NATIONAL PENSION COMMISSION GUIDELINES FOR TRANSITIONAL CONTRIBUTIONS FUND

Guideline · Finance

Guidelines manage pension contributions made during the transition from the old defined benefit scheme to the Contributory Pension Scheme. They target employees from that period and Pension Fund Administrators. This ensures contributions are properly transferred to Retirement Savings Accounts.

NATIONAL PENSION COMMISSION GUIDELINES FOR TRANSITIONAL CONTRIBUTIONS FUND

What Is This Policy?

Guidelines governing the management of pension contributions made during the transition period from the old defined benefit scheme to the Contributory Pension Scheme, ensuring these funds are properly accounted for and transferred.

Who Does It Target?

Employees who made contributions during the transition period Federal government as administrator of transitional arrangements PFAs receiving transferred transitional funds PenCom as the regulatory overseer

What Does It Aim to Achieve?

Ensure that pension contributions made during the transition to the CPS are not lost and are transferred to contributors RSAs, protecting their retirement savings.

Key Features

Fund Identification: Defines the categories of contributions that constitute transitional contributions fund. Transfer Process: Establishes the process for identifying, reconciling, and transferring transitional funds to RSAs. Interest Computation: Prescribes how interest on transitional funds is computed for the period between contribution and transfer. PFA Role: PFAs must credit transferred transitional funds to the correct RSAs upon receipt.

Current Status

Rollout Stage: Active - transitional transfer process ongoing Coverage: Federal government employees who made contributions during the transition period Beneficiaries: Federal government employees transitioning from old to new pension scheme Funding: Federal Government

How to Access

Affected employees must have a valid RSA with a licensed PFA Verify RSA balance to confirm transitional contributions have been credited Report discrepancies to your PFA and PenCom Application method: Engage PenCom or your PFA to check status of transitional contributions.

Important Terms

Transitional contributions attract interest from the date of contribution Discrepancies in credited amounts must be formally reported to PenCom Once transferred, transitional funds are subject to normal CPS rules

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.

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