IMPLEMENTATION GUIDELINES ON RETIREMENT SAVINGS ACCOUNT (RSA) MULTI-FUND STRUCTURE
Guideline · Finance
Guidelines govern the operation of the Retirement Savings Account multi-fund structure under the Contributory Pension Scheme. They target RSA contributors and Pension Fund Administrators to manage fund assignments and investments based on age and risk. This seeks to align investments with contributors' life stages for better retirement outcomes.
IMPLEMENTATION GUIDELINES ON RETIREMENT SAVINGS ACCOUNT (RSA) MULTI-FUND STRUCTURE
What Is This Policy?
PenCom guidelines governing the operation of the four-tier RSA fund structure (Fund I through Fund IV), including how contributors are assigned to funds, how they may switch, and how PFAs must manage each fund's distinct investment mandate.
Who Does It Target?
All RSA contributors under the Contributory Pension Scheme Pension Fund Administrators managing the multi-fund structure PenCom oversight and supervision teams HR managers advising employees on fund selection
What Does It Aim to Achieve?
Align pension fund investment risk with the life stage of each contributor by offering age-appropriate fund options, improving retirement outcomes through better risk-adjusted returns.
Key Features
Fund Structure: Four funds with distinct risk profiles: Fund I (highest risk, highest return potential) for younger workers, down to Fund IV (lowest risk) for retirees. Default Allocation: Defines the default fund allocation based on contributor age where no fund selection is made. Switching Rules: Contributors may switch funds subject to prescribed limits on frequency and timing. Reporting: PFAs must provide contributors with quarterly statements showing fund performance and balance.
Current Status
Rollout Stage: Active Coverage: All RSA contributors nationwide Beneficiaries: Pension contributors across all age groups Funding: Managed within the RSA structure
How to Access
Contributors may select their preferred fund by notifying their PFA Default allocation applies if no selection is made Switching requests must be processed within the prescribed timelines Application method: Contact your PFA to select or change your fund allocation.
Important Terms
Fund selection should reflect the contributor's age and risk tolerance Frequent switching may not be in the contributor's best interest PFAs must educate contributors on the multi-fund structure at account opening
Official Resources
Website: https://www.pencom.gov.ng Contact: National Pension Commission (PenCom)
Legal Framework
Issued under the Pension Reform Act 2014, which established the National Pension Commission (PenCom) and the Contributory Pension Scheme. Draws authority from Section 98 of the Pension Reform Act and the Investment Regulations for Pension Fund Administrators issued by PenCom.