CPS: Start your documentations ahead retirement

The beauty of the Contributory Pension Scheme (CPS) is that people having contributed while in employment are able to access their pensions as soon as they leave job, without having to wait for so long to get their bank accounts credited as appropriate.

To realize this objective, the right step is to commence documentation for retirement six months before final exit from job. With this, you would have saved yourself a whole lot of trouble that could have delayed your pension payment. This means that the employee, either in the public or private sector should as a matter of importance ensure that they start documentation process at least six months before exiting. Note that having access to your documents or getting assistance from fellow employees on trying to assemble your documents is usually much easier while you are still in the system. The moment you are out of the employment, you might have to follow some procedures to access your file again.

Upon retirement or attaining 50 years of age (whichever is later), the balance on Retirement Savings Account (RSA) can be utilized for lump sum payment provided the balance on the RSA afterwards is sufficient to procure a Programmed Withdrawal or Annuity for life in line with National Pension Commission (PenCom) guidelines.

•Programmed monthly or quarterly withdrawal from PFAor

•Annuity for life from Life Insurance Company

•If the terms and conditions of employment allow retirement before 50 years, the Contributor can access 25 percent of the balance on RSA

•Upon disengagement or resignation before the age of 50 and does not secure another job within 4 months, you can also access 25 percent of the balance on the RSA.

Public Sector Employees are to attend the PenCom verification and enrollment exercise, the year before the retiring year. This ensures the remittance of accrued benefits and rights.

The following are documents require for the exercise:

•Certified copy of first appointment letter;

•Record of service by the MDA/Ministry;

•Last Promotion Letter;

•Certified Copy of June 2004 Pay slip;

•Passport Picture; and

•Birth Certificate/Age declaration

•PFAs are to notify public and private sector customers within 6months to retirement.

Requirements for Accessing Retirement Benefits

Public sector

•Copy of official notice of retirement from employer.

•Payslip for any of the last three months before retirement month.

•Copy of the PenCom Retirement Benefit Registration Slip.

•One passport photograph.

Private Sector

*Official notice of retirement from employer.

* Payslip for any of the last three months before retirement month or evidence of annual remuneration.

*Letter from ex-employer confirming status of outstanding remittance (Accrued Pension Right).

*One passport photograph.

*Age Declaration/Birth Certificate.

Medical Grounds

•Certified true copy of a medical certificate issued by a properly constituted Medical Board or a suitably qualified physician;

•The letter of notification of retirement issued by the employer also authenticating the medical certificate; and

•All other requirement, based on the category of application (i.e. public or private).

Deceased benefits

•The PFA shall establish the identity of the Next-of-Kin and shall demand for:

•Certified True Copies of Letter of Administration or Will admitted to Probate.

•Certificate of registration of Death or other evidence

•Payment is made to the beneficiary named in the Will or persons named in the Letter of Administration or other Court documentation.

Missing Person

•Theprocessingofbenefitincaseofmissingperson,theemployerand/or Next-of Kin shallnotify the PFAofthedisappearanceoftheemployee/retireeafteraminimumperiodof12monthsfollowingthedisappearanceofthemissingperson.

•TheNext-of-Kinshallprovideasatisfactorymeansofidentificationand

•APolice reportconfirmingthatthepersonhasbeenmissingwitheffectfromthereporteddate, thecircumstanceofthedisappearanceandthatthe personhasnotbeenfoundafter12months.

•Letterofconfirmationofdisappearancefromtheemployer(ifinactiveemploymentatthetimeofdisappearance)alsobearingthepassportphotographofthemissingperson.

The objectives of the Pension Reform 2014 is to establish a uniform set of rules, regulations and standards for the administration and payments of retirement benefits for the public service of the Federation, the Public Service of the Federal Capital Territory, the Public Service of the State Government, the Public Service of the Local Government Councils and the private Sector; Make provision for the smooth operations of the contributory pension scheme;

Ensure that every person who worked in either the public Service of the Federation, Federal Capital Territory, States and Local government or the Private Sector receives his retirement benefits as and when due ; and

Assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age.

The provisions of this Act shall apply to any employment in the public service of the Federation, the public Service of the Federal Capital Territory, the Public Service of the state, the public service of the local governments and the private sector.

In the case of the Private Sector, the Scheme shall apply to employees who are in the employment of an organization in which there are 15 or more employees.

Notwithstanding the provision of subsection (2) of this section, employee of organization with less than three employees as well as self-employed persons shall be entitled to participate under the scheme in accordance with guidelines issued by the commission.