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The Contributory Pension Scheme (CPS) Retirement Pack is a joint publication of the National Pension Commission (PenCom) and the National Insurance Commission (NAICOM). The Pack is a guide for prospective retirees under the CPS. It provides information on the two modes of accessing retirement benefits: Programmed Withdrawal (PW) and Retiree Life Annuity (RLA). The Retirement Pack helps would-be retirees to make informed decisions.
Pension Fund Administrators (PFAs) are mandated to make available the Retirement Pack to potential retirees to guide them towards a smooth retirement process. The PFAs are to host the Retirement Pack on their websites for easy access to potential retirees. The Pack contains Frequently Asked Questions (FAQs), features of PW and RLA and details of the roles of the prospective retirees and the PFAs in facilitating the payment of retirement benefits.
As contained in the CPS Retirement Pack, PW is a product offered and administered by the PFAs under the regulation and supervision of PenCom. PW offers a retiree the option of a lump sum and regular monthly or quarterly pension payments. In contrast to the PW is the RLA, a product of Life Insurance Companies regulated by NAICOM. Like PW, monthly or quarterly payments are made to the retiree who chose RLA.
The retiree under PW enjoys periodic pension enhancement resulting from increased investment returns. Furthermore, retirees under PW may move to RLA after 12 months of being under PW. Finally, under PW, if a retiree dies, the balance in his RSA is paid to the legal beneficiary. Depending on the RLA product, there may also be periodic pension enhancements. It is pertinent to note that a retiree on RLA cannot move to PW. The retiree can only move to another RLA provider after at least two years with his existing provider.
RSA holders with at least six months to retirement should acquaint themselves with the modes of accessing their retirement benefits. Furthermore, RSA holders should get all documents required to access their benefits ready. The documents include a Notice of Retirement from the Employer, a current Payslip, and Evidence of Accrued Rights or acknowledgement of Indebtedness (for employees of Treasury Funded government agencies). The retirement Pack provides the list of required documents. So, the first step for a prospective retiree is to obtain the Pack from his PFA.
RSA holders who are already retired should approach their PFA and get a Data Confirmation letter and Standard Retirement Notification. After that, they can choose their preferred mode of pension payment and apply for their retirement benefits.
Retirees may visit their PFAs’ websites to download the retirement pack or physically visit the PFAs to obtain it. Should a retiree under PW have complaints or concerns, he should direct such matters to his PFA. Still, if the retiree is not satisfied with the response of the PFA, he can escalate the issues to PenCom for intervention. Similarly, a retiree under RLA is expected to contact his RLA provider on any matter regarding his benefits. If not satisfied, he can escalate the issue to NAICOM for resolution.
In conclusion, PenCom remains committed to ensuring all RSA holders receive their retirement benefits as and when due.
