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What you need to know about RSA Fund VI (Non-interest Fund)

Fund VI also known as non-interest fund is established to cater for the RSA holders who want their RSA fund to be invested in non-interest bearing and ethical investment instruments.

The creation of the fund is in line with the multi-fund structure introduced by PenCom and currently operational in the pension industry. There are currently 5 different types of pension funds under the CPS in Nigeria. The introduction of the non-interest fund takes the total to six.

Here are some basic things you need to know about the non-interest fund

  • The establishment of fund 6 is in line with the multi-fund structure.
  • Contributors in Fund I, II and III are ONLY allowed to move to Active Fund VI.
  • Contributors in Fund IV are ONLY allowed to move to Retiree Fund VI.
  • Contributors in Fund III who have reached the retirement age can move directly to Fund VI instead of Fund IV if they desire to.
  • PFAs are not allowed to invest the assets in Fund VI in the production or trading of alcohol, pornography, weaponry, gambling/betting, speculation, interest-earning ventures and other ventures of similar nature.
  • Fund VI assets are ONLY to be invested in instruments that are free from speculation and uncertainty that might lead to destruction or loss.
  • Fund VI assets are also allowed to be invested in conventional assets where a PFA is unable to find approved Non-Interest instruments. The conventional assets are to be phased out as more approved Non-Interest instruments become available.

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