The Contributory Pension Scheme (CPS) which commenced in 2004 is fully funded, privately managed, with third party in custody of the funds and assets and is based on individual accounts. It ensures that everyone who has worked receives his/her retirement benefits as and when due.

Yes, it is backed by the Pension Reform Act, 2014 as amended.

The National Pension Commission regulates and supervises the CPS. This body is also responsible for licensing and regulating the activities of Pension Fund Administrators (PFA) and Pension Fund Custodians (PFC), as well as overseeing the all policies and guidelines connected to Pension Matters.

The scheme is mandatory for employees of Employees of the Federal Government, State Governments, Federal Capital Territory (FCT), and Private sector organizations with three or more employees.

As an employee or contributor, you are required to open a Retirement Savings Account (RSA) with any of the licensed Pension Fund Administrators (PFAs), such as Norrenberger Pensions Limited.

• For those under the Contributory Pension Scheme (CPS): your employer is responsible for remitting both your contribution and theirs into your RSA.
• For individuals on a Personal Pension Plan (PPP): you are responsible for remitting your own contributions directly.

Once your RSA is opened:

• You contribute: 8% of your monthly emolument.
• Your employer contributes: an additional 10% of your monthly emolument into your RSA.
• Personal Pension Plan (PPP): There is no fixed rate, you may contribute as you deem fit, based on your personal savings goals This combined contribution ensures continuous savings towards your retirement.

Yes, it will be contributed as what is termed Additional Voluntary Contributions

Every employer is required by law to remit both the employer part of the pension contribution and the employees into the employee’s Retirement Savings Account not later than seven days from the date of payment of monthly salaries 

They are Shari’ah- compliant funds also called ethical funds. It is only investments that are Shariáh compliant that are permitted in these funds.

The PFA invests your contributions in accordance with the guidelines of PENCOM. Income on the investments is credited to your RSA.

Under the current regulations, there is a maximum monthly charge of NGN100 Admin fee and N5 VAT for every monthly contribution. Kindly note that PFA Charges for the services provided on the RSA are determined by the guidelines as provided by PENCOM per time.

The Government cannot tamper with the pension funds in your RSA, because the Government cannot have access to the account. Besides, the Government is primarily concerned with ensuring the safety of the money in your RSA through the enforcement of strict rules and regulations.

The Employer Code must be obtained before a PIN can be generated. However, for a Personal Pension contributor, this is not required

The required documents include Copy of CAC certificates, Tax Identification Number (TIN), Company’s Business Address and Nature of Business.

Yes. Where an employer chooses to bear the full responsibility of the Scheme, the employer contribution shall not be less than 20 percent of the monthly emolument of the employee.

No, all interest, dividends, profits, investment and other income accruable to pension fund and amount payable as a retirement benefit shall not be taxed.

Below are the following documents that would be needed:

• Letter of Administration issued from high court/enrolment order/will admitted to probate stating the legal beneficiary/beneficiaries.
• Medical certificate of the cause of death issued by a certified physician.
• Certificate of death registration obtained from National population commission
• Letter of introduction from deceased employer stating the date of death/birth, it should also introduce the next of kin.
• Valid Means of Identification and passport photograph of beneficiary(ies)

Withdrawals are permitted upon retirement from the age of 50years. However, there may be cases where an RSA holder retires before the age of 50 years due to physical or mental incapacity. Such person is allowed to access his/her RSA. Also, when an individual loses his/her job and remains out of job for not less than four months, such individual is permitted to withdraw up to 25% of his/her RSA balance.

Yes, you can. Provided the following conditions are met:
1. A formal letter must be written to your employer requesting confirmation of their commitment to remit the outstanding contributions.
2. The employer must also provide a written assurance that remittances will resume promptly.

Under the Pension Reform Act 2014, an employee or contributor is allowed to transfer his RSA from one PFA to another once in a year without having to tender any reasons for the change.

RSA Transfer is the transfer of an individual’s Retirement Savings Account (RSA) from one Pension Fund Administrator (PFA) to another, processed through the RSA Transfer System (RTS).

An RSA holder is only allowed to transfer his/her RSA once every 365 days (12 calendar months) as stipulated in Section 13 of the Pension Reform Act 2014 (PRA 2014).

This refers to the current PFA, from which an RSA is being moved to a Receiving PFA.

The RSA holder must ensure that his/her personal details (Biometrics & Biodata) have been recaptured and updated on the Enhanced Contributor Registration System (ECRS). This also entails providing his/her National Identity Number (NIN) to the current PFA. (This requirement only applies to contributors that registered before 1 July 2019). ii. Thereafter, the RSA holder should approach the receiving PFA and initiate the transfer request by providing his/her RSA PIN, Surname, Current Telephone Number and Email address. iii. After successful validation of the biodata, the RSA holder’s fingerprint will then be captured to authenticate his/her identity and conclude the transfer request. iv. The receiving PFA prints 2 copies of the confirmation slip, which should be signed by the RSA holder as proof that he/she initiated the transfer. A copy of the confirmation slip will be given to the RSA holder while the other copy is retained by the receiving PFA.

The RSA holder needs to provide the following details to the receiving PFA to enable him/her to transfer his/her RSA from his current PFA: i. Surname. ii. RSA PIN. iii. Current Telephone Number. iv. Email address (not compulsory but highly desirable for receiving updates on the status of the RSA transfer request). v. Fingerprint of the RSA holder, which should be captured live by the receiving PFA.

An employee or contributor has the freedom to move his account, once a year, from one PFA to another.