Thread by @Citizen_Connect

20 things Every Nigerian Employees should know about the #PensionScheme
The Pension Reform Act (PRA) set rules&standards for the payments of retirement benefits to ensure that every person who worked in either Public Service&private sector @TutuAbbey @AbdulMahmud01 @monye_morris

in the Federation, FCT, States,Local Governments or the Private Sector receives his retirement benefits as and when due; and assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age.

1. The PRA establishes a Contributory #PensionScheme for public and private sector employees

2. Contributory pension applies to private companies with over 15 workers.

3. The Employer and the employee contribute a percentage of the employees’ salary to the scheme every month.

4. The minimum contribution for the employer is 10% and 8% for the employee which is kept in a Retirement Savings Account(RSA)

5.Employees are expected to choose a Pension Fund Administrator (PFA) and provide details to their employer
#PensionScheme

6. Deducted #pension contributions are paid to the PFC specified by the PFA. The PFC informs the PFA of the fund. The PFA then credits the RSA of the employee.
7. An employee can maintain the same PFA after changing job,however, he can switch to another PFA only once in a year.

8. Employers are mandated to remit contribution to the PFC specified by the Employee’s PFA not later than 7 working days from the day the employee is paid his salary.
9. Funds contributed are invested by the PFA in approved investments (Bond, securities etc)
#PensionScheme

10. Employees can not make a withdrawal from their #RSA until they retire or attain 50 years (those less than 50 years can not access their RSA unless under certain conditions)
#PensionScheme

11. A retiree can withdraw a lump sum from the total fund in the #RSA if the amount left can procure an annuity that provides regular income or fund a programmed fund withdrawal
12. The programmed monthly or quarterly withdrawals is calculated on the basis of an expected lifespan

13. Persons who have not attained 50 years can withdrawal from their RSA if they have proven mental or physical incapacity.

14. A Person disengaged before the age of 50 and is unable to secure another employment within four months may withdrawal 25% of the total amount

credited to his/her #RSA The remaining balance will be accessed after he/she attains 50 yrs
15. An employee shall not have access to his RSA or have any dealings with the Pension Fund Custodian with respect to the RSA except through the Pension Fund Administrator. #PensionScheme

16. When an employee dies before retirement, the PFA will release the remaining amount in the RSA after receiving a valid will or a letter of administration confirming the beneficiaries under the estate of the deceased employee.
#PensionScheme #RSA

17. Where an employee is missing after a period of one year. @PenComNig will then set up a board of inquiry after the investigation the employee is presumed dead. The beneficiary of the will or letter of administration will be paid the balance of the RSA
#PensionScheme #RSA

18. Retirement benefits are not taxable this includes interests, dividends, profits, investment and other income accruable to pension funds and assets
#PensionScheme #RSA

19. Employers who do not remit or delay remittance attracts a penalty. The Penalty is the payment of the unpaid remittance, plus not less than 2% of the amount due

20. Employees can pay Additional Voluntary Contributions to their RSA which they can withdraw at any point before retirement, it is not tax-free unless withdrawn after 5 years