I heard that it is your amount of salary dat determines your pension. How true is dat??. I heard it is from your salary dat pension is deducted from. How true is that??. What is the difference between gratuity nd pension. And lastly is pension for life or it will stop at some point. Pls mods move to Front page

Employees contribute 8% of addition of your monthly Basic, Housing & Transport allowances and employer contribute 10% of same and remitted to pension adminstrator. Employee can only have access to 25% of this fund after three months after disengagement from from if the employee is not up to 50years of age but if the employee is fifrty, it is entitled to 50% of the amount contributed.

Love800:
I heard that it is your amount of salary dat determines your pension. How true is dat??. I heard it is from your salary dat pension is deducted from. How true is that??. What is the difference between gratuity nd pension. And lastly is pension for life or it will stop at some point. Pls mods move to Front page

I heard that it is your amount of salary dat determines your pension. How true is dat??.

Pension contribution is a percentage of an employees total emolument, the emolument in question must not be less than a total sum of basic salary, housing allowance and transport allowance. The employer contributes minimum of 10% while the employee contributes minimum of 8% of the employee's total emolument.

I heard it is from your salary dat pension is deducted from. How true is that??.

The 8% to be contributed by the employee comes from the employees salary but the 10% to be contributed by the employer MUST NOT be from your salary.

What is the difference between gratuity nd pension.

Gratuity is in the old pension scheme, it is a lump amount paid to an employee immediately the employee retires.
Pension is a continuous monthly or quarterly payment, paid to a retired staff.
Under the Contributory Pension Scheme what is likened to Gratuity is lump sum.

And lastly is pension for life or it will stop at some point.

In the old pension scheme they mostly said pension was for life, but in practice people were not paid at all or paid very late, this is because the scheme was largely unfunded and not transparent.
In the new pension scheme, its clear that pension is for life when you buy an Annuity BUT you should read your annuity agreement very well and be sure you understand what you are signing up for, for life.
For programmed withdrawal with PFAs, the PFAs have a template they use to ESTIMATE how many years they will pay you pension, it used to be around 20 years, you should knowledgeably ask your PFA about this, in addition, the law says if you contributed pension for 10 years while you were working, the PFAs will continue to pay you minimum pension (one third of the prevailing minimum wage) for Life. Infact, what is currently been done EXCEEDS that because PenCom directed PFAs to continue paying the retirees who have exhausted their RSA balances, the same amount they were been paid as monthly pension.

Source: https://www.pensionnigeria.com/