I think you can withdraw 25% whenever you retire. You will have to convince them that you have retired. If you have any problems, take the matter to PENCOM, they are the regulators.

The truth of the matter is that most companies do not remit these pension funds.I ve worked for 10 months and never had pension fund paid into my pension acct.Only God knows what they use my money for and they deduct this pension fund from my salary monthly.How can one tackle that?

mjay:

What happnd when u hit 50? Does any of the requirements change? That is if you resign or lose your job or whatever, wht happns when you re 50?

When u attain the age of 50, u simply apply for full withdrawal, using about the same required docs, in addition to a birth-certificate or age declaration to confirm u are trully over 50.

For funds less than 500,000 u will get a one-off lump sum payment, but if the funds are substantial, e.g 10,000,000 u can get a lump-sim payment (kinda like gratuity) up to 25-50%, provided what is left is sufficient to fund annuity or programmed withdrawal for a period of at least 10yrs. Annuity is an insurance vehicle that secures a string of regular lodgements into your account for a period in excess of what the funds should cover, e.g 90,000 annuity can be used to buy a monthly payment of N10,000 for a yr. Your choices are supposed to be linked to expected life expectancy and the size of your last salary before retirement because the monthly pension should at least match 50% of your regular monthly take-home.

Simply download the Pension ACT and read it for yourself on,

http://siteresources.worldbank.org/INTPENSIONS/Resources/395443-1122047906143/PenLegNigeria2004.pdf

Cheers

consult an expert issues like these are very technical any wrong move u make your company might sue you

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All Pension mgrs follows the Pension Law. You can only get 25% if you lost your job after 6months. It is a good policy to save for the rainy day. For all employees whose companies refused to remit your money after it was deducted should find a way to cleverly write EFCC. Letting others know may make you lose your job. I lost my job in 2006, but my ex-employer deducted many workers pension and chopped the thing, then sacked us - amounting to N38million. I took it upon myself and a few other staff and started writing letters to efcc. Many of the other staff squealed on me but no stress. This is after we have gone thru Ministry of labour, lawyer, etc. They company even asked us to go to court as they keep settling at every stage. At last, after 2years, their contact in EFCC was transferred and the case got noticed by her subordinate. We were just called one beautiful morning and told to go and pick our cheque. But it took two solid years with perseverance.

Actionleap please how do i contact EFCC, because one company chop plenty of us money.

The Nigerian PENCOM is a fraud. It is not for the benefit of the retired workers who have put in their youthful years to the service of their fatherland.

For instance, I put in about 21 years in service before retiring. My gratuity was N4M+. But I was given only N1M+ (25%) on the ground that I was not up to 50 years or 35 years in service. The painful aspect was that the PENCOM/PFA told me to look for another job since I was young. Should that be their concern when I have not received the full benefit of the work already done? In fact, before I got the money, I was always moving between my base and Abuja for many times in the name of verifications, thereby incurring unnecessary expenses. Also, it was over a year after retirement before I got the money, meaning that I have already incurred some debts.

The problem there is that I have N3M with my PFA while I am barely surviving and can't pay my children's school fees any longer. The worse thing is that I can not enjoy my retirement life as I can not execute my plans. I have become hopeless and full of regrets that I wasted 21 years in the service of my fatherland. I was told by my PFA that once my monthly pension payment drains the remaining balance, my pension will stop. When asked when, they told me in not more than 12 years to come. I then asked them whether my N3M will be refunded at expiration of my pension period and they said NO. What kind of biz will you deposit money that is supposed to be generating interest and at the end of transaction your capital  remains with the biz partner as nonrefundable deposit? And Do you know that you are paid barely 1% of deposit as pension per month? Please confirm.

As far as I'm concerned, the scheme is a fraud, lacks workers welfare and an avenue for some persons in the name of PENCOM/PFA to enjoy the sweat of the workers. If govt can not pay pension for retirees, it should adopt the pay-off system, where a worker is paid off after retirement. A good option is for govt to double the accumulated gratuity and pay off the worker. The present scheme is a killer to workers. Forget the NLC saying it is the best for workers. NLC is saying that because they are on the payroll of PENCOM/PFAs.

Government should change the PENCOM and look at the pay-off option to better the lot of the workers, otherwise the spate of corruption by civil servants will become uncontrollable.

I don't blame the military who has resisted the scheme in its entirety. PENCOM/PFA is a great fraud and an injustice of the highest order to the Nigerian worker.

It's really a fraud, imagine working for more than two years, and the money is being deposited but no growth. The PFA don't fail to collect their charge, in essence I've less than i have contributed.

They claimed it was an improvement while it is a complete fraud.

Hello Agitator,

EFCC's office is in Ikoyi. Ensure you use courier to send your letter and get acknowledgment of receipt from them. It might take time, but something would be done about it.

