moscobabs:

so the employer suppose to remit the pension within 7days while my former company has not remitted part of last year deduction

pls what step can I take to claim it from my old company pls?

micklplus:


Not correct!
Retirement benefit through programmed withdrawal can never deplete your Retirement Savings Account.

Mostly, your monthly pension payment is made from interest accrued on your savings.

A quick question, even though a retiree is paid his monthly retirement benefit, how come the money keeps growing?

Realwvn:
‎Your pension fund administrator (PFA) will take your questions and give you all the information you need to make the right choices as you prepare for life after work. Furthermore, here are 10 things you should know about your pensions before you retire. 

1. What’s the due date and payment mode?

If you choose to be paid monthly, your PFA will pay your money to your bank account on or before  the 24th day of each month. You don’t have to worry about cheques or any long process. Receiving your pension will be completely convenient for you.  

2. What happens in the event of death?

If one is on the Contributory Pension Scheme (CPS) and dies either in active service or after retirement, the next-of-kin as provided by the deceased to the PFA will be contacted to provide relevant documents for processing the contributions. The contributions will be paid to the named beneficiary in the WILL of the Letter of Administration. 

3. Can you change your next of kin after you retire?

This can be done at anytime. The change of personal information form will ideally be found on the website of your PFA. Download the form, fill it and submit to your PFA for actioning. 

4. How much can you take at once when you retire?

As lumpsum, a retiree is entitled to an amount not less than 25% and not more than 50%. This amount is however dependent on the fact that the retiree is able to collect a monthly pensions of not less than 50% of his/her last salary (computed based on the housing, basic and transport) for a estimated period of atleast 18 years. 

5. How soon can you start getting your pension after you retire? 

The process of documentation actually starts six months before you retire. For FG employees they have to go for the Bond verification exercise organised by PENCOM. This exercise basically is to enable PENCOM consolidate their account and ensure their accrued rights are paid immediately they retire. For Private sector employees, your PFA has to confirm that all contributions due to you have been made. This process is called ‘consolidation of account’. After this is done, the process of actual payment should take about 3 weeks. 

6. Can you choose how you want to be paid?

The programmed withdrawal means you get to choose your payment interval by yourself. You can choose to be paid your pension monthly or quarterly depending on what you think works best for you. Your PFA will be crediting your bank account according to the plan you choose.

7. Can you take from your RSA before you retire?

Yes you can withdraw for your RSA before you retire if you are out of employment for four months and you’re unable to secure another employment. You will be given 25% of your RSA balance. After this 25% has been withdrawn for your RSA, the balance cannot be touched until retirement.

However, if you choose to make additional voluntary contributions (AVC) into your Retirement Savings Account (RSA) you are entitled to withdraw from your AVC any time before retirement (it is tax free if withdrawal is after 5 years). So if you’ve been putting some AVC in your retirement account or if you start now, you too can withdraw from that at any point before you retire.  

8. What happens to your balance after you withdraw your lump sum?

When you retire and take an initial lump sum from your RSA, the rest of the money will either be used to procure an annuity for you, or it will be used to fund a programmed withdrawal that pays you for an estimated lifespan of not less than 18 years…in real terms…for life.
A programmed withdrawal is a method by which the employee collects his retirement benefits in periodic sums spread throughout the length of an estimated life span.
An annuity is an income purchased from an approved life insurance company which provides monthly or quarterly income to the retiree during his/her lifetime but only the first 10 years are guaranteed meaning if the retiree dies AFTER 10 years, his/her beneficiaries get NOTHING.

9. Other than when you retire, when can you have access to your RSA?

There are special cases. For instance, if you retire before you’re 50 years old because of a mental or physical disability, your PFA will give you immediate access to your RSA. You can also claim 25% of your pensions if you lose your job and can’t get a new one within four months.

10. Should you move your pensions to an
insurance company when you retire? 

It is entirely your choice but you’re strongly advised to keep your pensions with your PFA. Your PFA manages your pensions while you work, they invest the pensions for you safely and they update you regularly about how your money is doing to help you prepare well for retirement. This proves that you can trust them to keep delivering even after you retire. Besides once you move from Programmed Withdrawals to Annuity, you CANNOT move back if you’re are not satisfied with the services they offer or the deal you got. So choose wisely and make n informed decision. Your future and that of your loved ones count on it



http://www.naijanewsrave.com/10-things-you-need-to-know-about-pension-in-nigeria/

dhardline:


That means that the retirement benefit continues to grow indefinitely due to the interest ?

When its not as if the PFA's are not in it for profit.once a pensioner exhausts the his pension

Savings he stops being paid and most time the stipulated perios is around 10years.

debbie:
These question and answer session sounds so easy and simple....trust me
But in reality it doesnt work like that.

Please who do you report a case whereby your company hasn't remitted your pension for over 6months now? I need answers because this is a pressing case at hand.

just2endowed:



My organization pays equally. And the pension company is fully aware of all this.

UjSizzle:

What do you mean by "pays equally"?

jaybee3:


perhaps the employer matches the employees contribution

Besides, is pension the best assured long term investment plan?
Though it's probably the cheapest investment with respect to projected income upon maturity but the risks especially in an unstable economy is just too big to ignore

micklplus:


No duration and please, don't spread false hood.
By design, it outgrows the contributor and at death, the total balance in that account is paid to the Next of Kin.

