PenCom directs PFAs to obtain retirees’ consent for PenCare enrolment

Nike Popoola

The National Pension Commission (PenCom) has directed all licensed Pension Fund Administrators (PFAs) to obtain informed consent from eligible retirees seeking to participate in its PenCare Initiative during the processing of their retirement benefits.

The directive, contained in a circular dated October 26, 2026, with reference number PenCom/TECH/B&I/2026/354, is aimed at facilitating the timely identification and enrolment of eligible retirees into the healthcare initiative under the Contributory Pension Scheme (CPS). The circular, signed by A. M. Saleem, Director, Surveillance Department, takes immediate effect.

The circular, titled Obtaining Retirees’ Consent for Enrolment into the PenCare Initiative During Programmed Withdrawal Retirement Benefit Processing, establishes a standardised process for securing retirees’ consent at the point of retirement benefit processing.

PenCom explained that the PenCare Initiative was established in collaboration with Licensed Pension Fund Operators (LPFOs) to improve access to quality healthcare services for eligible retirees under the CPS.

According to the Commission, the new arrangement is designed to eliminate delays associated with obtaining retirees’ consent after their retirement benefits have been processed, establish a uniform industry-wide consent process and improve the quality and completeness of enrolment records.

Under the directive, every PFA is required to obtain the informed consent of eligible retirees who elect Programmed Withdrawal at the time they execute their Programmed Withdrawal Agreement.

The Commission specified that consent must be obtained using the standard PenCare Consent Form prescribed by PenCom. The form must be completed as a separate document and must not form part of, or alter, the Programmed Withdrawal Agreement.

Importantly, PenCom emphasised that execution of the Programmed Withdrawal Agreement must not be made conditional upon a retiree agreeing to participate in the PenCare Initiative.

It further stated that a retiree’s decision to decline participation in the initiative must not affect the processing or payment of his or her retirement benefits.

To ensure compliance and protect retirees’ interests, the Commission directed PFAs to explain the purpose of the PenCare Initiative before requesting consent and ensure that participation is voluntary, without coercion or undue influence.

PFAs are also required to obtain retirees’ signatures on the prescribed consent forms, retain the signed documents as part of their retirement benefit records and maintain appropriate records of retirees who accept or decline participation.

Additionally, the pension operators must submit information on retirees who consent to the initiative to PenCom in the format and at the frequency prescribed by the regulator.

The circular also places obligations on PFAs regarding the protection of retirees’ personal information.

PenCom directed that personal information collected under the arrangement must be processed solely for determining eligibility and facilitating enrolment into the PenCare Initiative. Such information must not be disclosed to third parties except as authorised by the Commission or required by law.

The Commission further required PFAs to handle all personal information in accordance with the Nigeria Data Protection Act 2023, the General Application and Implementation Directive (GAID) 2025 and other applicable data protection regulations.

On record keeping, PFAs are required to retain all executed PenCare Consent Forms as part of retirees’ retirement benefit documentation. The records must be made available to PenCom during routine supervisory examinations or upon request.

PenCom said it would monitor compliance with the circular through its routine supervisory and examination activities, warning that failure to comply could attract appropriate regulatory action in accordance with the Pension Reform Act 2014 and other applicable regulatory instruments.

The directive represents a step towards integrating healthcare access into retirement planning under the Contributory Pension Scheme, while ensuring that eligible retirees are properly informed and their participation remains voluntary.