The main objective of the CPS is to ensure that every person who worked in either the Public or Private Sectors in Nigeria including the self-employed persons receives his/her retirement benefits as and when due.

Judicial officers, Members of the Armed Forces, the Intelligence and Secret Services of the Federation, existing retirees prior to June 2004 and employees who had 3 years or less to retire as at June 2004.

No. The RSA holds the employee’s monthly pension contributions, which are remitted through the employer for the exclusive purpose of providing retirement income. The PFA invests the funds in allowable investment outlets and the income generated is fully credited into the RSA. Withdrawals are not permissible by contributors except at retirement or upon temporary loss of job and in all cases, withdrawals are subject to approval by the National Pension Commission (PenCom).

A PFA is a company licensed by the National Pension Commission for the sole purpose of managing and administering pension funds contributed into the RSAs.

The PFA manages and invests the pension funds on behalf of contributors while the PFC keeps the pension funds and assets in safe custody and carries out transactions on behalf of the PFA.

The CPS is fully funded through the monthly pension contributions into the employee’s RSA, which are managed by the PFA and held in safe custody by the PFC. These funds are readily available for payment of benefits at retirement. The DB Scheme or PAY-AS-YOU-GO is not funded and is dependent solely on budgetary allocation to pay a predetermined amount as benefits at retirement.

The PRA 2014 primarily applies to Nigerian citizens working in Nigeria and does not cover expatriate employees. However, such expatriate employees are entitled to make voluntary contributions under the Contributory Pension Scheme.