Retirement Savings Account
The Pension Reform Act 2014 mandates every employee to open a Retirement Savings Account (RSA) with a licensed Pension Fund Administrator (PFA), into which monthly pension contributions will be paid in the ratio 10%:8% respectively. 10% contribution by the employer and 8% contribution by the employee. Upon registration, a certificate of registration stating the account holder's Personal Identification Number (PIN) and other relevant account information will be issued to the RSA Holder. The RSA Holder is then classified by the Pension Fund Administrator into the various fund's structure introduced by the National Pension Commission (PenCom) in accordance with his/her age, the risk profile, and/or choice, as the case may be.
You are eligible to enroll under the Contributory Pension Scheme if you work for the Federal Government, Federal Capital Territory, and Private organization employing at least three people and State that has joined the Scheme. The law expects every employee to open and maintain a Retirement Savings Account (RSA) with a Pension Fund Administrator (PFA) of his or her choice.
An employee can move from one employer to another and from one PFA to another (when the transfer window opens) with the same PIN. This movement shall not be more than once in a year unless or as otherwise prescribed by the National Pension Commission (PenCom).