July 2, 2019

A Retirement Savings Account (RSA) holder under the Contributory Pension Scheme (CPS) can access his/her fund under various categories. However, in doing this there are documentation requirements expected to be fulfilled as provided in the approved Regulation on Administration of Retirement and Terminal Benefits issued by the National Pension Commission (PenCom). The circumstances under which withdrawal can be made under the Contributory Pension Scheme are as listed;
  • Mandatory Retirement
  • Temporary Disengagement from Employment (Loss of Job)/Voluntary Resignation
  • Medical Grounds
  • Death
  • Foreigner
  In this piece, we will be discussing what Mandatory Retirement is, the benefits accessible by eligible customers’ vis-à-vis documentations required under the scheme. Mandatory Retirement: is a condition at which employees disengage from active service at the retirement age; after attaining the age of 50 or upon completion of the length of service based on the terms of his/her employment or contract.

The following are the types of benefits under mandatory retirement.

  • Enbloc: If the Retirement Savings Account balance is less than #550,000 at retirement, the retiree shall have full access to the balance in his/her RSA as enbloc payment.
  • Lump Sum, Programmed Withdrawal or Life Annuity: This is where fund balance in the account of RSA holder is more than #550,000 at retirement. The customer will be entitled to an initial Lump sum payment of between 25% minimum and a maximum of 50% of his/her total account balance as computed on the unique Retirement Benefit Calculator provided by PenCom while the remaining balance is used to procure a PROGRAMMED WITHDRAWAL OR LIFE ANNUITY to cater for monthly/quarterly (periodic) payments (pensions) to the Retiree over his/her lifetime.
  • Mandatory Retirement (Enbloc) Application:
  1. Official notice of retirement from employer
  2. Letter from ex-employer confirming status of outstanding remittance (accrued pension right)
  3. Age Declaration/Birth Certificate
  4. Proof of enrolment with Leadway Pensure PFA or any correspondence
  5. One passport photograph
  6. Bank Account Details (Banker’s confirmation / Statement of Account / Copy of Cheque Leaf)
  7. Official ID Card (National ID Card / Voter’s Card Int’l Passport)
  • Mandatory Retirement (Lump Sum/ Life Annuity) Application:
  1. Official notice of retirement from employer
  2. Pay-slip for the month before retirement (or any of the last 3 months) / Evidence of Annual remuneration
  3. Letter from your former employer confirming status of outstanding remittance (Accrued Pension Right/Bond certificate)
  4. Copy of the Retirement Benefit Registration Slip
  5. Age Declaration/Birth Certificate
  6. Proof of enrolment with Leadway Pensure PFA or any correspondence
  7. One passport photograph
  8. Bank Account Details (Banker’s Confirmation/Statement of Account/Copy of Cheque leaf)
  9. Appointment letter
  10. Witness Means of Identity
  11. Official ID Card (National ID Card/Voter’s Card Int’l Passport) with a copy of staff ID Card
  12. Benefit Consent Form and Programmed Withdrawal (can be gotten from us) or Annuity Policy(from Insurance Company)

Please note that all applications with complete documentation are processed and sent to The National Pension Commission (PenCom) for approval before payments are made. Benefit payment process is usually completed within 10working days from the date complete documentation is presented by our Customers.

Once your eligibility status is determined and documentation is complete, the request is forwarded to PenCom for payment approval and the retiree’s account credited subsequently once payment approval is received. For quick response to your enquiries and Pension concerns, please feel free to discuss with us via live chat here or phone lines: 01-2800800 . You can also visit any of our branch offices. We remain committed to providing you with unrivalled pension services and helping you get the most out of life.
Leadway Pensure..Your future…Our passion.
Share with friends