Pension Administrators to Execute Enhancement for Retirees Under CPS
By Adedapo Adesanya
Pension Fund Administrators (PFAs) have been directed by the National Pension Commission (PenCom) to implement the second phase of the pension enhancement for retirees on programmed withdrawal under the Contributory Pension Scheme (CPS).
The pension regulator disclosed this in a statement signed by Mr Peter Aghahowa, in Abuja, adding that the exercise is for CPS retirees who have accumulated significant growth in their Retirement Savings Accounts (RSAs).
It was also disclosed that the scheme was eligible for people who retired between July 2007 and December 2017.
PenCom also urged the retirees to contact their respective PFAs to confirm their eligibility and complete requisite documentations.
“The National Pension Commission, hereby, informs the general public that all Pension Fund Administrators (PFAs) have been directed to implement the second edition of the pension enhancement exercise for retirees on Programmed Withdrawal mode of retirement.
“The pension enhancement is for Contributory Pension Scheme (CPS) retirees who have accumulated significant growth in their Retirement Savings Accounts (RSAs) and had retired between July 2007 and December 2017,” the statement read in parts.
The CPS is a structure which commenced in July 2004 which was implemented to ensure that every worker receives his retirement benefits as and when due.
The scheme is contributory in nature, meaning that the employer will contribute 10 percent, while the employee will contribute 8 percent to make up the 18 percent minimum monthly contribution.
It is, however, stipulated that an employer may however elect to contribute the entire 18 percent on behalf of its employees as well as other voluntary contributions are allowed.
The CPS is mandatory for employees of the Federal Government, the Federal Capital Territory (FCT) and private sector organizations with three or more employees.