Stats: 3,190,028 members, 7,939,147 topics. Date: Tuesday, 03 September 2024 at 07:13 PM |
Nairaland Forum / Nairaland / General / Career / 10 Things You Need To Know About Pension In Nigeria (59060 Views)
Payporte Staff Not Paid Salary In Months – Pension And Tax Not Remitted In Years / FG Pays 81 Months Pension Arrears / Workers To Access 25% Pension Savings For Mortgage …to Forfeit Lump Sum Payment (2) (3) (4)
(1) (2) (3) (4) (5) (Reply) (Go Down)
10 Things You Need To Know About Pension In Nigeria by Realwvn(m): 7:16am On Aug 27, 2015 |
Your pension fund administrator (PFA) will take your questions and give you all the information you need to make the right choices as you prepare for life after work. Furthermore, here are 10 things you should know about your pensions before you retire. 1. What’s the due date and payment mode? If you choose to be paid monthly, your PFA will pay your money to your bank account on or before the 24th day of each month. You don’t have to worry about cheques or any long process. Receiving your pension will be completely convenient for you. 2. What happens in the event of death? If one is on the Contributory Pension Scheme (CPS) and dies either in active service or after retirement, the next-of-kin as provided by the deceased to the PFA will be contacted to provide relevant documents for processing the contributions. The contributions will be paid to the named beneficiary in the WILL of the Letter of Administration. 3. Can you change your next of kin after you retire? This can be done at anytime. The change of personal information form will ideally be found on the website of your PFA. Download the form, fill it and submit to your PFA for actioning. 4. How much can you take at once when you retire? As lumpsum, a retiree is entitled to an amount not less than 25% and not more than 50%. This amount is however dependent on the fact that the retiree is able to collect a monthly pensions of not less than 50% of his/her last salary (computed based on the housing, basic and transport) for a estimated period of atleast 18 years. 5. How soon can you start getting your pension after you retire? The process of documentation actually starts six months before you retire. For FG employees they have to go for the Bond verification exercise organised by PENCOM. This exercise basically is to enable PENCOM consolidate their account and ensure their accrued rights are paid immediately they retire. For Private sector employees, your PFA has to confirm that all contributions due to you have been made. This process is called ‘consolidation of account’. After this is done, the process of actual payment should take about 3 weeks. 6. Can you choose how you want to be paid? The programmed withdrawal means you get to choose your payment interval by yourself. You can choose to be paid your pension monthly or quarterly depending on what you think works best for you. Your PFA will be crediting your bank account according to the plan you choose. 7. Can you take from your RSA before you retire? Yes you can withdraw for your RSA before you retire if you are out of employment for four months and you’re unable to secure another employment. You will be given 25% of your RSA balance. After this 25% has been withdrawn for your RSA, the balance cannot be touched until retirement. However, if you choose to make additional voluntary contributions (AVC) into your Retirement Savings Account (RSA) you are entitled to withdraw from your AVC any time before retirement (it is tax free if withdrawal is after 5 years). So if you’ve been putting some AVC in your retirement account or if you start now, you too can withdraw from that at any point before you retire. 8. What happens to your balance after you withdraw your lump sum? When you retire and take an initial lump sum from your RSA, the rest of the money will either be used to procure an annuity for you, or it will be used to fund a programmed withdrawal that pays you for an estimated lifespan of not less than 18 years…in real terms…for life. A programmed withdrawal is a method by which the employee collects his retirement benefits in periodic sums spread throughout the length of an estimated life span. An annuity is an income purchased from an approved life insurance company which provides monthly or quarterly income to the retiree during his/her lifetime but only the first 10 years are guaranteed meaning if the retiree dies AFTER 10 years, his/her beneficiaries get NOTHING. 