FRAMEWORK AND IMPLEMENTATION GUIDELINES FOR RSA RETIREE FUND
Framework · Education
A Framework manages the RSA Retiree Fund for contributors nearing retirement by investing in low-risk options. It targets people aged 50 and above, pension fund administrators, and oversight officers. The framework protects retirement savings through capital preservation.
FRAMEWORK AND IMPLEMENTATION GUIDELINES FOR RSA RETIREE FUND
What Is This Policy?
A framework governing the management of the Fund IV RSA Retiree Fund, a dedicated low-risk investment fund within the multi-fund structure for contributors at or approaching retirement age.
Who Does It Target?
Contributors aged 50 and above or within three years of retirement PFAs managing Fund IV for retirees PenCom Fund IV oversight officers Financial advisers assisting retirees with fund selection
What Does It Aim to Achieve?
Protect the accumulated retirement savings of contributors approaching retirement by investing them in lower-risk, capital-preservation instruments aligned with their short time horizon.
Key Features
Conservative Investment Profile: Fund IV is invested predominantly in government securities and money market instruments with minimal equity exposure. Automatic Transfer: Contributors approaching retirement are automatically moved or may voluntarily move to Fund IV from higher-risk funds. Benefit Payment Linkage: Fund IV serves as the source for programmed withdrawals upon retirement. Liquidity Management: Fund IV must maintain sufficient liquidity to meet regular retirement benefit payment obligations.
Current Status
Rollout Stage: Active Coverage: All RSA contributors eligible for Fund IV Beneficiaries: Retirees and pre-retirees under the CPS Funding: Managed within the RSA structure
How to Access
Eligible contributors may request transfer to Fund IV at any time Retirees are automatically placed in Fund IV upon accessing their retirement benefits Contact your PFA to confirm your current fund allocation Application method: Request fund transfer through your PFA.
Important Terms
Moving to Fund IV before retirement is voluntary for contributors not yet at retirement age Fund IV yields are generally lower than higher-risk funds; the trade-off is capital preservation Contributors cannot switch out of Fund IV back to higher-risk funds after a certain point in the retirement process
Official Resources
Website: https://www.pencom.gov.ng Contact: National Pension Commission (PenCom)
Legal Framework
Issued under the regulatory powers of the National Pension Commission (PenCom) pursuant to the Pension Reform Act 2014, which established the multi-fund structure. Operates alongside the National Pension Commission Act, the Investment Regulations for Pension Fund Administrators, and the Portfolio Management Rules. Aligns with OECD Guidelines on Pension Fund Asset Management and IOPS Principles of Private Pension Supervision.