The Pension Reform Act (PRA) 2014 applies to Nigerians working in Nigeria and Nigerians working in Nigerian Missions abroad, so long as those Nigerians are employees of Nigerian institutions abroad. However, PenCom has issued Guidelines for Cross-Border Arrangements to encourage Nigerians who live abroad to partake in the pension scheme only on personal and voluntary basis. So Nigerians living and working abroad can participate in RSA. Also, PRA 2014 does not primarily cover foreigners working in Nigeria. But foreigner/ expatriates working in Nigeria are entitled to make voluntary contributions on Contributory Pension Scheme.
Here are some of the provisions of PRA 2014 that may answer
some of the questions you have especially on what happens to your contributory
pension account when you are relocating abroad.
What happens to your retirement saving account RSA when you
move abroad?
If you resign from an employment in Nigeria and take up
another employment abroad, you are entitled to make arrangements with your new
foreign employer to continue remitting your pension to your RSA in Nigeria in
line with Guidelines for Cross-Border Arrangements. But if you choose to
discontinue with the scheme here in Nigeria or your foreign employer chooses
not to remit your pension to your RSA in Nigeria, you can only have access to
your RSA upon retirement or attaining 50 yours, whichever comes later.
If you operate voluntary RSA as entrepreneur or self-employed,
and decide to move abroad, you can continue to remit your contributory pension
to your RSA in Nigeria while abroad in accordance with the Commission`s
Guidelines on Cross-Border Arrangements. In event you decide to discontinue
with the scheme, you can access your fund upon retirement or attainment of 50
years, whichever that comes later.
For Nigerians returning from abroad, PRA 2014 provides that
a Nigerian previously working abroad shall participate in the Contributory
Pension Scheme, if upon return to the country, has secured a formal employment
in Nigeria. Where the person is not in any employment, he/she may make
voluntary contributions under the Contributory Pension Scheme.
Frequently Asked Questions
Can I move my RSA to abroad?
No. You can only continue to fund your account from abroad.
Can I access my RSA fund from Abroad?
Yes, only upon
retirement or attainment of 50 years, whichever that comes first, and if your
pension fund administrator operates banking system that allows withdrawals in
foreign currencies.
Can I continue with RSA in Nigeria while I am abroad?
Yes, if your new employer abroad agrees to remit your
pension to your retirement savings account in Nigeria or you decide to
voluntarily fund your retirement savings account domiciled in Nigeria
I am relocating to abroad, can I close my RSA in Nigeria?
No, you can't close your RSA because you are relocating
abroad. You can only access your RSA fund upon retirement or reaching 50 years,
whichever comes later.
For more inquires and information on these and more, visit
PenCom or consult your pension fund administrator