Some Employers are getting approval from National Pension Commission (PenCom) to set up Additional Benefit Schemes to enable them pay their Employees Additional Benefit in-addition to remittance of pension contributions. This was disclosed in a report released by PenCom.
PenCom stated in the report that it has granted approval to five (5) private sector organizations and one public agency to establish Additional Benefits Schemes for their employees in line with the provisions of Section 4(4)(a&b) of Pension Reform Act 2014, which states that; Notwithstanding any of the provisions of this Act, an employer may agree on the payment of additional benefits to the employee upon retirement or elect to bear the full responsibility of pension contributions provided that in such a case, the employer’s contribution shall not be less than 18% of the monthly emoluments of the employee.
It’s quite unfortunate that PenCom did not disclose the names of these employers because these employers deserve to be celebrated, most employers only comply with the minimum provisions of contributing 10% of the employees total emoluments as employer pension contribution and boost that they have done all that is required of them.
We hope more employers, especially multinationals, huge cooperation, and pension operators will go beyond the minimum requirement and provide Additional Benefit Schemes for their employees rather than meet the minimum requirements and call it a day.
Meanwhile, as an employee, do not wait for your employer, also note that you can make Additional Contribution into your Retirement Savings Account as this will boost the balance in your RSA at retirement.
Support PensionNigeria financially here, empower us to do more independent analysis of the Pension Industry in Nigeria
Subscribe to PensionNigeria Weekly Newsletter to ensure you don’t miss any post Click here to Subscribe
Pension is Your Right,
An Insurance for Old Age
Follow PensionNigeria on Social Media LinkedIn Twitter Instagram Facebook YouTube