Frequently Asked Questions

Frequently Asked Questions

WHAT ARE THE MINIMUM FINANCIAL REQUIREMENTS FOR A PFA OR A PFC LICENCE?

An applicant PFA must have a minimum paid up share capital of N150,000,000 while an applicant PFC must have a minimum paid up capital of N2,000,000,000 and shall be a licensed financial institution with a minimum net worth of N5,000,000,000 unimpaired by losses and has total assets of N125,000,000,000 or is wholly owned by a […]


HOW WILL THE ACCRUED BENEFITS UNDER EXISTINGFUNDED DEFINED BENEFITS SCHEMES BE HANDLED?

In the case of funded pension schemes in the public service of the Federation and the private sector, employers shall undertake actuarial valuation of the employee’s accrued benefits and credit the Retirement Savings Accounts (RSAs) of its employees with such funds and in the event of any deficiency, the shortfall shall become a debt and […]


WHAT IS THIS NEW PENSION SCHEME?

This new pension scheme is contributory, fully funded, privately managed, third party custody of the funds and assets and based on individual accounts. It ensures that everyone who has worked receives his/her retirement benefits as and when due.


IS THE RSA OPERATED LIKE A BANK ACCOUNT?

The RSA is similar to a bank account except that no contributor can withdraw money from the RSA before his/her retirement. The PFA is required to invest the money and issue statements of account at least once every quarter to the contributor.


IS THERE ADEQUATE REPRESENTATION OF ALL STAKEHOLDERS ON THE BOARD OF THE COMMISSION, OR IS IT DOMINATED BY GOVERNMENT APPOINTEES?

There is adequate representation of relevant stakeholders in the Board of the National Pension Commission, which comprises of representatives of the Government, Nigeria Labour Congress, the Nigerian Union of Pensioners and the Nigerian Employers Consultative Association.


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.


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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