Thanks

UjSizzle:

If the employer is still contributing 7.5% it means they haven't adopted the new Act.

Realwvn:
‎Your pension fund administrator (PFA) will take your questions and give you all the information you need to make the right choices as you prepare for life after work. Furthermore, here are 10 things you should know about your pensions before you retire. 

 

2. What happens in the event of death?

If one is on the Contributory Pension Scheme (CPS) and dies either in active service or after retirement, the next-of-kin as provided by the deceased to the PFA will be contacted to provide relevant documents for processing the contributions. The contributions will be paid to the named beneficiary in the WILL of the Letter of Administration. 

 





http://www.naijanewsrave.com/10-things-you-need-to-know-about-pension-in-nigeria/

UjSizzle:
You know before all these, PenCom needs to find a way to nab employers who fail to deduct pension from the employee gross emolument, and those who deduct and fail to remit to the PFC.
I don't get the point of passing the Pension Act if there won't be a follow-up to ensure its administered. Pay attention to employers and enforce like taxes are administered in Nigeria! We have so many people who exploit others, it's unfair.


But before this masses need education. How many people know that they're entitled in the contributory pension scheme to have an 8% deduction from their gross emolument, and 10% employer contribution?
How many are aware that this fund should be remitted within 7days to the PFCs?
And that the Act (amended 2014) empowers PenCom to file criminal charges against employers who default?

dhardline:
I dont want to agree with the part that says you are sttongly advised to leave your pension with

the PFA cause from the information i have gathered over time on this topic i have realised that

they say that so they can continue to keep your money and hence use it to accumulate

interests.That write up failed to mention that if you use the programmed witdrawal and the

money you have in the account finishes they instantly stop paying you and hence you have nobody

to turn to except you have familes or investments which you can fall back to.

But if you get Annuity from an insurance company that amount will be used to buy a package for

you that will ensure you will continue getting paid as long as you live after your retirement cause

definitely the PFA funds will be invested and the interest will aid the continuous payment.

So its all depends on what you want.

debbie:
These question and answer session sounds so easy and simple....trust me
But in reality it doesnt work like that.

Please who do you report a case whereby your company hasn't remitted your pension for over 6months now? I need answers because this is a pressing case at hand.

LaurelP:


So how do u get to choose d one u want?

micklplus:


In the new order, PFAs carry out time to time forum to educate intending retirees in order for them to know what documentations that is required of them at the point of retirement.

Some of these documents are put in place 6 months before retirement. Once documentations are right and approval from PENCOM is in place, a retiree should get his/her retirement benefits in 90 days max!!

In some case where accrued right and nominal roll are required, such retirees might wait a little longer before the retirement benefit would come. That is why employees are educated through forum from time to time as to what is expected of them.

fame12k:


If the total contribution left in your RSA is less than N550,000 you will be paid off the full at once. But if more than N550,000 It will be spread out and paid monthly, depending on the package u opt for. you run programme withdrawal at leadway pensure Pfa

UjSizzle:

What do you mean by "pays equally"?

Jonwesley:


Please educate me, I'm on my private business and managing on with my family. I have an RSA account while working with a company and left since 7 years. I have no other job secured since then. I went to my RSA account holder and was paid 25% as you rightly stated. I was told the balance left will be paid me on attainment of 50years. Are U insinuating that I won't be paid everything, but an agreed instalments?
I just can't accept anything but my full balance to make up for my petty business of trading. I'm patiently waiting to be 50years now to face them.

just2endowed:


i mean the employee and the employer contribution are paid equally to the pension account

micklplus:


At 50, you would be paid your full retirement saving if your contribution is less that 550,000. You would be placed on programmed withdrawal if your contribution is more than 550,000. That is, some percentage of your contribution is paid to you and the balance is paid to you monthly.

The other option is annuity.

LaurelP:


Thank u very much for dis info.
So are u saying that only 8% of an employee's salary shud be deducted for pension while the employer contributes 10% of his (employee's) salary as pension? Pls elaborate more.

just2endowed:


i mean the employee and the employer contribution are paid equally to the pension account

dd12345:

according to the pension act 2004...your monthly pension contribution is being paid by you the employee and the employer...you(employee) pays 7.5% of your monthly basic salary while the employer pays 7.5% of the same basic salary from his own account on your behalf.(equal amount by employee and employer
but by the new pension act 2014, employee pays 8% while the employer pays 10%

UjSizzle:

Yes that's what I'm saying. You're entitled to a minimum of 8% deduction on your gross emolument monthly, while your employer contributes 10%.

dd12345:


@ Jonwesley you won't be paid everything, but an agreed instalments according to pension act 2004 and 2014...

the essence of pension is to take care of you in your old age not to help finance your business( which has risk of loss or gain)

LaurelP:


What I have right now is dat my employer is deducting 10%.

dd12345:


according to the pension act 2004...your monthly pension contribution is being paid by you the employee and the employer...you(employee) pays 7.5% of your monthly basic salary while the employer pays 7.5% of the same basic salary from his own account on your behalf.(equal amount by employee and employer

but by the new pension act 2014, employee pays 8% while the employer pays 10%

Jonwesley:


Thanks mickplus, my balance is more than that please. My question is why not pay me everything when I have dependents and have no other source to increase my capital for business. And it's the business that is feeding all of us now.