Pensions n Retirement | |
Pensions n Retirement | |
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Tuesday, November 12, 2019
/01:08 PM / By PENCOM / Header Image Credit: Naija News
Section
11(1) of the Pension Reform Act (PRA) 2014 mandates every eligible employee to
maintain a Retirement Savings Account (RSA) with a Pension Fund Administrator
of his/her choice.
The Act
also mandates every employer to open a nominal RSA within six months of
assumption of duty for the employee who tails to open an RSA in accordance with
section 11(5) of the PRA 2014. Employers are therefore required to ensure that
RSAs are opened for all their employees.
Prior
to the PRA 2014, Death Benefits Accounts (DBA) have been used by legal
beneficiaries to access the benefits of the deceased employees who did not open
RSA during their lifetime. However, pursuant to the above cited statutory
provisions, this practice is no longer valid.
Accordingly,
the general public is hereby notified that the processing of DBA for death
benefits claims would be discontinued with effect from 1 February,
2020. All PFAs have been directed to stop the opening of
DBAs with effect from 31 January, 2020
The
National Pension Commission reiterates the need for all employees to ensure
that they open RSAs with any PFA of their choice. A list of licensed PFAs can
be found on the Commission's website. www.pencom.gov.ng
For
further enquiries. please contact:
The Director-General
National Pension Commission
Plot 174, Adetokunbo Ademola
Crescent,
Wuse II
PMB 5170
Abuja, Nigeria
email: info@pencom.gov.ng
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