PenCom Insight: The necessity of data recapture by RSA holders

The National Pension Commission (PenCom) mandated retirement savings account (RSA) holders who joined the contributory pension scheme (CPS) on or before July 1, 2019, to undergo the data recapture exercise (DRE). The exercise, which covers active and retired RSA holders, commenced in August 2019.

The DRE became expedient because of the need to obtain RSA holders’ current, complete, and accurate data. Also, the DRE complies with the federal government’s directive that all data-generating organisations should harmonise their databases with the National Identity Management Commission (NIMC).

To facilitate the DRE, PenCom designed, developed, and deployed the enhanced contributor registration system (ECRS). It is used to authenticate the uniqueness of individuals seeking to register under the contributory pension scheme (CPS) and to update the records of existing RSA holders. The application has been integrated with the NIMC.

RSA holders in the public and private sectors and retirees must participate in the data recapture exercise to update their biodata and biometric (picture and signature) information.

CONSEQUENCES OF FAILING TO PARTICIPATE IN THE DRE

The implications of not participating in the DRE are numerous and capable of stalling access to the RSA. For instance, only RSA holders who have completed their data recapture can transfer their RSAs from their current PFA to another PFA. Contributors who are yet to be recaptured cannot access retirement benefits when they retire. Furthermore, temporary access to RSA for 25 percent of the RSA balance in the case of job loss is only available for RSA holders that have successfully recaptured their data.

RSA holders with multiple PINs who failed to recapture their data would face delays in resolving their situations. In addition, having numerous PINs would lead to incorrect remittances by employers and delay the payment of retirement benefits. Therefore, contributors with multiple RSA PINs must present all their RSA PINs to their PFA at the point of data recapture.

It is also important to point out that not participating in the DRE affects the ability of RSA holders to update registration records in the future. For instance, an RSA holder cannot make updates relating to a change of name (due to marriage), a change of employer, or a change of his next of kin (NOK). Thus, it is in the interest of the RSA holder to participate in the DRE to avoid undue delays in accessing services from PFAs.

DOCUMENTS REQUIRED FOR THE DRE

It is imperative to state that PenCom has directed all PFAs to issue acknowledgement slips to RSA holders who submit complete documents for their data recapture. The RSA holders are notified via text messages of the status of their data recapture (successful or not) within five working days of the submission of documents.

Active contributors should visit their PFAs and provide their staff identity card or any valid means of identification (national driver’s licence, permanent voter’s card, or international passport). In addition, they are to present their enrollment slip issued by NIMC and birth certificate or sworn affidavit of age declaration for the DRE.

Retirees on programmed withdrawal or annuity should present any valid means of identification (national driver’s licence, permanent voter’s card or international passport), enrollment slip issued by NIMC and letter of retirement issued by the employer to the retiree for the DRE.

Finally, RSA holders who have changed either their surnames or first names or both after registration should present the following to their PFA to be recaptured: Marriage Certificate (only applicable in the case of marriage); Newspaper publication for the change of name; and sworn affidavit and confirmation letter for change of name from employer (if still in employment).

To expedite the DRE, PenCom approved an industry-shared services initiative (SSI) proposed by the Pension Operators Association of Nigeria (PenOp). Under the initiative, PenOp engaged two agents, Payone Solution Systems Limited and Afritech Multi Concept Limited, to conduct the data recapture exercise on behalf of all PFAs. However, the contract between PenOp and the agents expires on May 30, 2023. Consequently, effective May 31, 2023, Payone Solution Systems Limited and Afritech Multi Concept Limited will no longer be authorised to conduct the DRE for RSA holders.

Therefore, PenCom urges RSA holders who are yet to be recaptured to visit the nearest branch of their PFAs to undergo the exercise.

Based on information by the National Pension Commission (PenCom)