No! A lump sum from the balance of the retirement savings account may be withdrawn, provided the amount remaining after the lump sum withdrawal shall be sufficient to procure an annuity or fund programmed withdrawals.
It ensures that the retiree receives his or her benefits as and when due. In addition, it enables the retiree to have a steady income during retirement.
It is beneficial to the employee when he or she gets to the age of 50 years or retires (whichever is later) or in case of physical disabilities or prolonged unemployment.
The beneficiary (ies) of the employee as stated in a Will (or letter of administration in the absence of a Will) admitted to Probate, becomes the beneficiary (ies) of the benefits in the RSA.
Funds contributed by any person to the NSITF shall be computed and credited to the Retirement Savings Account of the contributor in his present PFA five years from commencement of the scheme.
The National Pension Commission has established a uniform set of rules and regulations for the administration and payment of retirement benefits in both the public and private sectors.
The PFAs in New Pension Scheme do not pay Gratuity, however the retiree is entitle to a Lump sum payment, from the balance standing to the credit of his retirement savings account at retirement.
A retiree is entitle to the statutory 25% of the RSA balance as a lump sum but however, a retiree may also be able to withdraw up to 50% provided the amount remaining after the lump sum withdrawal shall be sufficient to pay his or her pension i.e. procure an annuity or fund programmed withdrawal.
A retiree must be issued a quarterly statement of account. The retiree can also access information on the retirement savings account via the internet or contact the Pension fund administrator for, update at any given period within the expected due date for a statement of account.
The balance on the retirement savings account and the interest accrued shall be paid en bloc to the beneficiary (ies) of the deceased retiree, as represented in the Will or Letter of Administration.