9. Other than when you retire, when can you have access to your RSA? There are special cases. For instance, if you retire before you’re 50 years old because of a mental or physical disability, your PFA will give you immediate access to your RSA. You can also claim 25% of your pensions if you lose your job and can’t get a new one within four months. 10. Should you move your pensions to an insurance company when you retire? It is entirely your choice but you’re strongly advised to keep your pensions with your PFA. Your PFA manages your pensions while you work, they invest the pensions for you safely and they update you regularly about how your money is doing to help you prepare well for retirement. This proves that you can trust them to keep delivering even after you retire. Besides once you move from Programmed Withdrawals to Annuity, you CANNOT move back if you’re are not satisfied with the services they offer or the deal you got. So choose wisely and make n informed decision. Your future and that of your loved ones count on it http://www.naijanewsrave.com/10-things-you-need-to-know-about-pension-in-nigeria/ 29 Likes 11 Shares |
Re: 10 Things You Need To Know About Pension In Nigeria by Realwvn(m): 7:17am On Aug 27, 2015 |
FTC... Tell Osinbajo and Buhari I need the N5,000 they promised me 9 Likes |
Re: 10 Things You Need To Know About Pension In Nigeria by 48noble(m): 7:18am On Aug 27, 2015 |
Save it ursef |
Re: 10 Things You Need To Know About Pension In Nigeria by saaedlee: 7:20am On Aug 27, 2015 |
I honestly didnt know these things, all I get is sms telling me how much I have and present payment. 9 Likes 1 Share |
Re: 10 Things You Need To Know About Pension In Nigeria by buzquet(m): 7:22am On Aug 27, 2015 |
E no concern me |
Re: 10 Things You Need To Know About Pension In Nigeria by uzokebes(m): 7:47am On Aug 27, 2015 |
nice one |
Re: 10 Things You Need To Know About Pension In Nigeria by Nobody: 7:58am On Aug 27, 2015 |
I don't think pension is very strong in Nigeria. That's why most of the seniors refuse to retire. They are scared of dying of hunger because the govt. don't really pay attention to pensioners. Therefore,decreasing job opportunity for the new graduates and eligible youths in Nigeria. Creating job opportunities can start with retiring those old men from the office and taking good care of them,then we will be able to occupy those spaces. 2 Likes 1 Share |
Re: 10 Things You Need To Know About Pension In Nigeria by UjSizzle(f): 9:09am On Aug 27, 2015 |
You know before all these, PenCom needs to find a way to nab employers who fail to deduct pension from the employee gross emolument, and those who deduct and fail to remit to the PFC. I don't get the point of passing the Pension Act if there won't be a follow-up to ensure its administered. Pay attention to employers and enforce like taxes are administered in Nigeria! We have so many people who exploit others, it's unfair. But before this masses need education. How many people know that they're entitled in the contributory pension scheme to have an 8% deduction from their gross emolument, and 10% employer contribution? How many are aware that this fund should be remitted within 7days to the PFCs? And that the Act (amended 2014) empowers PenCom to file criminal charges against employers who default? 9 Likes |
Re: 10 Things You Need To Know About Pension In Nigeria by Nobody: 12:10pm On Aug 27, 2015 |
Shawwal1 |
Re: 10 Things You Need To Know About Pension In Nigeria by Bsc(m): 12:11pm On Aug 27, 2015 |
Bros abeg no dey talk about pension again...na so ma neigbour (papa Ebuka) sit down wait for pension, till hm die pension no come. RIp sir ..we miss ur grammar. 1 Like |
Re: 10 Things You Need To Know About Pension In Nigeria by veekid(m): 12:11pm On Aug 27, 2015 |
ah dey find work; u dey talk pension 1 Like |
Re: 10 Things You Need To Know About Pension In Nigeria by ladyF(f): 12:11pm On Aug 27, 2015 |
Educating... It's [size=20pt]LadyF[/size] again ![]() ![]() ![]() |
Re: 10 Things You Need To Know About Pension In Nigeria by clefstone(m): 12:12pm On Aug 27, 2015 |
