The Pension Reform Act (PRA) 2014 has made the opening of retirement savings accounts (RSAs) by prospective qualified RSA holders simple and seamless.
Before implementing the Contributory Pension Scheme (CPS) in 2004, there were no formal legislative requirements for mandatory pension contributions within the private sector. Pension benefits were primarily reserved for public sector employees and select large-scale private corporations. Within the private sector, retirement benefits were generally limited to a one-time gratuity payment for departing staff.
The CPS mandate now requires both public and private sector workers to enroll in the scheme. While it is customary in the public sector for employees to qualify for pension benefits after a specified duration of service, typically five years, the private sector necessitates regulatory measures in order to ensure compliance.
As an employee, it is imperative to open an RSA and ensure your employer remits your monthly pension contribution which is partly deducted from your monthly salary to your Pension Fund Administrator (PFA). That is the position of the law.
Opening an RSA as an individual, whether in paid employment or self-employed, is free and should not be seen as cumbersome.
We have, however, made a list of all the requirements that are needed to have a seamless and hitch-free process for anyone that hopes to open an RSA with any Pension Fund Administrator (PFA):
- First name
- Middle name
- State of Origin
- Local Government of origin
- Date of birth
- Place of birth
- National Identification Number (NIN)
- Email address
- Phone Number
- Next of kin (NOK) details (Full name, address, relationship status and Phone Number)
- Employment details
- Passport photo (hard or soft with white background)
- Documents Required
- Appointment letter
- NIMC slip
- Birth certificate/ declaration of age
The above list of requirements is what is required on a typical RSA form. Therefore, it is important to have them handy and ready for a seamless account opening process.
To open an RSA and Micro Pension Account for yourself or you need assistance with RSA account opening either for yourself or your organization, you can click here and we will be glad to help you at no cost.
The benefits of opening an RSA account are numerous. We have written about it extensively in our earlier publications. Click here to read. If you are an employer of labour, read about the benefits for you here
For more enquiries about pension-related matters under the Contributory Pension Scheme in Nigeria, you can talk or schedule an online appointment with a pension expert here.