PENCOM announces new rules on Voluntary Pension Contributions 

The National Pension Commission (PENCOM) has announced new uniform  Guidelines to regulate the operation of the Voluntary Pension Contributions (VC) scheme  and establish eligibility criteria for participation.

In the issued guidelines, Pencom says that Voluntary Contributions will be non-obligatory contributions made by any employee in the formal sector through the employer.

The new rules also Provide the procedure for making Voluntary Contributions as well as necessary safeguards and modalities for its withdrawals.

It also provides guide as to how  Voluntary Contributions can be utilized for the purpose of enhancing future retirement benefits for active or mandatory contributors.

T he Pension Reform Act (PRA) 2014 allows employees to make Voluntary Contributions into their Retirement Savings Account (RSA) in addition to their mandatory pension contributions, with the sole aim of enhancing their retirement benefits.

In a mailed statememt signed by its Head, Corporate Communications,  Peter Aghahowa, Pencom said the new set of guidelines is to also encourage retirees under CPS to utilize part or all of the Voluntary Contributions to augment their existing pension.

It will also assist retirees under defunct defined benefit scheme, exempted persons from the CPS and foreigners to save in order to cater for their livelihood during old age.

“The Commission hereby reminds contributors to be guided by the guidelines and encourages them to direct all their enquiries pertaining the Voluntary Contributions to their respective Pension Fund Administrators,” Aghahowa notes.

Details later..

Onyinye Nwachukeu, Abuja