NLPC PFA is an associate of NLPC ; a Pension Fund Management Consultant with over 40 years of proven integrity.
1.0 Coverage
(a) All employees in the Public Service of the Federation as defined in section 318 of the Constitution of the Federal Republic of Nigeria.
(b) All employees in the Federal Capital Territory (FCT) that are on the payroll of FCT Board and other Agencies.
(c) Private sector Organisations with 5 or more employees.
Note: (i) Any person who is not ordinarily covered or has been exempted can make voluntary contributions to the Scheme. (ii) Civil Society Organisations employees, Embassies & High Commission and International Organisations Local Employees are covered. (iii) States and Local Governments employees are not covered by the provisions of the Act.
2.0 Exemptions:
(a) Employees in a pension scheme, who have 3 or less years to retire.
- No contributions to be made
- Benefits as per the existing Scheme scale of benefit.
(b) Judicial Officers as per section 291 of the Nigerian Constitution
- No contributions to be made
- Benefits as per the existing Laws and Circulars.
(c) Existing Pensioners
Note Interested employer wishing to continue with its existing scheme can apply to the National Pension Commission (Private Sector and Self-Funded Public Sector Agencies).
3.0 Contribution Rates:
(a) Public Service of the Federation & FCT Employer:- A minimum of 7.5% of monthly emoluments.
Employee:- A minimum of 7.5% of monthly emoluments.
(b) Military
Employer: A minimum of 12.5% of Monthly emoluments
Employee: A minimum of 2.5% of monthly emoluments.
(c) Other Cases
Employer: A minimum of 7.5% of monthly emoluments
Employee: A minimum of 7.5% of monthly emoluments
4.0 Retirement Savings Account
(a) Individual employee is to open a Retirement Savings Account (RSA) with any Pension Fund Administrator (PFA) of his choice.
- Transfer (once in a year) is allowed from one PFA to another without any reason.
(b) Employee to notify the employer of his choice of PFA with necessary details.
(c) Employer shall deduct contributions at source and remit same not later than 7 working days to the Pension Fund Custodian (PFC) specified by the PFA of the employee. - PFA to report any employer to NPC that refuses to remit after 14 days of deduction. - Penalty for non-remittance: - Not less than 2% per month of the amount not remitted and would be regarded as recoverable due to the employee?s RSA.
(d) Pension Fund Custodian to notify the PFA of receipt of Contributions (within 24 hours) so that the PFA can credit the employee?s Account accordingly
(e) The employee would not have any dealing with the PFC except the PFA.
5.0 Withdrawal from Retirement Savings Account.
(a) Upon leaving service at a minimum age of 50 years except on grounds of ill-health or permanent disability.
Note: Any employee that withdraws on ground of ill-health can re- enter the scheme if medical review of his fitness is positive. (b) Before age 50 if retirement is in accordance with the terms and conditions of his employment.
6.0 Retirement Benefits
(a) At a minimum age of 50
- Accumulated Funds (i.e. Transfer Value, if applicable, monthly contributions plus accrued returns) shall be utilised as indicated below:-
(i) Purchase of Annuity of not less than 50% of final annual remuneration. (ii) Lump sum cash benefit after item (i) above has been fulfilled. Note: - Annuity is to be provided by a licensed Life Insurance Company and arranged by the PFA - Programmed withdrawal, a PFA product, is an alternative to Annuity
(b) Retirement before age 50 based on terms
of employment
- Lump sum cash of not more than 25% of Account balance after 6 months of retirement and the retiree is not in any
other employment.
- Balance in the account to be used for Annuity purposes.
7.0 Death Benefits
These shall be made up of the following:-
(a) Accumulated contributions plus returns to-date and
(b) A minimum of 3 times annual total emoluments under a Group Life Assurance cover.
Note:
(i) Total benefits would not be paid in a lump sum but as indicated in section 6(a) above.
(ii) Categories of beneficiaries are :+
- Beneficiaries named in a Will
- Spouse and Children of the deceased
- Next-of-Kin (in the absence of a wife and child)
- Any person nominated by the employee during his life time
- Any person appointed through letter of Administration of a Probate Registry.
8.0 Tax Exemptions
(a) Retirement Benefits
(b) Additional Voluntary Contributions
withdrawn after 5 or more years.
(c) Contributions as tax deductible expenses.
9.0 Transfer of accrued entitlements from
defined benefits schemes.
(a) Unfunded public service schemes
- Bonds to be issued to the employees concerned and redeemedfrom a Bond Redemption Fund to be
managed by the Central Bank of Nigeria.
- 5% of total payroll figure to be paid by the Federal Government into the Redemption Fund.
(b) Funded Pension Schemes (Public Service and Private sector)
- Where there is deficit, debt to be acknowledged in writing to the employees concerned. The debt should be regarded as salaries being owed. NPC to be notified of
steps being taken to defray the deficit.
10.0 Pension Transitional Arrangement Department.
Existing Departments shall be responsible for payment of benefits of the existing pensioners, the exempted staff with 3 or less years to retire and the
exempted Judicial officers.
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Public Service
1. Existing Staff (with more than 3 years to retire) to open Retirement Savings Account with PFA of their choice.
2. Accrued benefits (Gratuity and cash value of pension) to be transferred to Retirement Savings Accounts of Staff through PFC.
- Deficit to be acknowledged in writing and regarded as salaries being owed. NPC to be informed about the steps being taken to meet the shortfall. This applies to self-funded schemes.
- Un-funded Schemes:
- Deficit to be recognised through issuance of bonds (Federal Govt. Retirement Bonds) in favour of the employees concerned to be redeemed at retirement.
3 Existing staff with 3 or less years to retire would not contribute to the new scheme and benefits shall be paid as per the existing ?defined benefits? scheme Rules.
4. Respective Pension Departments to still be responsible for payment of benefits of the existing pensioners, the exempted staff mentioned in item (3) above and the exempted Judicial officers.
5. Boards of Trustees shall be dissolved and all funds and assets shall be transferred to the Pension Department recognized by the Act. The transfer shall be supervised by the National Pension Commission.
Registration:
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Download NLPC RSA Form
Please fill the downloaded form and return to any of our Branch Office
Payment Schedule:
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Download e-Payment Schedule Form
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to read Instruction before filling the Form
Why I Choose NLPC PFA Ltd :
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I found NLPC PFA staff very helpful and I appreciate their effort.
Please keep the good work flying.
Kunle Adetoro
IT Unit
BPE, Abuja
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