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General FAQs

Where my employer fails to make monthly remittances for me what can I do?
The enforcement task force of National Pension Commission has the responsibility of ensuring that defaulting employers are sanctioned. The Task force can be contacted directly or through the PFA.

How do I monitor my RSA contributions?
An SMS that indicates your balance will be sent to your phone whenever there is a transaction on your RSA. Leadway Pensure PFA will also send quarterly statements of account to you by email and through your mailing address. Also, you can monitor 24/7 by visiting our website.

What happens to my RSA and contributions when I change employers?
The RSA belongs to you and therefore a change in employer does not affect it as it is transferrable from one employer to another. For your pension remittance to continue, please inform your new employer of your pension details including your RSA number (PENCOM PIN), the name of your PFA and PFC details. It is very important that you inform the PFA whenever your details change to enable your records to be updated on our database.

What happens to my contributions made under the Nigeria Social Insurance Trust Fund (NSITF)?
The Pension Reform Act 2004 mandates that contributions made to NSITF should be transferred 5 years after the commencement of the new pension scheme, to your Pension Fund Administrator (PFA). To ensure the transfer of your NSITF contributions, you are required to submit through your PFA, a completed NSITF transfer application form, your original NSITF certificate and a means of identification. Where there is no original certificate; the member would provide the following alongside the application form to the PFA; a sworn court affidavit (if your certificate is missing) and a letter of indemnity/identification from your employer.

How safe are my contributions?
The scheme is a highly regulated one with checks and balances in place and clear cut investment portfolio options that are designed to ensure the safety of the funds. With a clear cut demarcation of the administration of the funds by the Pension Fund Administrator (PFA), the actual custody of the funds by the Pension Fund Custodian (PFC) and the regulation and supervision by the regulator, PENCOM, your contributions are very safe.

Who is Leadway Pensure's primary PFC for the RSA Fund?
UBA Pensions Custodian Limited.

What happens to my contributions if I travel outside the country?
Your remittance continues if you have not reached retirement age. You could also continue to fund the account voluntarily, provided the foreign country's pension regulator permits transfer of your contributions.

FAQs on Contributions

How does the new pension scheme work?
The scheme is a contributory pension scheme initiated by the Federal Government. The scheme requires the employer and employee to contribute a minimum total of 18% of the employee's monthly emoluments to a Retirement Savings Account (RSA) to be managed by a private sector Pension Fund Administrator (PFA). The component of the emolument is basic salary, housing and transport allowances. This monthly contribution shall be remitted by the employer every month into the employee's Retirement Savings Account specifically opened with the PFA for this purpose.

What are the benefits of the scheme to workers?
It ensures that the worker receives his or her benefits as and when due. In addition, it enables the employee to save and ensures a steady income during retirement. Strict regulations by National Pension Commission (PENCOM) guarantee the safety and security of the funds by PFAs and PFCs.

Who is eligible to join the scheme?
This scheme is mandatory for every person who works in either the Public Service of the Federation or Federal Capital Territory and Private Sector organizations with 5 or more employees as well as the informal sector.

What are the contribution payments?
The employee and the employer contribute a total of 18% of the employee's monthly emoluments. (i.e. 10% employer and 8% employee, except for military personnel where the contribution rate is 12.5% and 2.5% respectively). The minimum that the employer can pay is 10%. The employer can undertake to pay a higher percentage or even the total 18%.

Can I contribute more than the mandatory contribution to the PFA?
Yes, you can. Contributions above the mandatory contributions are called Additional Voluntary contribution (AVC) and are deducted from source by employers.

Is there a limit to my voluntary contribution?
Yes, it must not be more than your salary and must be contributed via payroll.

Would I be able to collect my voluntary contribution at any point in time?
Yes you can, it would only be taxed if you collect it before 5 years.

How do I pay my contribution?
Your employer pays a percentage of your monthly emolument on your behalf to your chosen PFA.

How much do i pay as administration processing fee?
One hundred and five naira only (N=105.00) inclusive of 5% VAT.

FAQs on About To Retire

What do you mean by preferred mode of Payment?
A programmed monthly or quarterly pension benefits withdrawal/payment.

Does the scheme allow a retiree to withdraw the balance of the RSA at once?
No! A lump sum from the balance of the retirement savings account may be withdrawn, provided the amount remaining after the lump sum withdrawal shall be sufficient to procure an annuity or fund programmed withdrawals.

How else can I access my benefits from the scheme apart from going through the Programmed Withdrawal?
A purchase of annuity for life through a licensed life insurance company with monthly or quarterly payments.

