Who receives the monthly pension contributions remitted by the employer for employees?
Pension contributions are paid directly to the PFC by the employer to be held on the order of the PFA. The PFC notifies the PFA immediately upon receipt of the contributions.
What are the rates of monthly pension contribution under the CPS?
The minimum rate of contributions is 18 per cent of the employee’s monthly emoluments where 10 per cent is contributed by the employer and eight per cent is contributed by the employee.
Can an employer contribute more than the stipulated 10 per cent minimum pension contribution?
Section 4(4) of the PRA 2014 stipulates that an employer may, notwithstanding any of the provisions of the Act, agree on payment of additional benefits to the employee upon retirement or elect to bear the full responsibility of the scheme provided the total amount contributed by the employer should not be less than 18 per cent of the employee’s monthly emoluments.
What happens to the RSA of a person who resigns from an organisation operating in Nigeria and takes up appointment with an organisation outside Nigeria?
Where a person resigns from an organisation in Nigeria and takes up appointment with an organisation outside Nigeria, such employee is entitled to make arrangements with the new employer to continue remitting his pension contributions to his RSA in Nigeria. In the event that such employee chooses to discontinue contribution under the scheme in Nigeria or where the new employer has an entirely different pension arrangement, he can access his RSA upon retirement or attaining the age of 50 years, whichever is later.
Can employees on temporary, contract or tenured appointments join the CPS?
Employees on temporary, contract or tenured appointments may decide to join the CPS by opening RSAs and make monthly pension contributions.
Can self-employed persons participate in the scheme?
The PRA 2014 allows self-employed individuals to make voluntary contributions under the scheme towards their retirement. The Micro Pension Scheme is being tailored for this category of participants.