FAQ

Complain About NLPC PFA Services

To make a complaint

Available options for making a complaint based on the channel/medium most convenient to you are:-

  1. You may call our 24/7 multilingual contact centre on 01-904-9900
  2. Send a complaint using your registered email address to: customercare@nlpcpfa.com
  3. Chat with us from our website via: www.nlpcpfa.com.
  4. Send a letter to us via our Head Office address: NLPC Pension Fund Administrators Limited 312 Ikorodu Road, Anthony, Lagos.
  5. Visit any of our branches nationwide.
  6. Social media platforms: Facebook, Twitter, LinkedIn

What do I Need to Change my information

Documents for change of name (Female)
  1. A completed Change Request form.
  2. A copy of your marriage certificate or sworn affidavit for the name change.
  3. The full page of the newspaper publication notifying the public of your change of name (Please note that the newspaper page heading must include the name and date of publication as well as the page number). The newspaper publication is only required if a sworn affidavit is provided.
  4. A valid means of ID which could be a Driver’s License or National Identity card or International Passport or Permanent Voters Card.
Documents for change of name (Male)
  1. A completed Change Request form.
  2. A sworn affidavit for the name change
  3. The full page of the newspaper publication notifying the public of your change of name (Please note that the newspaper page heading must include the name and date of publication, as well as the page number).
  4. A valid means of ID which could be a Driver’s License, National Identity card, International Passport or Permanent Voters Card indicating the new name.
  5. A letter from your employer confirming the change of name.
Change in Date of Birth

The RSA holder will undergo the recapturing exercise furnishing us with the under listed documents:

  1. Staff Identity Card or any one of the following
    • National Driver’s License
    • Permanent Voter’s card or  International Passport
  2. Letter of employment
  3. Birth Certificate of Declaration of Age
  4. National Identity Card or Enrolment Slip issued by the National Identity Management Commission
  5. Authenticated Bank Verification Number (BVN)
  6. Evidence of registration with PFA (Pension Certificate or recent statement showing Name and PIN)
Can I change my next of kin or register more than one person as next of kin on my account?

Yes. Your Next of Kin (NOK) can be changed. However if you would like to add additional person, kindly send an e-mail, using your registered email address, to customercare@nlpcpfa.com.

Login Details

How can I change my login details?

Kindly provide your Full Name, PIN and Employer and send a request mail to our customer care: customercare@nlpcpfa.com.

About Contributory Pension Scheme (CPS)

What is the new scheme?

The new scheme is a Contributory Pension Scheme (CPS), fully funded, privately managed pension scheme that is based on individual accounts. It ensures that everyone who has worked receives his/her retirement benefit as and when due.

What are the objectives of the Contributory Pension Scheme?

Ensure that every person who has worked in either the public or private sector receives his/her retirement benefits as an when due; Assist employees by ensuring that they save to cater for their livelihood during old age; Establish a uniform set of rules, regulations and standards for the administration and payment of pension fund in the country: and to stop the growth of outstanding pension liabilities.

How does it work?

A minimum of 18% (employer -10%, employee - 8%) of an employee’s monthly emolument is to be contributed by the employee and employer. (Emolument = Basic Salary + Housing+ Transport Allowance).

What are the advantages and disadvantages of the new scheme?

The new scheme is contributory and fully funded; it encourages individual savings towards retirement; money is available to pay retirees. Retired workers can collect their benefits as and when due; we have checks and balances because pension administration and investment is separated from fund custody and control; and the accumulated contributions bring about development in the economic activities. A major disadvantage is that employees are made to contribute towards their retirement.

What are the advantages and disadvantages of the old scheme?

The old scheme was funded only by the employer. However, the disadvantages include: corruption, outright theft, mismanagement and serial abuse of the pension administration, retirees were not paid as and when due or paid at all; huge pension liability because no money was set aside for pension especially in the public sector; some employers do not have any pension arrangement in the private sector and where it existed, most of the workers squandered their pension benefits when they were in active service.

What will happen to the contribution?

