PENCOM Introduces Policy for Faster Benefit Payments! Here are the key points to note

From June 1, 2025, PFA’s no longer need PenCom’s approval before processing & disbursing benefits.

1. PFAs must process eligible applications within 2 working days once all documents are received.
2. PFCs must ensure payment of approved benefits within 24 hours of getting PFAs’ instructions.
3. RSA holders should submit retirement documents at least 6 months before retirement for smooth processing.

NB:

• PFA (Pension Fund Administrator) – Manages and administers pension funds on behalf of employees.
• PFC (Pension Fund Custodian) – Usually banks, hold pension funds in custody and ensures payments are made as instructed by PFAs.
• RSA (Retirement Savings Account) – An individual pension account where monthly contributions are saved for retirement.