Your salary package goes beyond receiving your monthly net income. You shouldn’t trivialise your pension contributions.
The National Pension Commission (PenCom)’s “Contributors Role in the Contributory Pension Scheme (CPS) in the Year 2022” is out.
Therefore, we have outlined the four important responsibilities of a pension contributor under the Contributory Pension Scheme in this article.
Quarterly Statements
PenCom has made it clear that you receive quarterly statements of your Retirement Savings Account (RSA) from your Pension Fund Administrator (PFA).
However, it is better if you do this on a monthly basis rather than a quarterly basis. This is to enable you to discover errors immediately.
If you discover any error, you should contact your employer and PFA to resolve it immediately.
If you discover any error, you should contact your employer and PFA to resolve it immediately.
Fund Performance
You should constantly review your Retirement Savings Account (RSA) statement to check the performance of the fund.
Doing this is simple. All you have to do is compare the balance in your RSA statements on a monthly basis while considering your monthly pension remittance.
Doing this is simple. All you have to do is compare the balance in your RSA statements on a monthly basis while considering your monthly pension remittance.
Complete Monthly Remittance
The Pension Reform Act 2014 mandates that the employee must contribute a minimum of 8% while the employer must contribute a minimum of 10% of the employee’s total emoluments.
The amount remitted into your RSA must be stated on your payslip to re-compute the amount. The amount stated as pension contribution on your payslip must also be the same amount stated in your Retirement Savings Account (RSA) Statement from your Pension Fund Administrator (PFA).
Group Life Insurance Policy
Ensure that you verify that your employer has subscribed to a Group Life Insurance Policy for you and the premium is being paid annually in line with the Pension Reform Act (PRA 2014).
The Pension Reform Act 2014 demands that every employer shall maintain Group Life Insurance Policy in favour of each employee for a minimum of three times the annual total emolument of the employee and premium shall be paid not later than the date of commencement of the cover.
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If your employer does not have a Group Life Insurance for its employees or is not paying premium to the insurance company to renew the Group Life Insurance annually, you have the responsibility to report this to PenCom.
The journey to performing your contributory responsibilities starts with opening a Retirement Savings Account (RSA). For more information on RSAs, contact Oak Pensions via www.oakpensions.com, info@oakpensions.com or call the Marketing Manager on 09087448661.
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