I hate the word pension, it usually reminds me of old people demonstrating for their pay. For me, every individual must invest during their prime to prevent dependence on pension. That said, the article is very enlightening |
Re: 10 Things You Need To Know About Pension In Nigeria by maxiuc(m): 12:13pm On Aug 27, 2015 |
Where is my father he should come oo this thread is for him |
Re: 10 Things You Need To Know About Pension In Nigeria by jimfend: 12:13pm On Aug 27, 2015 |
Thanks the info... |
Re: 10 Things You Need To Know About Pension In Nigeria by free2ryhme: 12:14pm On Aug 27, 2015 |
![]() Most of the children here don't know about this. Good to keep them informed 2 Likes |
Re: 10 Things You Need To Know About Pension In Nigeria by free2ryhme: 12:14pm On Aug 27, 2015 |
![]() Ask the moderators if they have pension account? 1 Like |
Re: 10 Things You Need To Know About Pension In Nigeria by BRIGHTRIVERS(m): 12:18pm On Aug 27, 2015 |
***BOOKMARKIN 1 Like |
Re: 10 Things You Need To Know About Pension In Nigeria by debbie(f): 12:18pm On Aug 27, 2015 |
These question and answer session sounds so easy and simple....trust me ![]() But in reality it doesnt work like that. Please who do you report a case whereby your company hasn't remitted your pension for over 6months now? I need answers because this is a pressing case at hand. |
Re: 10 Things You Need To Know About Pension In Nigeria by okooloyun1(m): 12:18pm On Aug 27, 2015 |
Ok |
Re: 10 Things You Need To Know About Pension In Nigeria by dcmconny: 12:19pm On Aug 27, 2015 |
why is it dat it's always difficult to get access to your benefit after retirement? ![]() |
Re: 10 Things You Need To Know About Pension In Nigeria by 1MCN: 12:19pm On Aug 27, 2015 |
I HATE PENSIONS, PERIOD. WORST STILL IN NIGERIA |
Re: 10 Things You Need To Know About Pension In Nigeria by TheNextAce: 12:19pm On Aug 27, 2015 |
Nice information |
Re: 10 Things You Need To Know About Pension In Nigeria by patani(m): 12:20pm On Aug 27, 2015 |
Obasanjo did this one at least! Pension reform...kudos to him 1 Like |
Re: 10 Things You Need To Know About Pension In Nigeria by dhardline(m): 12:21pm On Aug 27, 2015 |
I dont want to agree with the part that says you are sttongly advised to leave your pension with the PFA cause from the information i have gathered over time on this topic i have realised that they say that so they can continue to keep your money and hence use it to accumulate interests.That write up failed to mention that if you use the programmed witdrawal and the money you have in the account finishes they instantly stop paying you and hence you have nobody to turn to except you have familes or investments which you can fall back to. But if you get Annuity from an insurance company that amount will be used to buy a package for you that will ensure you will continue getting paid as long as you live after your retirement cause definitely the PFA funds will be invested and the interest will aid the continuous payment. So its all depends on what you want. 3 Likes 2 Shares |
Re: 10 Things You Need To Know About Pension In Nigeria by ayandee: 12:23pm On Aug 27, 2015 |
I've always asked why anyone would consider an annuity. I prefer the programmed withdrawal from PFA over annuity. If a retiree dies, his beneficiaries receive in full the balance of whatever is left from the PFA. With annuity, the beneficiaries receive less as some deductions are usually made by insurance companies. Avoid annuity as much as possible. 1 Like |
Re: 10 Things You Need To Know About Pension In Nigeria by cutelover19(m): 12:23pm On Aug 27, 2015 |
Mods, please why is this link not on the front page. Help a dying baby! https://www.nairaland.com/2517785/save-light-great-fighter |
Re: 10 Things You Need To Know About Pension In Nigeria by Justicealh3(m): 12:23pm On Aug 27, 2015 |
![]() |
Re: 10 Things You Need To Know About Pension In Nigeria by killercute16(m): 12:25pm On Aug 27, 2015 |
Ok |
Re: 10 Things You Need To Know About Pension In Nigeria by jamesbanjo(m): 12:25pm On Aug 27, 2015 |
Nice tips for upcoming pensioners .... Dat aside dz weather na die o ![]() |
My Boss Is Pushing Me To His Wife / She's Dark, Beautiful And A Female Barber (Photos, Video) / SUBEB: My Mother Was Cheated And Harassed At Her Workplace
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 39 |