PenCom Accelerates RSA Withdrawals: Funds Now Accessible Within 3 Working Days

The National Pension Commission (PenCom) has issued a new directive mandating that Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) process and disburse eligible Retirement Savings Account (RSA) withdrawals within three working days upon receipt of complete applications. ​

New Circular Details

PenCom’s recent circular, dated March 12, 2025, aims to expedite RSA benefit payments. Starting June 1, 2025, PFAs will process and approve applications within two working days of receiving complete documentation. PFCs must then ensure payment within 24 hours of receiving instructions, effectively completing the process within three working days. Additionally, PFAs no longer need PenCom’s prior approval for benefits like programmed withdrawals and retiree life annuities, which could further reduce delays.

Key Highlights:

Swift Processing: PFAs and PFCs are now required to ensure that all necessary documentation is in order to facilitate prompt payment of pension benefits within the stipulated three-day timeframe.​

Enhanced Efficiency: This initiative aims to improve the efficiency of pension fund administrators and custodians in managing and disbursing retirement benefits, ensuring retirees receive their funds promptly.​

Beneficiary Impact: Pensioners can expect a more streamlined process, reducing waiting periods and enhancing their retirement experience.​

Potential Challenges and Uncertainties

While the circular promises efficiency, there are potential challenges:

Documentation Readiness: RSA holders must ensure all documents are complete to meet the tight timelines, which could be a barrier for some, especially those unfamiliar with the process.

System Capacity: PFAs and PFCs must upgrade their systems to handle the increased speed of processing, and any technical issues could delay payments.

Exceptions and Special Cases: The news articles do not mention exceptions, but it’s possible that certain complex cases (e.g., disputes over contributions) may still require additional time, though this is speculative without the official circular.

Final Thoughts

PenCom’s circular dated March 12, 2025, represents a transformative step in Nigeria’s pension system, promising RSA holders faster access to their benefits within three working days from June 1, 2025. By removing the need for prior approval and setting clear timelines for PFAs and PFCs, the policy enhances efficiency and customer satisfaction. However, RSA holders must prepare by ensuring complete documentation to meet the new deadlines. This change underscores PenCom’s commitment to modernizing pension administration, aligning with global best practices for timely service delivery.