PenCom directive triggers slowdown in voluntary pension contribution

FOLLOWING the recent directive of the National Pension Commission, PenCom, which limits access to such contribution after retirement, employees making voluntary contributions into their Retirement Savings Account (RSA) has stopped such contribution.

The CPS allows employees to do voluntary contribution if they so desired. Before now, employees can withdraw from the voluntary contribution at will.

However, PenCom had on 16 November 2017 issued a circular to all Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) communicating new guidelines on withdrawals from voluntary pension contributions (VC).

A source in Lagos State Pension Commission, LASPEC, told Vanguard that most workers in Lagos State, who had earlier embraced voluntary contributions, had stopped contributing as they considered the new policy by PenCom harsh and defeats the purpose for voluntary contribution.
Vanguard, January 1, 2018

 

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