₦airaland Forum

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.

But the writer did mention that for annuity only the first 10years that is guaranteed. Are you now saying that annuity will keep paying even if the person lives 4 an additional 20years

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/

Great write up!
Please op when is the pension payment suppose to commence after retirement?

Pamelayoung:
But the writer did mention that for annuity only the first 10years that is guaranteed. Are you now saying that annuity will keep paying even if the person lives 4 an additional 20years

Yes he/she will be paid as long as he/she lives and its the same amount all thru.no reduction.

Please I have a question , I think I have asked this in one old thread,

My mum is recently retired and still processing her benefits/documents which will take like 90 days max according to her former employer ( They are still processing her letter to in her former office before forwarding it , its a governement owned institution) and she has been asking me which one is better, program withdrawal or annuity. She has not gotten to that stage of filling the choosing form at the PFA yet and she has asked for my opinion as always.

I did research on NL and the internet generally , I have read and studied the technicalities involved and I think programmed withdrawal is better, she feels its annuity because they pay for life and a lot of people from her work place go for that. She retired at 65. I have read the pros and con's and I think programmed withdrawal is better, I also know no one is supposed to influence a retirees choice of the two from my small research but I think its my duty to ensure she makes a right choice.

For those who have parents retired /have retired and have done either or those in the financial /investment/Law sector please advise oo.


ARM is her PFA and they have been okay(at least from information her retired friends gave her) and they called to confirm her retirement date.

Micklplus
Davide470
Moscobabs
Jarus
Everybody


Thank you

yetseyi:
Please I have a question , I think I have asked this in one old thread,

My mum is recently retired and still processing her benefits/documents which will take like 90 days max according to her former employer ( They are still processing her letter to in her former office before forwarding it , its a governement owned institution) and she has been asking me which one is better, program withdrawal or annuity. She has not gotten to that stage of filling the choosing form at the PFA yet and she has asked for my opinion as always.

I did research on NL and the internet generally , I have read and studied the technicalities involved and I think programmed withdrawal is better, she feels its annuity because they pay for life and a lot of people from her work place go for that. She retired at 65. I have read the pros and con's and I think programmed withdrawal is better, I also know no one is supposed to influence a retirees choice of the two from my small research but I think its my duty to ensure she makes a right choice.

For those who have parents retired /have retired and have done either or those in the financial /investment/Law sector please advise oo.


ARM is her PFA and they have been okay(at least from information her retired friends gave her) and they called to confirm her retirement date.

Micklplus
Davide470
Moscobabs
Jarus
Everybody


Thank you

In a meeting. Would respond before 1pm.
If you can send your number, I would call you

micklplus:
In a meeting. Would respond before 1pm.
If you can send your number, I would call you

Thanks will be expecting your response after the meeting

yetseyi:
Thanks will be expecting your response after the meeting

Okay, i am here.
Though i work with a PFA but, i am glad to tell you, ARM pension is okay!

Yes, programmed withdrawal is good. In PW, your fund is yours. in Annuity, the fund is added to a pool of funds.
In P.W, Monthly pay is paid from the interest gained on the balance after the lump sum would have been paid. It is not possible for the retiree to exhaust the balance. The fund price is ALWAYS growing and that's more money!

Certain retirees that left job several years ago are still being paid monthly while their balances keep increasing .

Incase of death, the next of Kin is paid the balance plus accrued interest in Programmed withdrawal

In annuity and in case of death especially within the 10 year window, the Next of Kin gets paid the sum assured for the 10 year period only and not the entire funds used in the purchase of annuity. After the 10 year period, the next of kin gets paid nothing in case of death.

At the point of purchase of annuity, the insurance agent is paid 3% of your own money!

The margin between P.W and annuity isn't much and shouldn't be an attraction.
Programmed withdrawal is better and not because i work with a PFA but as matter of what is beneficial to you.

Hope this is helpful?

micklplus:
Okay, i am here.
Though i work with a PFA but, i am glad to tell you, ARM pension is okay!

Yes, programmed withdrawal is good. In PW, your fund is yours. in Annuity, the fund is added to a pool of funds.
In P.W, Monthly pay is paid from the interest gained on the balance after the lump sum would have been paid. It is not possible for the retiree to exhaust the balance. The fund price is ALWAYS growing and that's more money!

Certain retirees that left job several years ago are still being paid monthly while their balances keep increasing .

Incase of death, the next of Kin is paid the balance plus accrued interest in Programmed withdrawal

In annuity and in case of death especially within the 10 year window, the Next of Kin gets paid the sum assured for the 10 year period only and not the entire funds used in the purchase of annuity. After the 10 year period, the next of kin gets paid nothing in case of death.

At the point of purchase of annuity, the insurance agent is paid 3% of your own money!

The margin between P.W and annuity isn't much and shouldn't be an attraction.
Programmed withdrawal is better and not because i work with a PFA but as matter of what is beneficial to you.

Hope this is helpful?

Yes very helpful, Kindly elucidate further @ the bolded

Thanks

yetseyi:
Yes very helpful, Kindly elucidate further @ the bolded

Thanks

The principal is reinvested as a going concern. The fund keeps growing and whatever that is paid as the monthly pay is from the interest accrued on the principal therefore, the balance keeps growing on and on.

micklplus:
The principal is reinvested as a going concern. The fund keeps growing and whatever that is paid as the monthly pay is from the interest accrued on the principal therefore, the balance keeps growing on and on.

Thanks a lot

when is the employer suppose to be deduction pension from the employee?

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/

Just aa piece of information I heard and I need to ask people with knowledge/experience.
Is pension planned/phased withdrawals after retirements subject to tax and if so what percent. The discussion is that since pension contribution is not tax, that it is treated as an income when you retire and making withdrawals.

Informed opinions will be appreciated.

Which of the PFA is best;
Premium Pension, ARM pensions, IBTC pension or any other.
Which one should I choose

Please, someone help me out

Please.is it still allowed to withdraw my voluntary pension contribution?.I need my money for the house project.I hope it won't be taxed.I heard firs chairman said it is no longer allowed.pls how true is this?

Hello guys..how do I go about my pension claim..I have the plan of relocating abroad soon...I need 100% of my money

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/

HI Realone(pun intended),

Well done for taking your time to drop this valuable and timeless piece of information here. Believe me, it's like finding a diamond field in middle of a desert. I'm however still confused with regards to the 4th point you made about the retiree being able to collect 50% of his salary. Please would you mind throwing more lights on that?

Also, the situation that concerns me here is with respect to my father. He recently retired in the month of September 2019, and is currently awaiting his pension and benefits from both the government and Pencom. From what I've learned from scheming through the Internet in the last few days, a retiree should be able to access 25-50% of his pension funds upon retiring from active service, and my dad happened to retire at the age of 60. Since he fits the required category, does this mean he can apply for the percentage of his pensions which he's qualified for? Also can you shed a little light on how to go about this application? Things aren't going so smoothly as he's struggling to adjust to not going to work everyday and finances. A reply and a little clarification will be deeply appreciated. Thanks in advance.

Realwvn:
‎

My dear please can you help me with this information

Does pension have a lifespan?

Someone asked me because he was told that his pension is ending next month and it has ran for only about 11 years since he retired

Please kindly reply urgently, thanks, God bless

IME1:
My dear please can you help me with this information

Does pension have a lifespan?

Someone asked me because he was told that his pension is ending next month and it has ran for only about 11 years since he retired

Please kindly reply urgently, thanks, God bless

Good question, pls some one should answer pls.

We can help with annuity packages....

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