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Frequently Asked Questions

Frequently Asked Questions

CAN I MOVE MY ACCOUNT FROM ONE PFA TO ANOTHER?

An employee or contributor has the freedom to move his account, once a year, from one PFA to another without giving any reason(s).


WHAT WILL HAPPEN TO EXISTING PENSIONERS IN THE PRIVATE SECTOR?

Pension Boards in the private sector existing before the coming into force of the Pension Reform Act 2004 will continue to administer the pensions of the existing pensioners and the National Pension Commission will supervise such boards.


WHO IS COVERED BY THE NEW PENSION SCHEME?

The new pension scheme covers all employees in the public service of the Federation, the Federal Capital Territory and the private sector of the economy.


HOW DOES MOVEMENT FROM ONE EMPLOYMENT TO ANOTHER AFFECT PENSION?

Movement from one employment to another does not affect pension under the new scheme. The reform has removed the bottleneck associated with transfer of service from one organisation or sector to another, especially with regard to qualification for pension and the sharing formula for payment of pension as between employers.


DOES THE PENSION REFORM ACT REFLECT THE APPLICATION OF THE PRINCIPLES OF TRANSPARENCY AND ACCOUNTABILITY?

Yes. The new pension scheme entrenches the principles of transparency and accountability as reflected in the reporting requirement of the PFAs and PFCs to both the contributor and the National Pension Commission. An employee has the right to choose who manages his RSA and the right to receive statements of his account on quarterly basis […]


WILL THE PFA CHARGE FEES FOR THEIR SERVICES?

The PFA will charge fees for the services being rendered on the RSA subject to such guidelines as may be issued by the National Pension Commission from time to time.


WHAT WILL HAPPEN TO EXISTING PENSIONERS IN THE PUBLIC SECTOR?

In the public service, Pension Departments have been created to carry out the functions of the relevant pension boards or offices in the public service of the Federation and Federal Capital Territory with a view to making regular and prompt payment of pension to existing pensioners.


WHAT ARE THE MAIN FUNCTIONS OF THE NATIONAL PENSION COMMISSION?

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.


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