Hello All, this Pension system is the best. Imagine yourself having to que to get your pension when you grow old like it was done some few years back. Horrible, it makes me feel sad about growing old.
Jamace, you can't get more than that 25% for now. All workers must seek information about their pension money now while they are still working. At least, you can change your pension manager very soon. I think the law that set up the PFA says that you cannot change your PFA until after they must have operated for either 5 or 10years.
Anyway you guys look at it. This is one of the good things OBJ did while in govt. Everybody MUST start planning for that time when you may not sound cock as you sound now. That job is only temporary. I always smile to myself when i see some people behave arrogantly when they are given a simple position in the office. Most of them have no plan beyond their next salary. What a life!

Hello All, this Pension system is the best. Imagine yourself having to que to get your pension when you grow old like it was done some few years back. Horrible, it makes me feel sad about growing old.
Jamace, you can't get more than that 25% for now. All workers must seek information about their pension money now while they are still working. At least, you can change your pension manager very soon. I think the law that set up the PFA says that you cannot change your PFA until after they must have operated for either 5 or 10years.
Anyway you guys look at it. This is one of the good things OBJ did while in govt. Everybody MUST start planning for that time when you may not sound rooster as you sound now. That job is only temporary. I always smile to myself when i see some people behave arrogantly when they are given a simple position in the office. Most of them have no plan beyond their next salary. What a life!

Bros, what is best in this scheme? A scheme where you are paid peanuts in the name of gratuity and on top of that your monthly pension is a mockery of payment for service rendered?

After analyzing the scheme, I noticed that the retired worker pays himself pension from his accrued withheld gratuity. I also observed that if the total gratuity merited by a retiree is paid to the retiree at once and he puts it in a fixed deposit, he will get more interest on his capital than what the PFAs offer AND he can still withdraw his initial capital at end of agreement. At the rate this scheme is going most workers may not even live up to old age as High BP caused by lack of money to live and sustain themselves would have killed them.

If I may ask you, how long will the PFAs pay the monthly pension to retirees - 12 years,15 years or untill death? Will the left over capital after payment of 25% or 50% be refunded to retirees at the end of transaction?

OBJ was deceived by some capitalists who saw the loophole in the scheme to exploit workers. I bet you if OBJ had known the intricacies of the scheme, he wouldn't have bought the idea. They are better options to solving the pension issue than the PENCOM scheme. The pay-off option remains the best for the govt. The govt should look at the pay- off option to save the Nigerian workers from PENCOM/PFAs.

@Actionleap

If I may ask you, how long will the PFAs pay the monthly pension to retirees - 12 years,15 years or untill death? Will the left over capital after payment of 25% or 50% be refunded to retirees at the end of transaction? If no, is that a good biz, based on your economic sense?

Please, I need answers.

I believe Actionleap is working with one of the PFAs. Initially i wanted to contribute more i.e. additional voluntary contributions but after having gone through the whole thing, I change my mind.

If I had a choice, i would have preferred to collect all my money IMHO.

Jamare and agitator, I am a businessman who have worked in the salary grind mill for more than 8yrs before setting out on my own. I know the frustration of many on this issue but i would still encourage my workers to join the scheme as getting old without anything to fall back on is scary. Not to imagine people queing up to collect peanuts at old age.

@ Actionleap you didn't answer this question.

jamace:

@Actionleap

If I may ask you, how long will the PFAs pay the monthly pension to retirees - 12 years,15 years or untill death? Will the left over capital after payment of 25% or 50% be refunded to retirees at the end of transaction? If no, is that a good biz, based on your economic sense?

Please, I need answers.

Why did you dodge?

Hello Agitator, i am definately not dodging your post. I do not have answer to your question right away. As i said earlier, i'm not working for any PFA nor would i hold brief for them. But i can do some findings and get back to you.

Been away for a while, I do work with a pfa and while I seriously empathise with u all on ur frustrations with d scheme, we all must agree that this system is still bettr off than what previously existed in both public n private sector. It's all abt perception. Concernin how long d annuity will be funded in retirement, its dependin on d volume of d savings and ur choice indicated as tenure (minimum being 15 yrs). Eg, N5mil annuity could pay roughly 40-45k monthly pension for d 15 year period. If u choose to collect for 20 yrs, d monthly pay out will be reduced to accomodate more payment lodgement into ur checkin acct. What is key, d pension payment streams u receive is far in excess of d initial annuity value. Insurance coys guaranty this payment and purchase this debt to u aftr very stringent bargaining by ur pfa.

^^^Nna, why you dey talk say the present PENCOM is better than the former pension scheme? Have you looked at this with an investor's mind?

