CPS: Grounds for withdrawal from your RSA
Retirement Savings Account (RSA) holders under the Contributory Pension Scheme (CPS) will have reasons to withdraw part or all of what they have in their account for a number of reasons. Withdrawal here may be as result of – normal retirement, temporary exits, medical ground, death or missing persons.
Experts at Investment One Pension Managers Limited, one of the Pension Fund Administrators in the country here provides insight into the different withdrawal opportunities and how RSA holders, retirees or their dependants can facilitate documentation processes in the event of any of those occurring.
Normal Retirement
This is a situation where a member retires based on the terms and conditions of his employment at the age of 50 years or above or if he has served for the maximum number of years as stipulated in the terms of his employment. Such member is qualified for full retirement benefits under a programmed withdrawal (with or without lump sum) or a life annuity purchased from an approved insurance company.
Steps to take:
Notify your PFA of the impending retirement six (6) months to the date of retirement.
The PFA will forward a Benefit Withdrawal Application form to you for completion. Members can also download the form online from the website of the PFA or visit any of its regional offices nationwide.
Return the completed Benefit Withdrawal Application form to the PFA either at its Head Office or through any of its branches nationwide along with the documents listed under.
Required Documents
Official notice of retirement issued by your employer
A document signed by your employer confirming that the retirement is in accordance with the terms of employment.
Last pay-slips or any other evidence of total annual remuneration.
Evidence of any accrued pension rights/acknowledgement of indebtedness (for an employee in the private sector).
Evidence of enrolment for Federal Government Retirement Bonds with PenCom (for an employee in the public sector).
2 recent passport photographs
Duly executed Retiree Indemnity form for a public sector employee
Acceptable means of identification of retiree (Employer Staff ID, Driver License, National ID Card or International Passport).
A Provisional Annuity Purchase Contract from a Life Assurance company (applicable only where the retiree chooses annuity).
Temporary exits
This applies when a member disengages from active service before attaining the retirement age based on his terms of employment. This is also applicable if the member is retiring in accordance with the terms and conditions of his employment but less than 50 years of age, provided that such member did not secure another employment after six (4) months.
The member can, on request, be paid a lump sum up to a maximum of 25 percent of the balance in his RSA. Upon attaining the age of 50 years, the member can access the balance either as an enbloc payment, through programmed withdrawals or an insurance annuity depending on the RSA balance.
If a retired member is below 50 years, and secures another employment afterwards, such member can re-enter the scheme and resume contributing into his RSA.
Steps to take:
Member to notify his PFA of disengagement if after six months he/she is unable to secure another employment
Your PFA will forward a Benefit Withdrawal Application form to the member for completion. Members can also download the form online from the PFAs website or visit any of its regional offices nationwide
Return the completed Benefit Withdrawal Application form to the PFA either at its Head Office or through any of its branches nationwide along with the documents listed under
Required Documents
Official notice of disengagement issued by your employer
A document signed by your employer confirming that the retirement is in accordance with the terms of employment.
Evidence of any accrued pension rights/acknowledgement of indebtedness (for an employee in the private sector)
Evidence of enrolment for Federal Government Retirement Bonds with PenCom (for an employee in the federal public sector)
2 recent passport photographs
Retiree Indemnity form if a public sector employee
Acceptable means of identification of retiree (Employer Staff ID, Driver License, National ID Card or International Passport)
Medical Ground
This occurs when a member retires from active service as a result of mental or physical incapability. However, members who retired on medical grounds can re-enter the scheme after a period of 2 years on re-certification by a qualified physician or medical board, and getting another employment.
Steps to take:
Member to notify his PFA of his retirement on medical grounds. Where the notification by the affected member is not feasible, the Next of Kin may notify the PFA.
The PFA will forward a Benefit Withdrawal Application form to the member for completion. The forms are also available in all its offices nationwide, and can be downloaded from its website.
Return the completed Benefit Withdrawal Application form to the PFA either at its Head Office or through any of its branches nationwide along with the original and photocopies of the following documents:
Required Documents
A medical certificate issued by a properly constituted Medical Board or a suitably qualified physician
The letter of notification of retirement issued by your employer confirming that your retirement is on medical grounds and also authenticating the medical certificate
Pay slip or evidence of total annual remuneration
Evidence of any accrued pension rights or acknowledgement of indebtedness (If an employee in the private sector)
Death
Pension benefits may arise in respect of death of an active contributing member or a retired member who is already on the programmed withdrawal or regular pension list. In the case of an active member, his life insurance proceeds under the group life assurance established in accordance with the PRA 2004 are to be paid to the deceased dependants. The benefits of the deceased members will normally be paid en-bloc to the survivor/beneficiary. However, where the consolidation of the funds into the account will prolong, the payment may be made as the fund becomes available. This is to alleviate the suffering of the deceased member’s family.
Steps to take:
The Next-of-Kin and/or employer should notify the PFA of Death of the employee/retiree
The Next-of-Kin will also be required to provide a satisfactory means of identification such as current Driver’s License, International Passport, National Identity Card or letter of confirmation of identity from his/her bank
A Next-of-Kin who cannot provide any of the means of identification stated above, may be identified by a 3rd party, who in addition to providing any of the satisfactory means of identification stated above shall also provide a sworn court affidavit identifying the claimant
The PFA will forward a Death Benefit Withdrawal Application Forms to the survivor to complete. The forms are also available in all its offices nationwide, and can be downloaded from its website.
The survivor will complete and return the Survivor Benefit Application forms to either head office of the PFA or to any of its branches nationwide. The completed application forms should be returned with a Letter of Administration or Will admitted to Probateand any of the listed documents below:
Required Documents
Certificate of Death/Cause of Death
Certificate of Registration of Death
Police Report (if death is by accident)
Burial Warrant issued by a Local Government Council
Evidence of Death/Burial issued by an Islamic Community Head or Judge of a Sharia Court
Evidence of Death/Burial issued by a Leader of a registered church Copy of obituary poster (if any)
Missing Persons
Where an active contributing member or a retired member who is already on programmed withdrawal or regular pension list is declared missing, the conditions for benefits under the death ground will be applicable.
Steps to take:
The Next-of-Kin and/or employer will notify the PFA of the disappearance of the employee/retiree. Such notification will be after a minimum period of 12 months following the disappearance of the missing person
The Next-of-Kin will provide a satisfactory means of identification such as current Driver’s Licence, International Passport, National Identity Card or letter of confirmation of identity from his/her bank
A Next-of-Kin who cannot provide any of the means of identification stated above may be identified by a 3rd party, who in addition to providing any of the means of identification stated above, shall provide a sworn court affidavit identifying the claimant
The PFA will issue the Next-of-Kin, a Death Benefit Withdrawal Application form and demands the following documents as evidence that the employee/retiree is missing:
Required Documents
A Police Report confirming that the person has been missing with effect from the reported date, and that the person has not been found after 12 months
Letter of confirmation from the employer (if in active employment at the time of disappearance) also bearing the passport photograph of the missing person
Newspaper publication announcing the disappearance of the person
A Letter of Administration or Will admitted to Probate
The Next-of-Kin will submit the completed death benefit withdrawal application form together with the required documents to the PFA head office or through any of its branches nationwide.