PENSION IN NIGERIA

· In Nigeria, the procedure for pension is govern by The Pension Reform Act 2014 (PRA)

· The Pension Reform Act 2014 (PRA) created a uniform contributory pension scheme (CPS) for the public and private sectors in Nigeria.

· Pension Contribution is mandatory for employer with 15 or more employees.

· The Micro Pension Plan (MPP) was launched in March 2019 which seeks to provide pension services to self-employed persons in the informal sector and organizations with less than three employees.

· The Pension Reform Act 2014 (PRA) is silent on organizations with 3 to 15 employees.

· Members of the Armed Forces, the Intelligence and Secret Services of the Federation are exempt from CPS.

· CPS is optional for expatriates as foreign individuals often keep their offshore pension plan.

· The employer and employee contributions are a minimum of 10% and 8% of the employee’s monthly emolument.

· An employer may decide to make the entire contribution, subject to minimum contribution of 20% of monthly emolument.

· Companies are required to deduct as well as remit the employee’s and employer’s monthly contributions to the Pension Fund Administrator (PFA).

· An employee is required to open retirement savings account with an approved PFA.

· Due date for Pension remittance should be not later than seven working days after the payment of salaries.

· Non-compliance attracts a penalty of at least 2% of the unpaid amount.

· An employee can file a whistle-blowing report where an employer does not pay retirement benefits correctly or promptly.