PFAs urge pension contributors to update their data
PFAs
By Chidinma Agu
Lagos, May 31, 2018 (NAN) Contributors to the National Pension Scheme have been urged to update their personal data with their Pension Fund Administrators (PFAs) and prepare a will in case of death.
Officials of some of the PFAs gave the advice at an interactive session with workers of the News Agency of Nigeria (NAN) on Thursday in Lagos.
According to them, the data update will remove delay in processing their retirement payments, while the will ensures ease of payment of their entitlements to their beneficiaries in the event of death.
Mr Muslim Idowu, Business Controller and Relationship Management, NLPC Pension Fund Administrators, said the Pension Act did not permit the PFAs to disclose details of Retirement Saving Account (RSA) to a third party.
“It is only the RSA holder that has access and right to know the details of his or her account.
“The CPS was structured in a way that no other person has to know a holder’s account details.
“Also, in the event of the death of an RSA holder, it is only a legal document that states the beneficiary that will permit the PFAs to disclose such to the person named as the beneficiary.
“That is why we always advice contributors to endeavour to have a will, so that transaction with the beneficiary will be easy after his or her death,” he said.
Mrs Olanike Ajetunmobi, Regional Manager, IBTC Stanbic Pension Fund Administrators, said the contributors should know that next-of-kin was not the same as the beneficiary.
“The personal data of majority of CPS contributors need to be updated.
“So many things have changed in the lives of contributors from the day they joined the scheme to date.
“It is always necessary to inform your PFAs of such changes and regularise your profile. It is necessary also for the contributors to know that next-of-kin is different from beneficiary.
“In the event that the account holder is no more, it is only a legal document stating the beneficiary that will be used to pay whatever the account holders is entitled to,” she said.
According to Ajetunmobi, the next-of-kin can be the beneficiary if the same name is used in the will.
Mr Olawale Olagokan, Business Development Manager, Sigma Pensions, said that it was the duty of the account holder to ensure that the personal data with PFAs were correct.
“The account holders’ date of birth filled in PFAs forms should be the same with the one with the employers and the declaration of age or birth certificate.
“We have these discrepancies every time and it delays payment of the lump sum that comes as gratuity when the account holder retires from service.
“The issue of having a will is also important for any holder that wants to make his beneficiaries comfortable after his or her death.
“Without a will, the beneficiaries have to go through the hurdle of going to court to get a testament of estate which takes time and delays payment.
“This means that the RSA account holder has given the government the right to determine who benefits from his access through the courts and it is not always easy for the beneficiaries,” he said.
According to Olagokan, the PFAs work with laid down regulations and guidelines as provided in the Pension Acts and regulated by Pension Commission. (NAN)
ACA/ENN/SA
Edited by Edwin Nwachukwu/Salif Atojoko
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