PenCom, NAICOM issue fresh clarification on additional inflows into retirees’ pension accounts
NAICOM and PenCom
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The National Pension Commission (PenCom) and the National Insurance Commission (NAICOM) have jointly issued a circular clarifying how additional inflows into the Retirement Savings Accounts (RSAs) of retirees already on Retiree Life Annuity (RLA) should be treated.
The directive obtained by Dailyeconomy, which was contained in a circular referenced PenCom/NAICOM/JCIR/2025/002 and dated 3 November 2025, was addressed to all Licensed Pension Fund Operators and Retiree Life Annuity Providers. It followed numerous complaints from annuitants regarding the implementation of the provisions of the Revised Regulation on Retiree Life Annuity (RLA) 2020, particularly Paragraphs 5.1.22 to 5.1.24, which outline how additional remittances into retirees’ RSAs should be handled.
According to the joint clarification signed by Dr. Talmiz Usman, Director, Legal, Enforcement and Market Development at NAICOM, and A.M. Saleem, Director, Surveillance Department at PenCom, the two regulatory bodies deemed it necessary to issue the directive to ensure uniform compliance and protect retirees’ interests.
New Guidelines on Additional Inflows
Under the new guidelines, Pension Fund Administrators (PFAs) are required to notify retirees of any additional remittances into their RSAs.
For inflows not exceeding ₦100,000:
PFAs are to remit the entire amount directly into the retiree’s designated bank account.
For inflows above ₦100,000 where the retiree’s annuity is already up to 50% of their last salary:
The retiree will have the option to either receive the inflow as a lump sum payment or apply it as additional premium for the purchase of an extra annuity from their existing RLA provider.
For inflows above ₦100,000 where the retiree’s annuity is less than 50% of their last salary:
The PFA must require the retiree to apply the inflow, in whole or in part, as additional premium to raise the annuity up to the 50% threshold.
Any remaining balance, after meeting this benchmark, may be either paid to the retiree as a lump sum or used for further annuity purchase at the retiree’s discretion.
Strict Compliance Mandated
PenCom and NAICOM emphasized that all Pension Fund Operators and Retiree Life Annuity Providers must ensure immediate and strict compliance with the directive.
The circular also advised stakeholders to contact either regulatory body through their designated channels for further clarification.
The move is expected to enhance transparency and fairness in the management of retirees’ benefits under the Contributory Pension Scheme and to provide clearer guidance to operators on the treatment of post-retirement inflows.
