• Tuesday, May 28, 2024
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Compulsory retirement

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Compulsory retirement occurs when an employee is being disengaged or terminated from active service in accordance with the terms and conditions of service, before attaining the age of 50 years. This category of retiree can only access up to 25 percent of the balance in their RSA three months after disengagement; the remaining balance can be accessed after the retiree attains 50 years of age through a lump sum and programmed withdrawal or annuity.

An RSA holder who retires compulsorily before the age of 50 years and wishes to apply for 25 per cent of his RSA balance shall provide copies of the following documents: completed application form; official notice of retirement issued by his/her employer; a document confirming that the retirement is in accordance with terms and conditions of his/her employment; last pay slip or evidence of total annual remuneration; evidence of any accrued pension rights/acknowledgement of indebtedness (if an employee in the private sector or a self-funded government organisation), as well as any outstanding pension contribution.

Means of identification will include national identification card; valid international passport; valid driver’s license; letter of confirmation of identity from his/her bank or notary public; bank account details including name of bank, branch or location of bank, account number, account name, evidence of account, one passport photograph, birth certificate or age declaration.

The objectives of the Pension Reform are to ensure that every person who worked in either the Public Service of the Federation, Federal Capital Territory or Private Sector receives his retirement benefits as and when due; as well as to assist individuals by ensuring that they save to cater for their livelihood during old age and thereby reducing old age poverty; and also to ensure that pensioners are not subjected to untold suffering due to inefficient and cumbersome process of pension payment.

It also aims at establishing a uniform set of rules, regulations and standards for the administration and payments of retirement benefits for the public service of the federation, federal capital territory and the private sector and stem growth of outstanding pension liabilities.