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General FAQs (20)

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 cservice@ieianchorpensions.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.

My Retirement Savings Account (11)

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.

About My Retirement (10)

What RSA balance will qualify a retiree for Lump Sum?
A minimum RSA Balance of NGN550,000
What is the relationship between Monthly Pension and Lump Sum?
Monthly Pension & Lump Sum have an Inverse relationship. This means that the higher the monthly Pension, the lower the Lump Sum and vice-visa.
My colleague at the same grade/level has a higher lumpsum?
This is a possibility because Lump Sum & Programmed Withdrawal amount are determined by four (4) variables: Age at Retirement, RSA balance at Retirement, Gender and Annual Total Emolument (ATE).
Do I need to use the checklist in documenting an intending retiree?
Yes
Do I need to verify my Letter of Administration with the issuing Court before presenting it for processing?
Yes
Can I withdraw from my RSA before retiring.
Yes. You can withdraw a maximum of 25% of your RSA Balance before retirement.
Can I withdraw 25% payment more than once?
No. 25% payment can only be withdrawn once. The remaining RSA balance shall be accessed at the retirement.
What is annuity?
It is a string of payments made by Insurance company to its annuitants.
Can I run simultaneously Programmed Withdrawal (PW) and Annuity as a retiree?
Yes. A retiree on PW may choose to use his lump-sum payment as premium for the purchase of annuity.
Is there any fixed percentage for lumpsum?
Lumpsum is residual. There is no fixed percentage.

Multi Funds (11)

What is the multi-fund structure?
The Multi-Fund structure is a framework that aims to align the age and risk profile of RSA holders by splitting the RSA Fund into four (4) distinct Funds. The current RSA Fund will be sub-divided into three separate Funds, while the RSA Retirees Fund would be the 4th Fund.
Can I decide which fund to be assigned to?
On the commencement date, the default mechanism will apply. All active members that are 49 years and below will be placed in Fund II and active contributors above 50 years would be placed in Fund III. However, active contributors may apply to switch between funds. An active contributor can switch from Fund II to Fund I while an active contributor in Fund III can switch to Fund II. All active contributors above 50 years cannot switch to Fund I and retirees cannot move to any other fund types.
When I am in Fund I and then clock 50 years, will I be asked to move to Fund II by choice or Fund III by reason of age?
No, you will be moved by default of age limit to fund III, but you have the option to move to fund II thereafter and you can opt out within every twelve (12) months.
As a retiree, can I move to other funds?
No, as a retiree you are not allowed to move out of Fund IV as it has limited risk attached to it.
Is there any restriction/charge to my movement between funds?
You can move once in a year without any charge but an additional movement in the same year shall attract a fee to be determined by PENCOM.
Do I have the option of selecting the instruments my funds can be invested in?
No. PFAs are the Fund managers and have the responsibility of investing your funds in secured investments so as to ensure good yields on your funds.
Can I split my current savings to 2 different funds?
No, this is not possible because you are only identified with one PIN and cannot be allowed to have contributions in more than one fund structure at the same time.
If my date of birth is wrongly captured, under which Fund Type will I be profiled?
Your fund will be profiled using your provided date of birth. However, you can still check and update your records with your PFA before the commencement of the transition.
What is the relationship between the transfer window and the Multi-Fund structure?
There is no relationship between the transfer window and the multi-fund structure. The transfer window allows the customer the choice of moving his/her RSA from one PFA to another while the multi fund allows a customer the choice of moving from one fund type to another within the same PFA.
Will the movement of Funds affect my account balance?
No. The balance in your account will not be affected. However, your unit price will change depending on the fund type.
What is the effect of movement to a new fund on my Voluntary Contribution?
Your RSA PIN accommodates both your Pension contribution and your voluntary contribution, so both will be transferred to your preferred choice of fund and managed in line with the provisions of the circular for voluntary contribution.

Micro Pension Funds (9)

What is Micro Pension Funds?
Micro Pension refers to an arrangement for the provision of pension to the self-employed, and persons operating in the informal sector (fashion designers, mechanics, market sellers, lawyers, taxi drivers, etc.) through the Contributory Pension Scheme. The primary objective of the Micro Pension Plan (MPP) is to provide retirement benefits to the Micro Pension contributors.
How old must I be to start Micro pensions?
Anyone from ages 18 years can open a Micro Pension account. However, those below the stated age can still open an account with the consent of their parents or guardian.
I no longer earn Salary, I’m now self-employed, can I still be a part of Micro Pension?
Yes you can migrate your current RSA to a Micro Pension Plan account by notifying your PFA and providing the necessary documents as recommended by the Commission (PenCom).
What is the difference between Micro Pension and co-operative society?
Unlike the co-operative society, Micro Pension’s primary aim is to help you plan for your retirement. Funds are invested securely till the time of retirement. With the Micro Pension, you still have access to 25% of your contribution at any time before retirement.
What is the difference between Micro Pensions and Voluntary Contributions?
Voluntary Contribution can only be made through an employer while Micro Pensions can be made individually with no maximum limit of contribution.
Can I have access to my savings before retirement?
Yes you can access up to 25% of your contributions to the Micro Pensions Scheme at any time for contingency. The remaining 75% will be invested on prevalent compound interest rates until the age of retirement when you can have access to lumpsum or programmed withdrawal.
Do I need my employer to make remittance for me?
No.
How can I monitor my money with the Micro Pension?
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.
How often do I get to make remittance to my Micro Pension account?
You can schedule your remittance based on your preferences either daily, weekly or monthly.