What are the benefits of the scheme to retirees?
It ensures that the retiree receives his or her benefits as and when due. In addition, it enables the retiree to have a steady income during retirement.

At what time is the fund beneficial to me?
It is beneficial to the employee when he or she gets to the age of 50 years or retires (whichever is later) or in case of physical disabilities or prolonged unemployment.

What happens to the Pension fund or RSA upon death?
The beneficiary (ies) of the employee as stated in a Will (or letter of administration in the absence of a Will) admitted to Probate, becomes the beneficiary (ies) of the benefits in the RSA.

Can I borrow from the balance in my RSA?
No! The Pension Reform Act specifically prohibits this.

What is going to happen to previous contributions to NSITF?
Funds contributed by any person to the NSITF shall be computed and credited to the Retirement Savings Account of the contributor in his present PFA five years from commencement of the scheme.

How do I know what returns are made on my Retirement Savings Account?
These are provided in quarterly statements and can be calculated by the growth in the unit price over the period.

Are PFAs going to handle the administration of retirement benefit differently?
The National Pension Commission has established a uniform set of rules and regulations for the administration and payment of retirement benefits in both the public and private sectors.

Who pays my Gratuity?
The PFAs in New Pension Scheme do not pay Gratuity, however the retiree is entitle to a Lump sum payment, from the balance standing to the credit of his retirement savings account at retirement.

What percentage of my RSA can I withdraw as lump sum at retirement?
A retiree is entitled to the statutory 25% of the RSA balance as a lump sum but however, a retiree may also be able to withdraw up to 50% provided the amount remaining after the lump sum withdrawal shall be sufficient to pay his or her pension i.e. procure an annuity or fund programmed withdrawal.

What day of the Month is My Pension Payment Due?
Your monthly Pension payment is due on 24th of every month.

How do I follow-up on the Status of My Retirement Saving Account at Retirement?
A retiree must be issued a quarterly statement of account. The retiree can also access information on the retirement savings account via the internet or contact the Pension fund administrator for, update at any given period within the expected due date for a statement of account.

What happens to the balance standing to the retirement savings account at death?
The balance on the retirement savings account and the interest accrued shall be paid en bloc to the beneficiary (ies) of the deceased retiree, as represented in the Will or Letter of Administration.

Can I change my Next of Kin at retirement?
Yes.

Can I receive my monthly pension payment by cheque directly?
No. Your bank account as designated by your good-self shall be credited by the Pension Fund Custodian on a monthly basis.

FAQs on Retiree Fund

What day of the month is my Pension payment due?
Your monthly Pension payment is due on 24th of every month.

Why is my monthly Pension delayed?
The following are likely reasons for the delay;

  • Technical Issues; or
  • Interbank tranaction issues

How do I know what returns are made on my Retirement Savings Account?
These are provided in quarterly statements and can be calculated by the growth in the unit price over the period.

How do I follow-up on the Status of My Retirement Saving Account at Retirement?
A retiree must be issued a quarterly statement of account. The retiree can also access information on the retirement savings account via the internet or contact the Pension fund administrator for update at any given period within the expected due date for a statement of account.

I don’t receive the quarterly statement of account?
This could be as a result of the following;

  • Change of contact/postal address, without informing us, leads to undelivered statement of account.
  • No detailed postal/contact address.

Why did I not get 50% of my RSA balance at retirement, like some of my colleagues did?
The computation of the lump sum and periodic pension (monthly or quarterly) is based on a standard programmed withdrawal template issued by the commission. The variables that determine the minimum and maximum lump sum includes retirement savings account (RSA) balance; last annual total emolument; age at retirement; amongst other variables.

What happens to the interest on my RSA?
The interest accrued upon investment as guaranteed, is added to the balance of the RSA and shown on the statement of account of every retiree.

What happens to the balance standing to the retirement savings account at death?
The balance on the retirement savings account and the interest accrued shall be paid en bloc to the beneficiary (ies) of the deceased retiree, as represented in the Will or Letter of Administration.

What is going to happen to previous contributions to NSITF?
Funds contributed by any person to the NSITF shall be computed and credited to the Retirement Savings Account of the contributor in his present PFA five years from commencement of the scheme.

Why is there a need for a Will, since we have already filled a beneficiary election form with LPPFA?
The National Pension Commission has made it mandatory that, only the Will or a letter of Administration, on benefit payment on the RSA; can give access to the deceased beneficiary (ies).

Can I borrow from the balance in my RSA?
No! The Pension Reform Act 2004 specifically prohibits this.

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DAILY FUND PRICE MOVEMENT
Thursday August 17, 2017
RSA Fund
2.8049
Retiree Fund
2.5659
RSA Admin fee
100

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