Daily Independent (Lagos)
13 January 2009
Public service employees about to attain the stipulated mandatory age of 60 or 35 years of meritorious service are expected to visit the National Pension Commission (PenCom) at its head office in Abuja to register for the Federal Government Retirement Bond three months to the date of retirement if they are retiring in accordance with their terms of employment.
The Federal Government Retirement Bond being issued by PenCom is for retiring public servants, who are due for retirement as from July 1, 2007. This bond carries an amount equal to the accrued pension and gratuity up to June 30, 2004 plus five per cent income in respect of each retiring employee. At retirement, the value on the bond is cashed and transferred directly into the Retirement Savings Account (RSA) for administration in accordance to sections 3 and 4 of the Pension Reform Act 2004.
For further information on benefits, retiring employees could call the customers care phone numbers of their choice of Pension Fund Administrator (PFA) or send e-mail to the address of the PFA concerned, which is readily available on the websites of these PFAs.
Administration Of Retirement Benefits
Section 4 of the Pension Act stipulates that a holder of a retirement savings account upon retirement or attaining the age of 50 years, whichever is later, shall utilise the balance standing to the credit of his retirement savings account for the following benefits:
* Programmed monthly or quarterly withdrawals calculated on the basis of an expected life span.
* Annuity for life purchased from a life insurance company licensed by the National Insurance Commission with monthly or quarterly payments.
* A lump sum from the balance standing to the credit of his retirement savings account: provided that the amount left after that lump sum withdrawal shall be sufficient to procure an annuity or fund programmed withdrawals that will produce an amount not less than 50 per cent of his annual remuneration as at the date of his retirement.
Similarly, employees from private sector, who are entitled to accrued benefit from old pension arrangement up to June 2004 would have their entitlement transferred by employers into the Retirement Savings Account for administration in accordance to sections 3 and 4 of the Pension Reform Act 2004.
Required Documents To Be Submitted To PFA
It will be pertinent to point out here that one of the licensed Pension Fund Administrators (PFAs) in the country, Premium Pension Limited, has been embarking on awareness campaign to ensure that workers enjoy stress free retirement.
The PFA shed light on the checklist of required documents to be submitted in addition to a formal letter of notification to the PFA managing the employees' Retirement Savings Account (RSA) in respect of their exit from service.
Relevant documents in case of Voluntary/Normal Retirement:
* Letter of application for retirement in previous employment
* Letter of approval from employer granting retirement
* Copy of enrolment letter from Premium Pension Limited
* Salary pay slip at the period of exit
* Copy of birth certificate/sworn declaration of age
* Certified copy of retirement bond (to be submitted at exit)
* Dedicated bank account and branch
* Your choice of benefit, either monthly or quarterly Programmed withdrawal
* Confirmation of next of kin
Relevant Documents In Case Of Death:
* Completed death notification form, signed and stamped at the column marked 'MDA'
* Copy of enrolment letter from Premium Pension Limited
* List of documents itemised on the death notification form
* Certified true copy of letter of Administration or Will from a Notary Public or a Probate Registry
* Salary grade level and step of the deceased as at June 30 2004.
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