Pension News

PenCom provides Scanty Update on using RSA for Payment of Residential Mortgage

The right for Retirement Savings Account (RSA) holders to use a portion of their RSA balance for payment of residential mortgage was introduced with the Pension Reform Act 2014 but it has remained unimplemented since then with National Pension Commission (PenCom) providing little or no update on its implementation.

In the year 2015, PenCom released the first “Draft Guidelines on Withdrawals from Retirement Savings Account (RSA) Towards Equity Contribution for Payment of Residential Mortgage” for operators to send their Comments to PenCom. In PenCom 2015 Annual Report, PenCom said it will develop the operational Guidelines on how this provision would be implemented and it is expected that the Guideline would be finalized in 2016, which would give RSA holders the opportunity to use their RSA balances to own homes.

The Guideline was not implemented in 2016 and in PenCom 2016 Annual Report, PenCom revealed that the guideline was undergoing the approval process and it is expected that in 2017 the approved guidelines for accessing mortgage by RSA holders under the Contributory Pension Scheme would be released.

You guessed right, the Guideline was not released in 2017 and in PenCom 2017, 2018, 2019 and 2020 Annual Reports, PenCom did not provide any update on using RSA for residential mortgage.

In 2021, PenCom again released a Draft Guideline on using RSA for residential mortgage to operators and in PenCom 2021 Annual Report, PenCom said it is working on developing the “Guidelines on Equity Contribution for Payment of Residential Mortgage by Retirement Savings Account Holders” and also confirmed that the draft Guidelines has been exposed to key stakeholders for comments and inputs.

Will RSA holders ever be able to use part of their RSA balance for Residential Mortgage?

At PensionNigeria, we believe the answer is YES, the implementation might not be as fast as we expect but for PenCom to have revisited the issue in 2021, is a GREEN light.

In anticipation of this, PensionNigeria is working on a compilation of everything you need to know about using RSA for Residential Mortgage based on the draft guidelines released by PenCom, signup for our Newsletter to be the first to know. Click here to Subscribe

Check below for PensionNigeria breakdown of all the important aspects of the PenCom 2021 Annual Report

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PenCom 2021 Annual Report Breakdown

Chairman’s Statement in PenCom 2021 Annual Report
Director General’s Report in PenCom 2021 Annual Report
Analysis of Pension Operating Environment for the Year 2021
Micro Pension Registrations per PFA as at Dec 2021 and Fastest Growing PFAs by Micro Pension Registrations
Update on the Micro Pension Plan for Year 2021
N93.49 Billion Pension Contributions not in Contributors Retirement Savings Account
Defaulting Employers pay Penalties of N10.03 billion into Employees RSA as PenCom takes 67 Employers to Court
Redacted Reports – Unfunded RSAs and RSAs with Incomplete Documentation
PTAD paid N99.94 billion to Federal Government Retirees in 2021
PenCom Stakeholder Engagement and Public Enlightenment Activities in 2021
Biggest PFAs by RSA Pension Fund Assets under Management & Fastest Growing PFAs in 2021
Update on Implementation of Minimum Pension Guarantee
PenCom provides Scanty Update on using RSA for Payment of Residential Mortgage
PenCom approved over N1.46 Trillion for PFAs to pay RSA Holders
PFAs made over N340.57 Billion Total Income in 3 years

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