PenCom adopts technology to Enhance regulatory compliance, efficiency in pension industry

The National Pension Commission (PenCom) has emphasised its use of technology to enhance regulatory compliance and improve efficiency within the pension industry.

Speaking at the 2024 PenCom Media Conference held in Lagos, Omolola Oloworaran, Director-General, PenCom, highlighted the sector’s transformative impact of technology, focusing on the theme “Tech-Driven Transformation: Shaping the Pension Landscape.”

Oloworaran stated, “By integrating technology into various aspects of the pension industry—such as data and identity management, seamless contributions, investment oversight, regulatory supervision, and service delivery—we are paving the way for a future where the Contributory Pension Scheme (CPS) is more accessible, reliable, and sustainable.”

She explained that PenCom has made notable progress, with over 10.5 million contributors and pension assets exceeding N21.9 trillion. “This achievement highlights the strength of our contributory pension system, although challenges persist,” she pointed out.

The Director-General noted that inflation has been diminishing the purchasing power of pensioners and assured that PenCom is actively seeking innovative solutions to address this issue. “Since taking office, my team and I have focused on strengthening compliance, enhancing service delivery, diversifying pension assets to maximise returns, improving benefits, and expanding coverage to include more Nigerians, particularly those in the informal sector,” she explained.

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Oloworaran highlighted PenCom’s commitment to the micro-pension initiative: “It is our commitment to ensure that no one is left behind, no matter how small their earnings.” She underscored the vital role of technology in facilitating this inclusion through mobile enrollment, real-time account management, and benefit payments.

PenCom marked a significant achievement with the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October. This initiative replaces the older manual system, allowing companies to apply for and receive PCCs more easily online. Since its launch, over 38,000 PCCs have been issued, substantially improving compliance and making it easier to do business.

“The Pension Industry Shared Service Initiative is in advanced implementation stages. This initiative aims to digitise pension contributions and remittances, ensuring smooth processing and addressing issues caused by incomplete remittance details.
Oloworaran indicated that to improve contributors’ experiences, the commission has introduced a revised programme withdrawal template, simplified access to voluntary contributions, and revised the threshold for en-bloc payments in line with the new minimum wage. These initiatives aim to streamline the retirement process and prioritise users’ needs.