Pension

CPS: PenCom Issues Guidelines On Voluntory Contributions

Hajia Aisha Dahir-Umar,Acting DG PenCom

 

 

 

 

BY NKECHI NAECHE-–In furtherance of carrying out its mandate of regulating the National Pension Commission (PenCom) now Friday issued new guidelines  to regulate the operation of voluntary pension contributions (VC).

A statement made available by Peter Aghahowa, Head, Corporate Communications Voluntary Contributions shall be non-obligatory contributions made by any employee in the formal sector through the employer.

The statement added that the objectives of the released guidelines are “to establish of uniform set of rules for the operation of Voluntary Contributions and eligibility criteria for participation in the Contributions.
“To Provide the procedure for making Voluntary Contributions as well as necessary safeguards and modalities for its withdrawals
” To utilize Voluntary Contributions for the purpose of enhancing future retirement benefits for active or mandatory contributors.
“To encourage retirees under CPS to utilize part or all of the Voluntary Contributions to augment their existing pension.
“To also assist retirees under defunct defined benefit scheme, exempted persons from the CPS and foreigners to save in order to cater for their livelihood during old age.”

The Commission further reminded contributors to be guided by the guidelines and encourages them to direct all their enquiries pertaining the Voluntary Contributions to their respective Pension Fund Administrators.

The Pension Reform Act (PRA) 2014 allows employees to make Voluntary Contributions into their Retirement Savings Account (RSA) in addition to their mandatory pension contributions, with the sole aim of enhancing their retirement benefits.

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