Chat with us
You are here: Home Benefits Retirement Tips

Rules of General Application

An employee may access his/her RSA when he/she ceases to make further contributions into the RSA as a result of Mandatory, Compulsory or Voluntary retirement, as well as retirement on medical grounds and temporary loss of job.

Also, authorized beneficiaries of any employee who dies or declared missing while in active service are allowed to access the total fund balance standing in the RSA of the deceased or the missing employee. Note that access to benefits of a missing employee would be after one year of declaring the RSA holder missing.


MANDATORY RETIREMENT: This is shall be when an employee disengages from active service at the retirement age or completion of the length of service based on the terms of his/her employment, after attaining the age of 50 years.


COMPULSORY RETIREMENT: This shall be when an employee disengages from active service in accordance with the terms and conditions of service, before attaining the age of 50 years.

Note: An RSA holder shall, within six (6) months to his/her mandatory or compulsory retirement, notify the PFA of the impending retirement.


RETIREMENT ON MEDICAL GROUNDS: This is when an employee disengages from active service based on the advice of a suitably qualified physician or medical board certifying that the employee is not mentally or physically capable of working either due to permanent disability of the body or of the mind.

In line with the National Pension Commission’s regulations on retirement benefit payments, Retirees on Mandatory, Compulsory or Medical grounds may receive retirement benefit as Enbloc payment, where the balance in the retirees’ account is N550, 000.00 or less; while those with RSA balances of above N550, 000.00 are entitled to a Lump Sum payment (optional) and the remaining balance on a periodic payment either as Programmed Withdrawal or Annuity depending on the choice of the Retiree.


TEMPORARY LOSS OF JOB (Disengagement, Dismissal or Termination before age 50) – This is when an employee who registered under the Scheme is disengaged from active service before the attainment of age 50. This category of Retirement Savings Account holders can only access up to 25% of the balance in their RSA 4 months after disengagement, provided the RSA holders have not secured another employment.

However, the remaining balance can only be accessed after the RSA holder attains age 50 through a Lump Sum and Programmed Withdrawal or Annuity. It is important to state that 25% temporal Lump sum payment of the RSA balance can only be accessed once.


DECEASED/MISSING PERSONS: If a Retirement Savings Account holder is deceased, the beneficiary or any other person(s) named in a WILL duly admitted to probate or Letter of Administration issued by a Court of competent jurisdiction; where the deceased died intestate, will be entitled to the total RSA balance of the deceased RSA holder.

Also, If a Retirement Savings Account holder has been declared missing for a period of 1 year or more with sufficient proof of search –Newspaper paper publication and Police report as well as investigations conducted at various levels and board of enquiries, the beneficiary or any other person directed by a Court of competent jurisdiction will be entitled to the customer’s RSA balance upon submission of a WILL admitted to Probate or Letter of Administration and other requirements.


FOREIGNER: An expatriate (non- Nigerian National) can access the total balance standing in the Retirement Savings Account (RSA) when relocating to his/her country.


PROGRAMMED WITHDRAWAL:This is a method by which a retiree collects his / her pension in periodic sums spread throughout the length of an estimated life span. The periodic payment can be monthly or quarterly and in the event of his/her untimely death, the balance in the RSA is paid to the retiree’s beneficiaries. Also, where there is a waiting period between the employee’s retirement and the date of accessing benefits, arrears of pension would be paid for the waiting period together with a Lump Sum upon receipt of approval from The National Pension Commission (PenCom).


ANNUITY:This is a regular pension payment made to a retiree (called an Annuitant) for the rest of his/her life. It is paid either on a monthly or quarterly basis as long as the retiree lives. An Annuity is initially payable for ten (10) years (which is the guaranteed period) and thereafter until the death of the Annuitant. In the event of the Annuitant’s untimely death after the guaranteed period, the payments cease. If the Annuitant passes on before the expiration of the guaranteed period, the Insurance Company will pay for the period left to the end of the guaranteed period of ten (10) years.

Was this Content helpful?
Click Here
Email Address:

How was your experience with this page?

Share your comments about this page:

Thursday August 17, 2017
RSA Fund
Retiree Fund
RSA Admin fee

Subscribe to our mailing list

* indicates required