CrusaderSterling Pensions

Enjoy a Secure Income with Programmed Withdrawal

Imagine a retirement filled with financial freedom and peace of mind. Programmed Withdrawal (PW) from CrusaderSterling Pension makes this dream a reality. It’s your key to a comfortable lifestyle after years of hard work, offering flexibility, guaranteed income, and peace of mind for you and your loved ones.

What is Programmed Withdrawal?

Programmed Withdrawal (PW) is a flexible retirement income option designed to provide you with monthly or quarterly payments throughout your life. Unlike traditional pensions, PW isn’t capped at 10 years, so you can relax knowing your income will last as long as you do.

Beyond the Basics

Programmed Withdrawal (PW) is a retirement income option available under the Contributory Pension Scheme (CPS). The CPS was introduced in 2004 to ensure a sustainable and predictable pension system for public and private sector employees in Nigeria.

The CPS provides Registered Employers to remit monthly pensions into the Retirement Savings Accounts (RSA) of their employees managed by a Pension Fund Administrator (PFA). Upon retirement and attaining a minimum age of 50, employees become eligible to access programmed withdrawal or choose annuity as their preferred retirement option.

PW is a flexible withdrawal option offered by Pension Fund Administrators and regulated by PenCom. It provides a retiree with the option of collecting a computed lumpsum amount and a regular monthly/quarterly benefit throughout the life span of the retiree, unlike in an annuity with a maximum payment plan of ten (10) years.

PW enables the retiree to receive benefits from periodic pension enhancements achieved by sustained investment returns. The retiree is also eligible to receive quarterly RSA statements or upon request at any time.

Upon the demise of a retiree, the complete RSA balance, including any accrued investment returns, shall be paid to the next of kin.


What retirement plans are available for Retirement Savings Account (RSA) contributors?

Programmed Withdrawal and Annuity retirement plans.

What is the difference between Programmed Withdrawal and Annuity?

A programmed withdrawal is a method by which the retiree collects his/her retirement benefits in periodic sums spread throughout his/her life span from a Pension Fund Administrator (PFA). An annuity is an income purchased from an approved life insurance company which provides monthly or quarterly income to the retiree during his/her lifetime.

How does Programmed Withdrawal work?

For Programmed Withdrawal, a lumpsum is paid to the Retiree, after which a computed amount called Monthly Pension is paid monthly or quarterly for life. The two payments are determined using PENCOM’s approved template

Under Programmed Withdrawal, the retiree has the option of waiving the lumpsum, and choosing a much-increased programmed withdrawal. Also, accrued interests on the fund are credited into the retiree’s RSA.

How is the lump sum calculated?

The lump is calculated based on a template provided by PENCOM. It usually ranges between 25 – 50% of the RSA balance. The parameters used to determine the exact amount include age, gender, RSA balance, and retiree’s final salary.

Does the periodic amount paid in Programmed Withdrawal remain the same throughout one’s lifetime?

No. Monthly programmed withdrawals are periodically enhanced with returns on investments made by the PFA.

How do I monitor my account balance in Programmed Withdrawal retirement plan?

Periodic account statements are sent to retirees via registered email and SMS.

What happens to the RSA balance if/when the retiree is deceased?

Upon the demise of the retiree, the RSA balance is paid to the legal beneficiary.

Can I exit Programmed Withdrawal anytime?

Yes, you can. Retirees in the Programmed Withdrawal plan can transfer to annuity anytime.

What happens if my RSA balance is depleted?

The Pension Protection Fund provides insurance in such cases. The fund enables retirees in the Programmed Withdrawal plan to continually receive monthly/quarterly payment in such cases.

Are there tax implications associated with the funds in programmed withdrawal from a pension plan?

No. Pension funds are exempted from tax deductions.

How long does it take to start receiving funds in the Programmed Withdrawal?

Six(6) working days from submission of complete documentation by the Retiree, and signing the PW template.

Can I choose the frequency of programmed withdrawals from my pension plan?

Yes, you can. Retirees have the option to choose either monthly or quarterly withdrawals.

How do I get started on the Programmed Withdrawal retirement option?

To get started, click here to fill the form and a CPL staff member will contact you. (You have to be atleast 50 years of age and have exited employment before applying).

How do I monitor my account balance in Programmed Withdrawal retirement plan?

Periodic account statements are sent to retirees via registered email and SMS.

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