Payment of Retirement Benefits

Payment of Retirement Benefits

WHEN WILL I HAVE ACCESS TO MONEY IN MY RSA?

Access to the RSA will only be allowed upon retirement. If an employee retires at the age of 50 years or more he/she can have immediate access to the RSA. […]


WILL GRATUITY BE PAID UNDER THE NEW SCHEME?

Upon retirement, an employee can draw a lump sum (by whatever name called) from the balance standing to the credit of his/her RSA provided the balance after the withdrawal could […]


SHOULD GRATUITY BE INCLUDED IN THE ACTUARIAL VALUATION FOR PURPOSES OF DETERMINING ACCRUED PENSION RIGHTS TO BE TRANSFERRED FROM THE OLD SCHEME INTO THE RSA?

If at the commencement of the Pension Reform Act 2004, the employee is entitled to gratuity (if he were to retire on that date), the gratuity shall be computed and […]


CAN I WITHDRAW ANY PORTION OF THE AMOUNT IN MY RSA BEFORE RETIREMENT?

Withdrawals from the RSA can only be made upon retirement. However, where an employee makes additional or voluntary lump sum contributions into the RSA, he can withdraw such money before […]


WHAT IS PROGRAMMED WITHDRAWAL?

A programmed withdrawal is a method by which the employee collects his retirement benefits in periodic sums spread throughout the length of an estimated life span.


WHAT IS AN ANNUITY?

An annuity is an income purchased from an approved life insurance company which provides monthly or quarterly income to the retiree during his/her lifetime.


WHAT HAPPENS WHEN AN EMPLOYEE WHO HAS BEEN CONTRIBUTING UNDER THE NEW SCHEME DIES BEFORE HIS RETIREMENT?

Where an employee who has been contributing under the new pension scheme dies before his/her retirement, his retirement benefits shall be paid to his beneficiary under a will or the […]


WHAT HAPPENS TO THE BALANCE IN THE RSA AFTER ANY INITIAL LUMP SUM WITHDRAWAL?

The balance in the RSA will be used to procure an annuity that provides regular income to the contributor or fund a programmed withdrawal.


WHAT IS THE RETIREMENT AGE UNDER THE PENSION REFORM ACT 2004?

The Act did not stipulate any retirement age. It depends on each employee’s terms and conditions of employment.


WHAT IS THE MINIMUM PERIOD REQUIRED BY AN EMPLOYEE TO QUALIFY FOR PENSION UNDER THE NEW SCHEME?

There is no qualifying period for pension. If an employee works for an employer for one month, his pension contribution will be paid by the employer into the employee’s Retirement […]


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