What is the Contributory Pension Scheme (CPS)?
The Contributory Pension Scheme (CPS) which commenced in 2004 is fully funded, privately managed, with third party in custody of the funds and assets and is based on individual accounts. It ensures that everyone who has worked receives his/her retirement benefits as and when due
Is CPS backed by any Government Regulation?
The scheme is backed by the Pension Act 2004.
What regulatory body supervises this scheme?
The National Pension Commission regulates and supervises the CPS. This body is also responsible for licensing and regulating the activities of Pension Fund Administrators (PFA) and Pension Fund Custodians (PFC), as well as overseeing the all policies and guidelines connected to Pension Matters.
Is Contributory Pension Scheme (CPS) mandatory for every worker?
The scheme is mandatory for employees of the Federal Government, the FCT and Private sector employers with more than three employees.
How do I participate in the Scheme?
As an employee or contributor, you are required to open a Retirement Savings Account (RSA) with any of the Licensed Pension Fund Administrators (PFA) where you remit your monthly contributions.
How do I participate in the Scheme?
Once you have your RSA, you would contribute 8% of your monthly emolument while your employer would make an additional contribution of 10% into your RSA.
Can I contribute more than the requested 8%?
Yes you can. It is called Voluntary contributions.
What if my employer deducts my contribution of 8% but fails to remit to my RSA?
The Pension Act demands that such employer would pay a penalty of 2% for every month of default once the case is reported to and verified by PENCOM.
What does the PFA do with my contributions?
The PFA invests your contributions in accordance with the guidelines of PENCOM. Proceeds from such investments will be credited to your RSA.
How do I contact my PFA?
You may contact us via any of our communication channels. Call us on 08165722731, 08139882060 or send us an email at email@example.com
How do I monitor my Savings?
Besides receiving SMS alerts on remittances into your account, Your PFA sends periodic statements to your specified address. You may also obtain login details from your PFA for online statements.
Is it possible for me to change my PFA?
Under the Pension Reform Act 2014, an employee or contributor is allowed to move his RSA from one PFA to another once in a year only without having to tender reasons for the change. However, this window is managed and will soon be opened by PENCOM.
When can I start to withdraw money from my RSA?
Withdrawals are permitted upon retirement. If you retire at 50years old and above, or you had to retire below 50years old due to physical and mental incapacity, you would have access to withdrawals from your RSA. However, if you are below 50years old and you resign or are disengaged from your employment, you would be allowed to withdraw from your RSA only after 4 months of being unable to secure an employment.
What are the charges on my RSA?
Under the current regulation, a maximum monthly charge of NGN100 and N5 VAT for every monthly contribution. Kindly note that PFA Charges for the services provided on the RSA are determined by the guidelines as provided by PENCOM per time.
As an intending Client, is my biometrics required?
Yes. The use of Fingerprint Identification System (biometrics) for RSA holder’s identification by PENCOM is soon to commence.
Can a PIN be generated for an RSA holder without an Employer Code?
No. The Employer code must be obtained before a PIN can be generated.
What are the requirements for generating Employer Code?
The required documents include: Copy of CAC certificates, Tax Identification Number (TIN), Company's Business Address and Nature of Business
Can an employer choose to bear full responsibility of the contributions to the scheme?
Yes. Where an employer chooses to bear the full responsibility of the Scheme, the employer contribution shall not be less than 20 percent of the monthly emolument of the employee.
Are pension contributions taxable?
All interest, dividends, profits, investment and other income accruable to pension fund and amount payable as a retirement benefit shall not be taxed.
In an event of death, how would my beneficiaries access my savings and what documents are needed?
Below are the following documents that would be needed:
- Letter of Administration issued from high court/enrolment order/will admitted to probate stating the legal beneficiary/beneficiaries.
- Medical certificate of the cause of death issued by a certified physician.
- Certificate of death registration obtained from National population commission
- Letter of introduction from deceased employer stating the date of death/birth ,it should also introduce the next of kin.
Do I need to check through the employer payment schedule to confirm my Personal Identification Number (PIN) and the total amount on the schedule before forwarding same to Operations for confirmation?
Yes. This will reduce the processing time of your request.
Can I make payments into our RSA Account without first generating PINs for the clients?
No. This practice is not in compliance with standard operational procedure.
Do I need to forward a soft copy version of schedules to Operations?
Yes. This will reduce the time for credit processing.
Do I need to specify Surname, First name and Middle name on the RSA form?
Yes. It is required to identify the RSA Holder.
Must I provide my mobile number on the RSA form?
Yes. It is required for seamless communication
Why do I need to include my Agent Code on the RSA form?
It is to aid the smooth processing of your request.
Can I update my records in the database after signing-on?
Yes. All information pertaining to a RSA holder can be updated in the database. Upon meeting documentation requirements, you can update your Date of Birth.
Can I make Voluntary Contribution while my employer is not making the mandatory contribution?
Yes. You can make voluntary contribution to your RSA account even while your employer is not paying the mandatory pension contribution portion.
How do I download spreadsheet for payment schedule?
You can call any of the phone numbers on our website for the required assistance.
Can I make withdrawals before my retirement?
Yes you can. Below are the criteria that you have to meet for you to be able to withdraw before retirement:
- If you are below 50 years old, you must be off an employment for a minimum of four months.
- You can withdraw additional voluntary contribution after two years of contribution.
How can I retrieve my IEI Anchor Pension number?
You can call any of the phone numbers on our website, and we will respond to you accordingly.