In the first series of this article, we walked you through the different types of retirement available under the Contributory Pension Scheme (CPS). In this second article, we will be discussing what an RSA holder intending to retire soon should do in order to avoid any form of delays or impediments some RSA holders face especially whenever they want to access any form of retirement benefits under the CPS.
Pre-Retirement To-Dos
An intending RSA holder who is about to retire is expected to inform his or her PFA of this occasion at least 6 months to the retirement period. This is to allow the PFA to prepare and make available all necessary documentation for seeking approval for payment from the industry regulator.
This period will also avail the PRA and the RSA holder to sort out any missing items that could cause a delay in payment and make necessary corrections where needed.
However, where the RSA holder fails to do this, it is pertinent for the PFA to reach out to such RSA holder at least four months before the expected date of retirement of the RSA holder. All efforts should be made by the PFA to reach out to the RSA holder and ensure that all necessary documentation is collated and sorted out before the date of retirement of the RSA holder.
Required Documents for Different types of Retirements
All original documents must be presented to the PFA for sighting, while the PFA will thereafter retain the photocopy thereof. The following documents are required for the various types of retirement under the CPS
Mandatory Retirement: Any RSA holder who retires mandatorily, will be required to present the following documents:
- The official Notice/Acceptance of Retirement from his/her employer.
- Last three (3) payslips or any other evidence of total annual emolument.
- Enrolment slip (for employees of FGN Treasury-Funded MDAs).
- Any other relevant documents as may be specified from time to time by the Commission.
Compulsory Retirement: Any RSA holder who retires in line with the terms and conditions of his or her employment is said to have retired compulsorily and will be providing the following documents for processing his or her retirement benefits:
- The Notice/Acceptance of Retirement from the employer.
- Last three (3) payslips or any other evidence of total annual emolument.
- Any document confirming that retirement is in accordance with terms and conditions of employment such as Letter of Employment, Condition of Service, or Staff Hand Book.
- Any other relevant document as may be specified from time to time by the Commission.
Retirement on Medical Grounds: This will occur when an RSA holder has been certified on medical grounds to be mentally or physically incapacitated by a qualified medical board. The following documents would be needed to process his or her Retirement benefits:
- Medical Certificate certifying that he/she can no longer continue with the employment due to incapacitation. The certificate shall be issued by a qualified physician or a properly constituted Medical Board.
- Where the employee is not in a position to submit the medical certificate in person, his representative/ NOK shall do so on his/her behalf.
- The letter of notification/acceptance of retirement issued by his/her employer also confirming that the retirement is on medical grounds.
- Last three (3) payslips or any other evidence of total annual emolument or any evidence of total annual remuneration.
- Enrolment slip (for employees of FGN Treasury-Funded MDAs).
Temporary Loss of Employment: An RSA holder of less than the retirement age of 50 who has lost his/her job or temporarily is out of job for a minimum of 4 months consecutive period, is qualified to enjoy a temporary retirement benefit also known as “25% payment”. To process such payment, the following documents must be presented to the PFA:
- Letter of acceptance of resignation or disengagement issued by the employer.
- A formal request for withdrawal of 25% of RSA balance.
- Any other relevant document as may be specified from time to time by PenCom.
Please note that where the employer fails/refuses to accept the resignation letter from the employee as stated above, the PFA shall write the employer confirming the employee’s resignation and ensure that an acknowledgement copy is kept as proof of receipt.
However, where the employer fails to respond to the PFA’s inquiry in (b) above within 30 days, the employer’s refusal is taken as acceptance of the employee’s resignation for the purpose of benefits payment.
Micro Pension Plan Contributors
For those contributors in the Micro Pension Plan (MPP), they will have to present the following documents to process their retirement benefits:
- Written application/Completion of the standard application form.
- Valid means of identification.
- Where the contributor has no payslip, the prevailing National Minimum Wage shall be used to determine the Annual Total Emolumnet for the purpose of computing periodic pension.
- Any other relevant document as may be specified from time to time by the Commission.
