http://www.punchng.com/business/business-economy/pencom-to-clarify-use-of-pension-for-mortgages/

Please does anyone know what the guideline may entail and how soon it may take off. This is a well needed leeway to access part of this so called Pension for equity contribution on mortgage. One is not sure of meeting the entire pension fund intact in old age in this our Nigeria. At least, let's utilise part of it NOW for something meaningful like housing.

Anyone with info?

The National Pension Commission on Wednesday said it would soon issue a new guideline that would spell out how contributors under the Contributory Pension Scheme could use their funds to access mortgages.

The Director-General, PenCom, Mrs. Chinelo Anohu-Amazu, stated this in Abuja at a stakeholders’ conference on the Pension Reform Act, 2014.

The PRA 2014, which repealed the 2004 Act, was signed into law on July 1, 2014 by President Goodluck Jonathan.

Under the old pension law, the Pension Fund Administrators could not directly invest in real estate.

But the PenCom boss said with the new Act, the PFAs could now do so, adding that with the development, majority of the over six million contributors could now utilise part of their funds as equity contributions for residential mortgage.

Anohu-Amazu said, “The most important thing is the allowances of the utilisation of the retirement savings balance for the provision of a primary home. For the first time, you are now able, as a contributor, to utilise part of your balance to secure your own primary home in accordance with the guidelines to be issued by the commission.

“And I think this is fantastic in a country where we have over 15 million housing deficit; at least, those who are contributing – over six million contributors under the Contributory Pension Scheme – can now for the first time be able to utilise the money rather than just leaving it there.

“The process of issuing these guidelines is already at an advanced stage and it is our expectation that as soon as it is implemented, this development will assist in bridging the housing deficit in Nigeria.”

The PenCom DG said by setting standards, which state governments would be required to comply with for the benefit of their employees, the application of the CPS by the states and local governments had received a boost under the PRA 2014.

On some of the public sector challenges facing the scheme, she said the workshop would enable relevant government agencies to specifically address them based on the provisions of the law.

Anohu-Amazu said, “The new Act clearly outlined the responsibilities of other government institutions in the implementation of the CPS.

“Thus, public sector challenges under the CPS, which were encountered during the past 10 years, in the areas of remittance of pension contributions, funding of the retirement benefits bond redemption fund account, and duration and adequacy of monthly pensions for public servants are some of the issues to be specifically addressed.”

She said the establishment of the Pension Protection Fund and Minimum Pension Guarantee were some of the innovations of the new Act.

“The introduction of a minimum pension guarantee so that it doesn’t matter what your contributions are, you are guaranteed a base minimum to satisfy and take care of you in old age,” she added.

Also speaking at the workshop, the Deputy Governor, Operations, Central Bank of Nigeria, Alhaji Suleiman Barau, said workers now had reasons to celebrate going by the transformation that had so far been recorded in the nation’s pension industry.

He said going by the shortcomings of the PRA 2004, coupled with some of the changing realities witnessed within the last 10 years, there was a need for a review of the Act in line with current trends.

anyone with useful info on the likely modalities?