help
Pension Remittance
How to Contribute to Your RSA as an Employee
The Pension Reform Act (PRA) mandates employers to contribute to their employees’ Retirement Savings Accounts (RSAs). The minimum contribution is 10% from the employer and 8% from the employee, totaling 18% of the employee’s monthly earnings. These contributions are transferred to the Pension Fund Custodian (PFC) using the following account details:
- Account Name: UPCL/Radix Pension RSA Contribution A/c
- Receiving Bank: UBA Plc
- Account Number: 1010527796
- Sort Code: 033153665
View Remittance Schedule for contributions
Breakdown of Contributions
- Employee Contribution: 8% (deducted from monthly salary)
- Employer Contribution: 10% (paid by the employer)
How to Contribute to Your RSA
- For Employees: Inform your HR department of your selected Pension Fund Administrator (PFA) and provide your RSA Personal Identification Number (PIN). This PIN begins with “PEN” followed by 12 digits (e.g., PENXXXXXXXXXXXX).
- For Employers: Make payments to the designated PFC account and submit a contribution schedule in Excel format, including employees’ RSA PINs. Ensure an employer code is obtained before initiating remittances.
Your contributions are invested to generate returns for your retirement, and you can enhance your retirement savings by making Voluntary Contributions.
The Voluntary Contribution (VC) applies to an existing RSA holder intending to boost his/her individual Retirement Savings. In other words, the RSA holder is willing to contribute more than the statutory 8% (employee portion) and 10% (employer portion) of the monthly emoluments.
Based on instructions given to your employer, the contribution is deducted from your monthly emolument by the employer and remitted into your Retirement Savings Account (RSA), along with the statutory pension contributions.
RSA holders can withdraw voluntary contributions at any time. However, income earned on these contributions is taxable if withdrawn within the first year
To address the growing interest of Nigerians living abroad in the Nigerian Contributory Pension Scheme, the National Pension Commission (PenCom) has established guidelines for participation and limitations through its Cross-Border Arrangement.
Many pension schemes impose waiting or vesting periods that can result in the loss of pension rights for expatriates working in foreign countries. Additionally, some schemes may not allow for the transfer of pension benefits to countries with which they do not have cross-border agreements.
The primary goal of the Cross-Border Arrangement guidelines is to encourage Nigerians living abroad to participate in the Contributory Pension Scheme and save towards their retirement in Nigeria.
For a complete copy of the Cross-Border Arrangement guidelines, please visit the National Pension Commission website:
Click for more info