The Nigerian Pension Commission has now opened the Retirement Savings Account (RSA) transfer window which makes it possible for you to change your Pension Fund Administrator in line with Section 13 of Pension Reform Act, 2014.
Here are 3 factors to consider when changing your Pension Fund Administrator as you are only allowed to change once in twelve months.
Rate of Return on Investments
The Pension Commission operates a multi-fund structure which allows the splitting of the RSA ‘Active’ fund into 3 different funds; Fund 1, Fund 2, Fund 3 and the ‘Retiree’ fund called Fund 4.
Most working employees belong to the Fund 2 and Fund 3. When your monthly pension contribution is remitted to the PFA, it is the duty of the PFA to invest the contributions wisely within set criteria to get the best returns.
Your accumulated retirement savings account balance is dependent on how well your PFA invests your contributions. So in considering which PFA to move to, you must see from past performance, which PFA have been consistent in providing the best return of investments.
The current rates of return for all companies and funds is listed here.
Customer Service
It is good to deal with a company who places a great value on customer service. Some companies do not bother about customer service because they believe that the contributions are mandatory so employees have no choice.
Look out for a PFA that has different customer service channels – phone, email, social media and physical office locations. You should be able to reach your PFA online and offline.
This factor is also very evident when you reach the age of retirement or when you need to get some money from your pension. It can take from 2 weeks to 3 months.
Management Expertise
It is very important to consider the expertise and experience of the PFA. This helps to ensure that the professionalism required to manage the company is not in doubt.
It is advisable to do an independent investigation by going to the website of your chosen PFA to know the Board of Directors and Management Team.
Choosing the right PFA will determine how much you have when you want to retire. So choose well.
