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In Nigeria, Pension law is governed by the Pension Reform Act of 2014. This act is also applicable in the city of Abeokuta. This law ensures that every person who worked in the Nigerian public service sector (federal, state, and local government) or the private sector receives his or her retirement benefits as and when due.
Pension disputes can arise for several reasons such as disagreements over entitlements, negligence or maladministration by pension administrators, or disputes concerning mandatory contributions. Additionally, having a skilled lawyer can help with understanding your rights under the pension law, pursuing claims, providing assistance in filling forms, improving communication with the pension bodies, and providing guidance on the best possible steps to ensure your retirement is secure and you receive the benefits you are entitled.
Pension law in Abeokuta, like other places in Nigeria, obligates organizations with at least 3 employees to implement a Contributory Pension Scheme for their staff. Employers are required to deduct and remit 8% of an employee's monthly income, while the employer contributes an additional 10%. This money is then managed by a Pension Fund Administrator (PFA) chosen by the employee. It's important to note that the Non-interest Fund has recently been introduced to the already existing Retirement Savings Account Funds options.
Opening a Retirement Savings Account (RSA) can be done personally or through your employer. You need to contact a Pension Fund Administrator, fill out a form, submit your ID along with proof of employment.
If you change jobs during your employment, your pension is safe. Your employer contributions will simply stop but you can arrange for your new employer to start making contributions.
Access to your RSA before retirement is usually only permissible under very specific and limited circumstances, like permanent disability.
Upon retirement, you may choose to either withdraw a lump sum or procure a programmed withdrawal or an annuity.
Your RSA can be passed on to your named next-of-kin in the event of your death.
For more information and advice, you can reach out to National Pension Commission (PenCom) which is responsible for the regulation, supervision and ensuring effective administration of pension matters in Nigeria. Another valuable resource is the local branch of your Pension Fund Administrator.
If you need legal assistance dealing with pension matters, you first need to select and reach out to a trusted lawyer. A good start can be Nigerian Bar Association (NBA), Office of the Public Defender (OPD), or Legal Aid Council of Nigeria which provide access to legal representation to low-income earners or indigent persons who are unable to afford the cost of hiring a private legal practitioner.
