BY NKECHI NAECHE-ESEZOBOR–A total of N3.1 billion was paid to 187 Retirement Savings Account (RSA) holders for assessment of residential mortgage as at the end of July 2023.
This was disclosed by the Executive Secretary/Chief Executive Officers, Pension Fund Operators Association of Nigeria (PenOP) Agudah Oguche, at a one day workshop organised by the National Pension Commission ( PenCom) for journalists in Lagos.
He said for contributors under the CPS to be eligible to use their RSA balance for acquisition of residential mortgages, he/ she must have contributed for five years (60 months) cumulative of employer and employee’s mandatory contributions.
He put the maximum allowed at 25 per cent of the RSA balance, noting, “where 25 per cent of RSA balance is more than equity contribution, the RSA holder can only access the amount equivalent to equity contribution required.
The Commission on 23rd September 2022 approved the issuance and immediate implementation of the guidelines on Accessing Retirement Savings Account (RSA) balance towards payment of Equity Contribution for Residential Mortgage.
According to the Commission, the approval is in line with section 89 (2) of the Pension Reform Act 2014 (PRA 2014), which allows RSA holders to use a portion of their RSA balance towards payment of equity for residential mortgage.
Subsequently, the commission released a list of 34 primary mortgage banks to participate in the use of the RSAs for residential mortgage.
