What is the new Pension scheme in Nigeria about?

The new Pension scheme is a contributory privately managed scheme. Every eligible Employee shall maintain a Retirement Savings Account in his name with the Pension Fund Administrator (PFA) of his choice. The employee shall notify his employer of the PFA chosen and the identity of the Retirement Savings Account (RSA) opened.

The employee and employer contribute a minimum statutory percentage of the employee’s monthly emoluments (comprising basic salary, housing allowance and transport allowance) into the Retirement Savings Account of the employee.

The contributions would be managed and administered by professional Fund Administrators and held in custody by licensed Pension Fund Custodians (PFC).   At retirement, the amount in the employee’s Retirement Savings Account would be the total contributions plus income and capital gain earned on the contributions made.

Will the new Pension scheme affect every worker?
What are the objectives of the new Pension scheme in Nigeria?
How much will the employer and the employee need to contribute under the new Pension Scheme and what happens to the contributions?
What are the functions of a Pension Fund Administrator (PFA)
What are the functions of a Pension Fund Custodian (PFC)
What is the main difference between PFA and PFC?
Who is the regulator and what is its role?
Are pension contributions paid to PFA?
How do I know the status of my contributions?
Can I change my PFA?
Can I make extra or voluntary Contributions to my Retirement Savings Account under the Scheme?
When and how will I have access to the funds in my Retirement Savings Account?
Can I withdraw any portion of it before age 50?
Who decides how my PFA invests my funds?
What happens to the amount in an employee’s Retirement Savings Account in the event of the employee’s Death?
Are my contributions and retirement benefits taxed?
Can the funds in an RSA be used as Security for Borrowing?
What Effect would inflation have on my Contributions?
What about my contributions to NSITF?
What happens to the retirement benefits under the pension scheme existing before the commencement of the Pension Act?
How will the Federal Government fund its Redemption Bond?
Who would be responsible for managing the affairs of current pensioners and those not affected by the new Pension Act?
How does the scheme ensure that my funds are not mismanaged or squandered?
What if my employer imposes its preferred PFA on me and refuses to pay to my PFA?
What if my employer places conditions on the making of contributions, (e.g. minimum duration of service)?
What Happens in the event of liquidation by the PFA or the PFC?
Am I charged by my PFA of choice?