Accessing retirement and terminal benefits within the contributory pension scheme (CPS) is seamlessly regulated by the National Pension Commission (PenCom).
Accessing retirement and terminal benefits within the contributory pension scheme is seamlessly regulated by the National Pension Commission . In line with the provisions of the Pension Reform Act 2014 , PenCom has established procedures and requirements for retirement savings account holders to access their retirement benefits as and when due.
Section 7 of the Pension Reform Act provides that retirement savings account holders are entitled to access their benefits upon retirement or upon reaching the age of 50, whichever comes later. Contributors have the option to withdraw a lump sum from their total RSA balances, provided that the remaining balance is adequate to secure either a programmed withdrawal or a retiree life annuity for lifetime pension benefits.
The PW offers a regular pension payment through a pension fund administrator , while the RLA, purchased from a life insurance company, provides a steady income for life. Aside from retirement benefits, the CPS also offers various other forms of payments. These payments include provisions for temporary job loss, death benefits, en bloc payments, and equity contribution for residential mortgage, among others.Programmed withdrawal is a benefit payment method by which the employee collects his retirement benefits in periodic sums spread throughout an estimated life span.
This initiative has proven instrumental in helping numerous individuals achieve their aspirations of homeownership since its inception. From January to June 2024, PenCom authorised disbursements totalling N28.52 billion to 3,539 RSA holders, facilitating their equity contributions for residential mortgages.In conclusion, accessing retirement benefits under the CPS is seamless.
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