Frequently Asked Questions

What is the Pension Reform Act 2004 (PRA 2004) about?
What is a retirement savings account (RSA)?
Is the RSA operated like a bank account?
Can I register with two or more PFA and get PINs from them?
What ensures the safety of my contributions?
Who is a Pension Fund Custodian?
What is the difference between a PFA and a PFC?
Who is covered by the new pension scheme?
Can organizations with less than 5 people participate?
What is Voluntary Contribution?
Who is exempted from the new pension scheme?
Does an employee who has 3 years and 1 month to retire come under the old scheme or the new scheme?
Is the new pension scheme mandatory for all categories of employers and employees covered under the act?
Is the private sector pension being merged with the public sector?
What is the main objective of the new pension scheme?
How is the new pension scheme different from the old pension scheme?
Will private sector pension schemes be allowed to continue?
What is the rate of monthly contribution into the new scheme?
Can the employer make the total contributions on behalf of the employee?
Will the contributions lead to a decrease in my monthly emoluments?
Are pension contributions paid to the PFA?
What does fully funded pension scheme mean?
How does movement from one employment to another affect pension?
Can my employer force me to use a PFA of its choice?
Can I transfer my RSA from one PFA to another?
Can I use my RSA as collateral for a loan?
Can I make contributions from Overseas?
What happens when there is a change of government?
What happens if a PFA fails or is liquidated?
Who can I complain to if I have a problem with my PFA?
What is the role of the government in the new pension scheme?
Can the government tamper with the money in my RSA?
Can Inflation or Devaluation of Naira erode the value of my pension contributions?
What is the Minimum Guaranteed Pension under the new scheme?
Does the Pension Reform Act reflect the application of the principles of transparency and accountability?
Do PFAs, PFCs and regulator charge fees for their services?
What other insurance cover does the new scheme provide for employees?
How would my contribution be remitted by my employer?
What can I do where my employer fails to remit my monthly contribution?
Will tax be paid on the profit made from trading with the money in the retirement savings account (RSA)?
How will the new pension scheme help the economy?
When will I have access to the money in my RSA?
Will gratuity be paid under the new scheme?
Should gratuity be included in the actuarial valuation for the purposes of determining accrued pension rights to be transferred from the old scheme into the RSA?
Can I withdraw any portion of the amount in my RSA before retirement?
What happens to my contribution when I die?
Can a contributor move his contributions under NSITF to another PFA?
Can NSITF still handle pension matters under the new pension scheme?
What happens to existing pensioners who made contributions under NSITF?

CAVEAT!

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