BY NKECHI NAECHE-ESEZOBOR—The National Pension Commission (PenCom) has directed all licensed Pension Fund Administrators (PFAs) to obtain informed consent from eligible retirees seeking possible enrolment in its PenCare Initiative during the processing of their retirement benefits.

The directive, contained in a circular signed by A. M. Saleem, Director, Surveillance Department, to all licensed PFAs, requires pension operators to obtain retirees’ consent at the point they execute their Programmed Withdrawal Agreement. The commission noted that the directive takes immediate effect.

According to the Commission, the PenCare Initiative was established in collaboration with Licensed Pension Fund Operators (LPFOs) to improve access to quality healthcare services for eligible retirees under the Contributory Pension Scheme (CPS).

The initiative is designed to facilitate healthcare coverage for eligible retirees in line with the eligibility criteria approved by the Commission.

PenCom explained that the standardised consent process was approved to enhance the timely identification and enrolment of eligible retirees, eliminate delays associated with obtaining consent after retirement benefits have been processed, establish a uniform industry-wide procedure and improve the quality and completeness of enrolment records.

Under the new directive, every PFA is required to obtain the informed consent of eligible retirees who elect Programmed Withdrawal at the time they execute their retirement agreement.

The Commission specified that consent must be obtained using the standard PenCare Consent Form prescribed by PenCom. The form must be completed separately and must not form part of, or alter, the Programmed Withdrawal Agreement.

However, PenCom emphasised that the execution of the Programmed Withdrawal Agreement must not be made conditional upon a retiree agreeing to participate in the PenCare Initiative.

It further stated that a retiree’s decision to decline participation in the initiative must not affect the processing or payment of his or her retirement benefits.

To ensure that retirees make informed decisions, PenCom directed PFAs to explain the purpose of the PenCare Initiative before requesting consent and ensure that participation is voluntary, without coercion or undue influence.

The pension operators are also required to obtain retirees’ signatures on the prescribed consent forms and retain the signed documents as part of their retirement benefit records.

In addition, PFAs must maintain appropriate records of retirees who consent to participate in the initiative and those who decline. They are also required to submit information on consenting retirees to the Commission in the format and at the frequency prescribed by the regulator.

On data privacy, PenCom directed PFAs to ensure that personal information collected under the circular is processed solely for determining eligibility and facilitating enrolment into the PenCare Initiative.

The Commission further stated that such information must not be disclosed to third parties except where authorised by PenCom or required by law.

It also mandated pension operators to handle all personal information in accordance with the Nigeria Data Protection Act, 2023, the General Application and Implementation Directive (GAID), 2025, and other applicable laws and regulations issued by the Nigeria Data Protection Commission.

Regarding record keeping, PFAs are required to retain all executed PenCare Consent Forms as part of retirees’ retirement benefit documentation and make the records available to PenCom during routine or special supervisory examinations or upon request.

PenCom said it would monitor compliance with the circular through its routine supervisory and examination activities.

The Commission warned that failure to comply with the provisions of the circular may attract appropriate regulatory action in accordance with the Pension Reform Act 2014 and other applicable regulatory instruments.

PenCom also directed that all inquiries regarding the circular should be forwarded to the Head, Benefits and Insurance Department.

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