NATIONAL PENSION COMMISSION A GUIDE FOR RETIREES UNDER THE CONTRIBUTORY PENSION SCHEME
Act · Education
A Guide explains the options and processes for accessing retirement savings under Nigeria's Contributory Pension Scheme. It targets employees nearing retirement and HR managers. This helps them make informed decisions about their benefits.
NATIONAL PENSION COMMISSION A GUIDE FOR RETIREES UNDER THE CONTRIBUTORY PENSION SCHEME
What Is This Policy?
A plain-language guide produced by PenCom explaining the options, processes, and rights of employees retiring under the Contributory Pension Scheme (CPS) and how to access their retirement savings.
Who Does It Target?
Employees approaching retirement age Retired public and private sector workers PFAs providing retirement planning services HR managers advising employees on retirement
What Does It Aim to Achieve?
Ensure retiring employees understand their retirement benefit options under the CPS, access their savings without exploitation, and make informed decisions about programmed withdrawals or annuities.
Key Features
Retirement Benefit Options: Explains the two main retirement options: programmed withdrawal (managed by PFAs) and life annuity (purchased from insurance companies). Lump Sum Withdrawal: Explains eligibility for a lump sum of up to 25% of RSA balance at retirement. Application Process: Step-by-step guidance on applying for retirement benefits through the PFA. Rights at Retirement: Explains retirees rights including the right to switch PFAs before retirement and the right to choose their retirement benefit option.
Current Status
Rollout Stage: Active Coverage: All CPS contributors approaching retirement Beneficiaries: Retiring employees in public and private sectors Funding: PenCom operational budget
How to Access
Access guide freely at https://www.pencom.gov.ng or from your PFA Contact PenCom's retiree helpline for personalised guidance Start the retirement process at least three months before retirement date Application method: Initiate retirement through your PFA by submitting the required retirement documents.
Important Terms
The programmed withdrawal and annuity decision is irreversible once made in most cases RSA cannot be accessed before age 50 in most circumstances Ensure PFA has your current contact details and bank account for benefit payments
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. Derives authority from PenCom's regulatory mandate under the Pension Reform Act and operates alongside the Investment Regulations for Pension Fund Administrators and the Guidelines for Pension Fund Operators.