The National Pension Commission (PenCom) has introduced a new automated Pension Contribution Remittance System aimed at improving the accuracy, efficiency, and transparency of pension contributions into employees’ Retirement Savings Accounts (RSAs).
Developed in collaboration with the Pension Operators’ Association of Nigeria (PenOp), this initiative is designed to address long-standing issues related to uncredited pension contributions and delays in verification processes.
Under the new system, all employers are mandated to remit pension contributions through approved Payment Solution Service Providers (PSSPs). These providers will verify employees’ Personal Identification Numbers (PINs) and Pension Fund Administrators (PFAs) with PenCom’s database before processing payments, ensuring that pension contributions are correctly credited.
PenCom has raised concerns over the increasing volume of uncredited pension contributions, often caused by incomplete or incorrect employer documentation. Such discrepancies prevent PFAs from crediting employees’ RSAs, potentially disrupting their retirement plans.
With full automation, the new system is expected to eliminate errors in contribution schedules and minimize administrative delays between employers and pension administrators. PenCom has emphasized that strict adherence to this new process is crucial for maintaining a robust and reliable Contributory Pension Scheme (CPS).
Key Benefits of the Pension Contribution Remittance System
Error Prevention Mechanisms: The platform includes protocols that prevent inaccuracies in uploaded remittance schedules, reducing discrepancies between reported contributions and actual payments.
Seamless Validation Process: Employee PINs and PFAs are verified with PenCom’s database before processing, ensuring only compliant remittances proceed, thereby reducing administrative bottlenecks.
Flexible Payment Provider Options: Employers can choose from multiple approved PSSPs based on service, speed, and accessibility preferences.
Instant Online Payment Options: The remittance platforms of these PSSPs support various payment methods, enabling employers to make real-time online payments for timely contributions to employees’ RSAs.
No Additional Costs to Employers: The implementation of this system comes at no extra cost to employers, making compliance easier and more efficient.
Employers can now choose from the following approved Payment Solution Service Providers:
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
INTERSWITCH by Interswitch Group
To integrate the new remittance system, employers must; Select a PSSP based on operational needs, register on the Platform, prepare and upload remittance schedules, validate employee information as well as initiate and confirm payments for compliance and audit purposes.
PenCom has set June 1, 2025, as the deadline for all employers to fully transition to this new remittance process. After this date, all pension contributions must be processed exclusively through the approved PSSPs. The Commission has also indicated that additional PSSPs may be approved in the future to further enhance accessibility and efficiency.
With this development, PenCom and PenOp are taking decisive steps to modernize pension administration in Nigeria, ensuring greater accountability, efficiency, and seamless pension contribution management.
