What is the Pension Reform Act 2014?

What is the Pension Reform Act 2014?

An Act to repeal the Pension Reform Act No. 2, 2004 and enact the Pension Reform Act, 2014 to make provision for the uniform contributory pension scheme for public and private sectors in Nigeria; and for related matters.

Is pension compulsory in Nigeria?

In 2004, the Federal Government of Nigeria enacted the Pensions Reform Act (PRA 2004) which introduced the Contributory Pension Scheme (CPS) and made it mandatory for employers and employees in both the public and private sectors to contribute towards the retirement benefits of employees.

How long does it take PenCom to approve?

Please note that from the day of submission, the receipt of approval from PenCom, and the actual crediting of your account should take an average of 20 working days.

How does Pension Reform Act work?

The PRA establishes a Contributory Pension Scheme whereby the employers and the employees contribute minimum percentages of the employees’ salary to the scheme every month. The minimum contribution for the employer is 10%, and 8% for the employee.

What is the formula for calculating pension?

Kasturirangan says, “The formula to calculate the EPS pension is as follows: Monthly pension amount= (Pensionable salary X pensionable service)/70.” Pensionable service: This refers to the number of years for which contributions were made to the EPS account.

How does pension Reform Act work?

What are the pension requirements?

The first requirement that you must satisfy to be eligible for the Age Pension is reaching the minimum age. It is currently 66 years and 6 months for both men and women, increasing to 67 years from 1 July 2023.

How does PenCom work?

The Pension Reform Act 2004 established the National Pension Commission (PenCom) as the body to regulate, supervise and ensure the effective administration of pension matters in Nigeria. The functions of the Commission include: Regulation and supervision of the Scheme established under the Act.

How do I get my 25% pension?

It’s not normally before 55. Contact your pension provider if you’re not sure when you can take your pension. You can take up to 25% of the money built up in your pension as a tax-free lump sum. You’ll then have 6 months to start taking the remaining 75%, which you’ll usually pay tax on.