Benefits Administration & Payment

Benefits Administration is the process of managing and administering benefits to RSA holders who are qualified under the PRA 2014 to withdraw from their RSAs

• Normal Retirement: This is for retirees who have retired according to the terms and conditions of their employment or attained the age of 50 whichever
  comes later. This category can be grouped into three:
  • Programmed Withdrawal: For a retiree who chooses programmed withdrawal option, his details will be inputted into the computation template
    provided by PenCom to generate his monthly pension and his lumpsum, if he chooses to have a lumpsum. The details inputted into the template are:
    gender, RSA balance, Final salary and Age at retirement.
  • Annuity: For a retiree who chooses the annuity option without lumpsum and has provided his annuity agreement, his RSA balance will be transferred to his preferred insurance company. If he chooses to have a lumpsum payment, we input his details into the template provided by PenCom to determine his lumpsum payment and the balance after deducting the lumpsum and arrears will be transferred to his preferred insurance company after an annuity agreement has been provided for the remaining balance.
  • En Bloc Payment: This is for retirees who have retired according to the terms and conditions of their employment or attained the age of 50, whichever comes later but have RSA balances that are N550,000 and below. For this category, their RSA balances will be paid to them as a whole (En bloc).

• Loss Of Job: This is when an RSA holder loses his job and is unable to get another job 4 months after the loss. He is entitled to process 25% of his RSA balance
  once in his lifetime and the remaining balance when he retires provided he is able to get a new job or when he attains the age of 50.
• Retirement On Health Grounds: This is when an RSA holder quits his job after being certified to be no longer physically fit to work by a qualified medical
  board. On their recommendation, the RSA holder could retire or be laid off with the medical condition being clearly stated on the termination or retirement
  letter. With this, the RSA holder can have full access to his RSA balance even before attaining the age of 50 years.
• Death Benefit: This is processed by the beneficiaries or Next of kin of a deceased RSA holder. This is in 2 categories, we have death benefit for RSA holders
  and death benefit for employees that fell under the scheme but did not open RSAs before their death. In this case, the beneficiaries will have to open a Death
  Benefit Account (DBA) where the contributions of the deceased will be paid into and the death benefit administered.
• NSITF: This stands for Nigeria Social Insurance Trust Fund. This was in place in private organisations before the introduction of the new PRA. For those that had NSITF contributions, after receiving all necessary documents, customer care unit will request that the total contributions made by the individual be transferred to his/her RSA by Trustfund pensions. This contribution forms part of the RSA balance for RSA holders who are yet to retire but for those that are retired, it will be paid to them En bloc after seeking approval from PenCom.
• Residential Mortgage: This allows RSA holders to access up to 25% of their retirement savings account balance, towards payment of equity contribution for residential mortgage.
• Voluntary Contribution: for active contributor, all voluntary contribution by mandatory or non-mandatory contributors may access the contingent portion of their VC after one year from the date the voluntary contribution was made.
• Voluntary Contribution: for contract i.e Retirees, Exempted Contributors, Political office holder’s employee in an organization with an approved existing scheme (AES) and Foreigners may withdraw 50% of the voluntary contributions as contingent withdrawal before their employment /contract expires.
• Micro Pension: Micro Pension plan refers to an arrangement for the provision of pension to the self-employed and persons operating in the informal sector. Micro pension contributor is eligible to access the contingent portion of the RSA once a week.