EDITOR.
The National Pension Commission (PenCom) has indeed introduced a circular that allows people who want to withdraw from their Retirement Savings Accounts (RSAs) to be paid within a shorter timeframe. Starting from June 1, 2025, PenCom will no longer approve or grant “No Objections” to certain benefits applications before Pension Fund Administrators (PFAs) process them for payments.
This means that PFAs will be responsible for processing and paying out benefits within two working days after completing the necessary documentation. The Pension Fund Custodians (PFCs) will then effect payment into the beneficiaries’ accounts within 24 hours upon receipt of instructions from the PFA.
The benefits affected by this new directive include:
Programmed Withdrawal
Retire Life Annuity
Access to Benefits upon Temporary Loss of Employment
En Bloc Payments* to retirees whose RSA balances cannot provide a reasonable pension
Pre-Pension Reform Act Benefits Payments – to retirees in the Private Sector
Voluntary Contributions
Payments to RSA holders- towards payment of equity contributions for residential mortgages
This development aims to eradicate delays in payment of pension benefits to RSA holders and improve the overall efficiency of the pension administrative process.
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