PenCom releases new guidelines to regulate voluntary contributions
The National Pension Commission (PenCom) in furtherance of carrying out its mandate of regulating the pension industry has issued new guidelines to regulate the operation of Voluntary Contributions (VC).
A statement by the Head, Corporate Communications, PenCom, Peter Aghahowa, stated that it is pertinent to note that the 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.
According to the issued Guidelines, Voluntary Contributions shall be non-obligatory contributions made by any employee in the formal sector through the employer.
The commission noted that the objectives of the guidelines are, to establish of uniform set of rules for the operation of Voluntary Contributions and eligibility criteria for participation in the Contributions.
To Provide the procedure for making Voluntary Contributions as well as necessary safeguards and modalities for its withdrawals; to utilize Voluntary Contributions for the purpose of enhancing future retirement benefits for active or mandatory contributors; to encourage retirees under CPS to utilize part or all of the Voluntary Contributions to augment their existing pension and 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 reminded contributors to be guided by the guidelines and encouraged them to direct all their enquiries pertaining the Voluntary Contributions to their respective Pension Fund Administrators.
