Home ownership requirements for pension contributors must be met for five years — PenCom
To be able to utilise the balance in their Retirement Savings Accounts (RSAs), contributors under the Contributory Pension Scheme (CPS) must have made contributions for five years (60 months).
The National Pension Commission’s, PenCom’s, Head of Investment Department, Mr. Ibrahim Kangiwa, who made this disclosure, said that the obligation also applies to contributors to the Micro Pension Plan (MPP).
Kangiwa added that married couples who each complete the eligibility requirements are also eligible when presenting the theme paper at a conference for pension journalists in Lagos organized by the Pension Fund Operators Association of Nigeria, PenOp.
Kangiwa stated that 25% of the RSA balance is the maximum permitted for an authorized equity contribution, with the caveat that the RSA holder can only access funds equating to the needed equity contribution in cases when 25% of the RSA balance is greater.
When a 25% equity contribution is insufficient, an RSA holder may use a voluntary contribution (VC) in accordance with the voluntary contribution rules.
Where a 25% equity contribution is insufficient, a Micro Pension (MP) contributor may use a contingency share in accordance with MP criteria.
Where a 25% equity contribution is insufficient, the RSA holder must deposit the shortfall with the mortgage lender, according to Kangiwa.
Olumide Oyetan, President of PenOp and Managing Director of Stanbic IBTC Pension Managers, stressed earlier in his remarks the importance of collaboration among stakeholders to guarantee the proper implementation of the recommendations.
