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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 retirement, compulsory retirement, retirement on medical grounds, and death.

  • Mandatory retirement 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 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.
  • Retirement on medical grounds 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 no longer mentally or physically capable of carrying out the functions of his/her office.
  • Due to total or permanent disability either of mind or body.

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

The retirement benefit is categorized in accordance with the Customers’ respective sector of employment i.e. Public or Private sector.

In addition retirees from State Public Services shall be guided by any other specific requirement of the law enacting their individual state pension schemes.

In line with the National Pension Commission’s regulations on retirement benefit payments, a retiree is entitled to a lumpsum (optional) and the remaining balance can be accessed in two ways based on choice of the retiree. These are Programmed Withdrawal or Annuity:

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 delay in payment, the arrears of monthly payment will be paid to the retiree together with the lump sum, once approval is received from PenCom.

ANNUITY:This is a regular pension payment made to a retiree (called an Annuitant) for the rest of his/her life. It can be paid monthly or quarterly 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 will 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.

 

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DAILY FUND PRICE MOVEMENT
Friday June 23, 2017
RSA Fund
2.7357
Retiree Fund
2.5223
RSA Admin fee
100

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