Q: WHAT IS THIS NEW PENSION SCHEME? A: The new scheme is a contributory, fully funded, privately managed pension scheme that is based on individual accounts. It ensures that everyone who has worked receives his retirement benefits as at when due.
Q: HOW DOES THE PENSION SCHEME WORK? A: An employee contributes a percentage of his salary and the employer contributes a percentage of the employee’s salary towards the retirement benefits of the employee.
Q: WHAT WILL HAPPEN TO THE PENSION FUND CONTRIBUTION? A: The total contribution will be paid out by the employer directly to a PFC and will be managed and invested by the PFA, of the employee’s choice.
Q:WHAT DOES FULLY FUNDED MEAN? A: It means that the amount contributed by the employer and employee is actually paid to a PFC and invested by the PFA. This gives the employee immediate ownership of his/her pension benefits.
Q: WHO IS A PENSION FUND ADMINISTRATOR? A: A PFA is an entity licensed by the National Pension Commission (PenCom) and charged with the responsibility of managing and investing the pension funds. Each employee is free to choose a PFA.
Q: WHO IS A PENSION FUND CUSTODIAN? A: The PFC is an entity licensed by PENCOM to hold pension assets in safe custody.
