sector organisations applied for issuance of Pension Clearance Certificate out of which 4,937 were processed and issued PCCs while 163 applications were turned down due to non-remittance of pension contributions for the appropriate period and/or non-provision of Group Life Insurance Policy.

The 4,937 organisations that were issued certificates remitted the sum of N19.39m into the RSAs of 67,692 employees.

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