The National Pension Commission (PenCom) has disclosed that a total of 1,286 workers under the Contributory Pension Scheme (CPS) withdrew N2.18 billion from the voluntary contributions in their retirement savings account (RSA) in the third quarter of 2020.
PenCom revealed this in its third-quarter 2020 report (July to September).
“During the quarter under review, the commission granted approval for withdrawal of the sum of N2.18 billion from the voluntary contribution accounts of 1,286 contributors,” part of the report reads.
The guidelines on voluntary contribution under the CPS stated that the main purpose of the Pension Reform Act 2014 is to introduce a pension system that is sustainable and has the capacity to achieve the ultimate goal of providing a stable, predictable and adequate source of retirement income for each employee in Nigeria.
It said, “The Pension Reform Act 2014 allows employees to make, voluntary contributions into their Retirement Savings Account, in addition to their mandatory pension contributions, with the sole aim of enhancing their retirement benefits.
1,286 Workers Withdraw N2.18bn From Pension Account In Q3
“Voluntary contributions under these guidelines shall be non-obligatory contributions made by any employee in the formal sector through the employer.
“Employees of organisations with less than three employees as well as self-employed persons as provided in Section 2 (3) of Pension Reform Act 2014 (PRA 2014) shall be covered under the guidelines for micro pensions.”
The commission said an employee must notify his employer in writing of his/her intention to make voluntary contributions and the amount to be deducted from his salary (not more than one-third of the monthly salary) and remitted as voluntary contributions.
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