The balance in the RSA will be used to procure an annuity that provides regular income to the contributor or fund a programmed withdrawal.
NSITF will only handle pension matters of existing pensioners and those exempted by the Act who have contributed to the NSITF under the supervision of the National Pension Commission.
Most of the old pension schemes were not fully funded. Therefore, upon retirement, there were no ready funds to pay the pensioners. The new pension scheme is fully funded. Money is contributed into individual employee’s Retirement Savings Account (RSA) and when he/she retires, there will be money in his/her RSA to pay his pension.
All those managing or keeping custody of pension funds and assets will be licensed and continually regulated and supervised by the National Pension Commission.
The Pension Fund Administrator cannot collect or spend the pension money in the RSA.
The Act did not stipulate any retirement age. It depends on each employee’s terms and conditions of employment.
NSITF will continue to provide social security services other than pension to the country.
The National Pension Commission issues licences to PFAs and Custodians, regulates their activities and generally formulates, directs and oversees the overall policy guidelines on pension matters in Nigeria.