Pencom releases guidelines for pension funds withdrawal @hitcitytv


In line with the provisions of the Pension Act of
2014, Pencom has released
guidelines for the withdrawal of pension funds
This new development will enable Retirement
Services Account (RSA) holders
to make use of their pension fund balances to
make acquisitions of their
primary homes.
In a statement made available to us by Chinel
Anohu-Amazu, the Director
General of National Pension Commission, He
said; the change was made to
allow for “funds to be accessed in a manner that
is safe”.
Currently, Nigeria’s contributory pension system
is a function of the
employee’s salary- 10 per cent paid by the
employer and eight per cent paid
by the employee.
Anohu Amazu who met President Muhammadu
Buhari recently said they
extensively spoke on the pension industry as a
whole and highlighting the
achievements as well as bringing to the fore the
One of the primary issues surrounding pensions
in Nigeria is the payment of
the accrued rights, which are pensioners who
have already retired with a
hybrid of this contributory pension system and
accrued rights from their
previous careers and the federal government,
she said
“As is typical of Mr president, as soon as the
challenges were explained to
him, he ordered both the minister of finance and
the Central Bank of
Nigeria to make sure the complete off-setting of
the pension liabilities
under the CPS [contributory pension scheme] is
supervised so retirees
don’t have to wait forever to get their pension.”
Further, the ministry also asked for the
president’s participation in the
World Pension Summit, specifically with the
World Pension’s Reward which
will look into African countries’ innovation,
corporate governance and
their administering of African benefits.
The beauty of the contributory pension system,
you don’t have to run after
anyone to pay your dues, you receive quarterly
statements as soon as you
retire, your money is paid immediately.” Amazu
Anohu said
She made a distinguish comparison between the
old system of accrued rights
and the current one, those contributions are “safe and intact” and they are
just waiting for the accrued rights to come in so
that the computation can
be done on a global basis. “Those who have
retired on the contributory
system don’t have that problem.

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