Ok let's do small simple interest maths.
Let's assume I have N5m and you as the PFA pays me let's say N50K (maximum, according to you) per month. In 15 years, you would have paid me N8m. Which means you paid me an excess of N3m on my deposit, isn't it? But N3m is 60% of N5m, not so? Ok, now assuming the govt pays me my N5m and I invested it myself for 15 years on fixed deposit which yields 5% per annum (simple interest o) for 15 years, I would have made N8.75m, which is 75% of N5m gain.

Now, look at the difference 60% interest PENCOM and 75% if I personally invested in simple interest. That is 15% loss to me or 15% gain to PENCOM? Just imagine if I had invested my N5m with compound interest? . Note that if I invest my money myself, my initial capital remains mine but with PENCOM, it is bye- bye to the initial capital.

So, you see that the PFAs gain while the workers lose.

I will in conclusion safely say that PENCOM is a CAPITALIST invention to further improverish the poor workers. Think about it.

PENCOM /PFA, comment on this thread o. Stop decieving the govt and pay workers their sweat money.

I hope govt is reading this thread.

Where are the PFAs/PENCOM people? Why are they dodging this thread?

PENCOM is living on blood money. The pensioners are dying daily while PENCOM officials and PFAs are enjoying.

Imagine having about N3m with my PFA and no increase/profit since 2008. Is this a good biz? Govt has pushed his workers to wolves in sheep's clothing just to dodge responsibility.

Govt must wake up to its responsibility.

Guy, u hav a point but u failed to realise, u can't eat ur cake and have it. If u fix d funds for 15 yrs, compounded, and make so much more money than d annuity projection, what is d man supposed to live-off on throughout d 15 years? My annuity option gives u a healthy mix of investment income and cash-flow in retirement. D monthly payouts ar also from your accrued pool, so in essence, its a reducing balance. Be open minded about these things. Besides, for well-off folks, an option is to have d whole funds invested in perpetuity and hav only the interest accrued paid to them as pocket money. Mr a's option and life choices neednt b d same as mr b. The scheme works and is difficult to maniopulate, hence incidence of fraud is almost zero

jamace: ^^^Nna, why you dey talk say the present PENCOM is better than the former pension scheme? Have you looked at this with an investor's mind?

Ok let's do small simple interest maths.
Let's assume I have N5m and you as the PFA pays me let's say N50K (maximum, according to you) per month. In 15 years, you would have paid me N8m. Which means you paid me an excess of N3m on my deposit, isn't it? But N3m is 60% of N5m, not so? Ok, now assuming the govt pays me my N5m and I invested it myself for 15 years on fixed deposit which yields 5% per annum (simple interest o) for 15 years, I would have made N8.75m, which is 75% of N5m gain.

Now, look at the difference 60% interest PENCOM and 75% if I personally invested in simple interest. That is 15% loss to me or 15% gain to PENCOM? Just imagine if I had invested my N5m with compound interest? . Note that if I invest my money myself, my initial capital remains mine but with PENCOM, it is bye- bye to the initial capital.

So, you see that the PFAs gain while the workers lose.

I will in conclusion safely say that PENCOM is a CAPITALIST invention to further improverish the poor workers. Think about it.

My dear, its absolutely impossible that your money hasn't increased since 2008. Yes, no new remittances because u ar no-longer in paid employment, but as d PFAs unit price keeps growin, so does ur own fund because the no of units u had is already fixed. If at d time u left, it was N1.10 (totalling N3mil) and it is now currently N1.85, ur N3mil is well in d region of N5mil or more. Ur money never stopped workin. Upon ur 50(h bday, ensure u follow up and carry big ghana-must-go to ur PFA. But it will stil be spread into lump-sum and monthly payments o. [qu
ote author=jamace]Imagine having about N3m with my PFA and no increase/profit since 2008. Is this a good biz? Govt has pushed his workers to wolves in sheep's clothing just to dodge responsibility.

Govt must wake up to its responsibility. [/quote]

My dear, its absolutely impossible that your money hasn't increased since 2008. Yes, no new remittances because u ar no-longer in paid employment, but as d PFAs unit price keeps growin, so does ur own fund because the no of units u had is already fixed. If at d time u left, it was N1.10 (totalling N3mil) and it is now currently N1.85, ur N3mil is well in d region of N5mil or more. Ur money never stopped workin. Upon ur 50(h bday, ensure u follow up and carry big ghana-must-go to ur PFA. But it will stil be spread into lump-sum and monthly payments o

Frankly, it has not increased, that is, it is not growing/no interest. Meanwhile, the money is tending to zero.

The only good thing I've seen about the PENCOM/PFA is that it has helped to create job for some people. And believe it or not, it is the retired personnel who have created jobs and are paying those employed in the system with their witheld retired benefits.

The law regulating pensions in Nigeria is very strict and restrictive. A lot of workers were led into it in ignorance which incidentally can not be an excuse now. Many people if they bothered to read the law would have had a second thought but unfortunately many did not and they are now stuck. Take the advice of your pension managers. That is what is best for you.