Secure Your Golden Years with the Retiree Fund Account
Retirement is not just an ending but a new beginning. After years of dedication, it’s time to reap the rewards and enjoy your well-earned rest. Our Retiree fund Account helps you do just that, providing secure access to your pension funds while ensuring a stable income stream throughout your retirement years.
The Retiree Fund Account also known as Fund IV is a safe and secure way to access your pension benefits after retirement. It offers a programmed withdrawal plan, allowing you to receive regular, predictable income throughout your retirement. Think of it as your pension ATM, providing you with the financial freedom you deserve. The PRA 2014 specifies age 50 as the contributors’ minimum retirement age. Retirees’ options for accessing withdrawal benefits are Programmed withdrawal and Annuity plans. Programmed withdrawal packages are offered by Pension Fund Administrators while Annuity plans are provided by Insurance Companies duly licensed by the National Insurance Commision (NAICOM) and approved by the National Pension Commission.
A periodic (monthly or quarterly) pension payment to a retiree.
- he balance in the Retirees account continues to be invested, giving it the potential for growth.
- Programmed withdrawal computation is based on the standard template given by the National Pension Commission (PenCom).
- Pays Pension for life with increased income.
- PW is Secured, Safe & regulated Investments.
- PW is Transparent with access to monthly statement of account.
- If retiree dies at any time, RSA balance with accrued interest goes to the legal beneficiaries of the deceased as inheritance.
- A retiree on PW with a PFA can move to another PFA - when window opens.
Dynamics of Benefit processing:
- Submit all the necessary documents.
- PFA holds an exit discussion with the retiree.
- Retiree signs a copy of the Template printout indicating the agreed lump sum and monthly pension.
- PFA notifies PenCom by requesting for approval.
- Retiree executes the Programmed Withdrawal Agreement.
- PFA issues a payment instruction to its Pension Fund Custodian (PFC).
- Retiree starts to receive monthly pension on or before the 24th of every month.
How much is withdrawn at the point of Exit largely depends:
- Age at retirement
- Gender (Male/Female)
- RSA Balance
- Size of Annual Total Emolument (ATE)
- Sector (Private or Federal Public or State)
Role of Prospective Retirees
- Liaise with PFA within 6 months to retirement
- Supply PFA with Official Notice of Retirement from employer
- Provide other documents required by the PFA
- Re-introduce/confirm Next of Kin to PFA before/at retirement
- Provide details of bank account for receiving retirement benefits
- Provide contact address after retirement
- Negotiate mode of withdrawal of benefits with PFA.
