The National Pension Commission (PenCom) directive to accelerate the payment of benefits to pensioners under the contributory pension scheme begins on June 1, 2025.
Effective June 1, pension fund administrators will no longer require prior approval from PenCom before disbursing benefits, including programmed withdrawals, retiree life annuity, and temporary loss of employment benefits to beneficiaries.
This initiative aims to streamline the process and minimize delays in benefit payments.
However, pension fund administrators must still seek approval for payments related to depleted retirement savings accounts and death benefits.
This will allow pension fund administrators to process and approve eligible benefit applications within two working days of receiving all necessary documentation.
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Furthermore, pension fund custodians must ensure the disbursement of approved benefits within 24 hours of receiving instructions from pension fund administrators.
According to PenCom, it will monitor the process through technological platforms and regulatory mechanisms to ensure compliance.
Also, PenCom said it has inaugurated the pension industry non-interest advisory committee to introduce investment options that align with ethical and religious principles while ensuring competitive returns for contributors.
