How many years do you have to work to get pension in Nigeria?
There is no qualifying period for pension. If an employee works for an employer for one month, his pension contribution will be paid by the employer into the employee’s Retirement Savings Account (RSA) for that month.
How long does it take to get approval from PenCom?
Please note that from the day of submission, the receipt of approval from PenCom, and the actual crediting of your account should take an average of 20 working days.
What is the due date for pension remittance in Nigeria?
Section 11 (5) (b) of the Pension Reform Act (PRA 2004) provides that the employer shall not later than 7 days from the day the employee is paid his/her salary, remit an amount comprising the employee’s and employer’s pension contributions to the custodian specified by the Pension Fund Administrator (PFA) of the …
Can I withdraw my pension before retirement in Nigeria?
Withdrawals from the RSA can only be made upon retirement. However, where an employee makes additional or voluntary lump sum contributions into the RSA, he can withdraw such money before retirement or attainment of the age of 50 years.
At what age can I collect my pension?
age 65
You may begin receiving your pension when you retire early, at age 65, or after age 65. Your pension does not begin automatically; you must apply for it in advance.
What is the penalty for non remittance of pension in Nigeria?
The penalty, according to the pension law will not be less than 2 percent of the total contribution that remains unpaid for each month, or part of each month that the default continues, and the amount of the penalty will be recoverable as a debt owing to the employee’s retirement savings account as the case may be.
Can I get pension at 60?
Yes, the qualifying age for the service pension is 60 years for both men and women.
How is Nigerian pension paid?
Pension contributions The minimum contribution under the Act is 18% of monthly emolument (with a minimum contribution of 10% by the employer and 8% by the employee). If the employer decides to bear all the contribution, the minimum contribution is 20% of monthly emolument.
Is pension a lifetime?
Pension payments are made for the rest of your life, no matter how long you live, and can possibly continue after death with your spouse. Lump-sum payments give you more control over your money, allowing you the flexibility of spending it or investing it when and how you see fit.
What is the penalty if your employer refused to remit pension contribution?
It is mandatory for your employer to remit the pension contributions, and any non-remittance or late remittance is illegal. The penalty is payment of the amounts which are due to be paid, plus not less than 2% of the amount due.
Can I start a pension at 60?
Start a pension now There is no minimum amount of time you need to have paid into a defined contribution pension before you can start drawing an income from it – provided you are over 55 when you access it – so it really is never too late to start a pension.
Why did Obasanjo introduce pension reform in Nigeria?
This scenario necessitated a re-think of pension administration in Nigeria by the administration of President Olusegun Obasanjo. Accordingly, the administration initiated a pension reform in order to address and eliminate the problems associated with pension schemes in the country.
What is the role of the National Pension Commission?
The Pension Reform Act 2004 established the National Pension Commission (PenCom) as the body to regulate, supervise and ensure the effective administration of pension matters in Nigeria. Regulation and supervision of the Scheme established under the Act.
What is the Pension Reform Act 2014?
The Pension Reform Act (PRA) 2014 expanded coverage of the CPS to the self-employed and persons working in organizations with less than 3 employees. Prior to the enactment of the Pension Reform Act 2004, pension schemes in Nigeria had been bedevilled by many problems.