How to Choose or Change Your Pension Fund Administrator (PFA) in Nigeria

Your Pension Fund Administrator (PFA) is one of the most important financial partners you’ll ever choose. The decisions they make today directly influence the quality of your life when you retire. Thankfully, under Nigeria’s Contributory Pension Scheme (CPS), you’re not stuck with one provider forever—you can choose your PFA when you start your career and even change your PFA once every year.

This guide simplifies the entire process so you can confidently decide where your retirement money should grow.

What PFAs Do — and Why Your Choice Matters

A Pension Fund Administrator (PFA) is responsible for managing your Retirement Savings Account (RSA). Their role includes:

• Investing your monthly contributions

• Keeping your account updated

• Sending you statements and notifications

• Processing your retirement benefits

• Providing support when you need information or clarification

In short, the PFA you choose determines how well your pension grows and how easy it will be to access your benefits later.

How to Choose the Right PFA in Nigeria

Not all PFAs are created equal. Use these criteria to compare your options:

1. Investment Performance (Most Important Factor)

Your pension should grow consistently—not aggressively, not sluggishly.
Compare PFAs across several years, focusing on the fund type that applies to you (Fund I–VI). Look for:

• Stability

• Long-term growth

• Risk-adjusted returns, not just “highest return this year”

A PFA with consistent performance will protect your retirement from inflation and market volatility.

2. Customer Service & Accessibility

As your career evolves, you’ll need a PFA that responds quickly and communicates clearly. Consider:

• Branch network

• Quality of phone/email support

• Online support efficiency

• Speed of resolving complaints

A responsive PFA = less frustration and faster problem resolution.

3. Digital Experience (Very Important in 2025)

You should be able to track your pension as easily as you track your bank account.
Evaluate:

• Mobile app features

• Website usability

• Real-time balance updates

• Ease of requesting statements

• Retirement simulations or growth calculators

A strong digital platform makes pension management stress-free.

4. Fees

Although PenCom regulates fees, some PFAs offer better value. Lower fees = higher long-term returns.

5. Management Track Record & Expertise

A strong, experienced leadership team is a good indicator of:

• Better investment decisions

• Stronger governance

• Reduced operational risks

Look at board and executive profiles where possible.

How to Change Your PFA 

Since 2021, PenCom has implemented the RSA Transfer System (RTS), allowing contributors to change their PFA once per calendar year. Here's how to change your PFA: 

Step 1: Complete Your Data Recapture (Mandatory)

Your current PFA must have your updated data, including:

• NIN

• Biometrics

• Updated contact details

Without this step, no transfer can be processed.

Step 2: Research and Choose a New PFA

This will be your “Receiving PFA.”
Compare performance, customer service quality, fees, and digital features.

Step 3: Visit Your New (Receiving) PFA to Initiate the Transfer

Transfers are started from the new PFA, not the old one.

Step 4: Submit Required Documents

Typically includes:

• Valid means of ID (NIN slip, passport, or driver’s licence)

• RSA PIN

• Completed transfer form

Step 5: Biometric Verification

Your fingerprint is matched with NIMC records.
This confirms your identity and prevents fraudulent transfers.

Step 6: Get Your Confirmation Slip

This is proof that your transfer request has been submitted successfully.

Step 7: Wait for Quarterly Transfer Processing

PenCom processes all transfers quarterly:

• March 31

• June 30

• September 30

• December 31

Your transfer will take effect in the next cycle.

Step 8: Notify Your Employer

Once the transfer is complete, tell your employer so they can begin sending new contributions to your updated RSA.

PFA Performance Comparison Table (2023–2024 / Fund II – Most Common RSA Fund)

Important Considerations 

Transfer Limitations: You can only transfer once per year. 
 
Quarterly Processing: Transfers are processed at the end of each quarter (March 31, June 30, September 30, and December 31). 
 
Public Sector Restrictions: Government employees should verify if their employer allows transfers to their chosen PFA, as some state governments restrict PFA options. 
 
Performance Tracking: Before changing your PFA, review the latest performance data published by PenCom or industry analysts. 

 Expert Tips for Making the Smart Choice

• Compare at least 3–5 PFAs before choosing

• Prioritise long-term fund performance (not hype)

• Choose PFAs with strong digital platforms

• Never ignore fees—they compound over time

• Review customer complaints on social media or review platforms

• Reassess your PFA every six months

Your pension is a 20–35 year commitment—choose wisely.

Conclusion 

Choosing your PFA or deciding to change your pension fund administrator is a significant decision that affects your financial security in retirement. By evaluating performance records, customer service quality, and accessibility, you can select the PFA that best aligns with your retirement goals. Remember that the transfer window system gives you flexibility to optimize your pension management, ensuring your retirement savings work harder for you. 

For more information on pension-related topics, visit the National Pension Commission website or consult directly with licensed PFAs.