The total contribution will be paid out by the employer directly to a Pension Fund Custodian (PFC) and will be managed and invested by the Pension Fund Administrator (PFA), of the employees’ choice.

Who is a Pension Fund Administrator?

A Pension Fund Administrator is an entity licensed by the National Pension Commission (PENCOM) and charged with the responsibility of managing and investing pension funds. Each employee is free to choose a PFA.

Who is a Pension Fund Custodian?

A Pension Fund Custodian is an entity licensed by the National Pension Commission to keep pension funds and assets in safe custody.

Who is the regulator, and what role does he play?

The National Pension Commission (PENCOM) is charged with the regulation and supervision of the operators as well as formulates, direct and oversee the overall policy on pension matters in Nigeria.

What is Retirement Savings Account?

This is similar to a bank account. Every contributor will open a Retirement Savings Account (RSA) with a Pension Fund Administrator of his/her choice. The PFA will be required to issue a statement of account at least once every quarter. Unlike a bank account, withdrawal from RSA is only at retirement, death or loss of job.

Are pension contributions paid to the PFAs?

No. The employer sends both the employee’s as well as the employer’s monthly contributions directly to the Custodian.

What makes NLPC Pension Fund Administrator different from other PFAs?

Our experience, integrity, expertise and door-to-door personalized service delivery to clients stands us out among our numerous competitors out there. NLPC PFA is simply a name synonymous with pensions because of our pedigree.

What happens to my account when I change job?

Your RSA is portable and mobile which will remain with you for life. Simply notify your new employer of the PFA that manages your account and thereafter your contributions will be sent to its Custodian.

What happens if my new employer does not use my PFA?

The Retirement Savings Account (RSA) is a portable and mobile account; it does not matter whether your new employer does not use the existing PFA; what you need to do is to inform your new employer of an existing RSA and advise them to continue to remit into the same RSA. Alternatively, the Act allows RSA holder to transfer once a year without any reason, hence, you may switch to the PFA in the new company.

Can I switch PFAs?

Yes. The employee has the freedom to move once a year from one PFA to another (without any reason). Although the guidelines are out, the effective date for its commencement is yet to be announced by the National Pension Commission.

Remittance of pension contributions

How can I keep track of my investments?

Pension Fund Administrators will issue quarterly statements to employees. Also, employees can access their statement of account on our website (www.nlpcpfa.com) using the user name and password issued to them on request. Also, statement of account can be issued on request and through SMS transaction alert via their mobile phone

Can I make additional contributions into my account?

A RSA holder can make additional contributions to his account as Voluntary Contributions (VC). VCs are supplementary contributions that can be made alongside your mandatory contributions to your Retirement Savings Account (RSA). Remittance of VC must come through your employer. The payment schedule provided to your employer, has a column for VC: this column should be imputed with the amount you choose to contribute as VC.

Please note that your VC will be credited to your existing RSA and your statement of account will also show the details of your VCs to enable you monitor the growth.

I haven’t received any email or SMS alerts in a while. Why?

This may be because your mobile telephone number has changed and you are yet to update your new phone number on our records. If your mobile telephone number is correct, it could mean that we have not received any contributions on your behalf recently.

What can I do if my employer fails to remit my monthly pension contributions?

The Pension Reform Act 2014 requires employers to remit pension contributions on behalf of their employees within 7 working days from the payment of salaries. The Act also provides that where the employer fails to either deduct or remit the contributions within the stipulated time, the employer will be liable to pay a penalty that is not less than 2% of the total outstanding contributions that remains unpaid for each month or part of each month the default continues. Kindly note that employees are therefore required to liaise with their employers to ensure that their pension contributions are remitted into their Retirement Savings Accounts.

Can I use my pension contributions as collateral for securing loan?

No, pension contributions are non-assignable, non-transferable and cannot be used as collateral for any loan (under review). It is basically meant to serve you at old age/retirement when you can no longer actively cater for yourself.

Can I borrow part of the contributions in my RSA to help me out of pressing financial crises?

No, the RSA does not run like your bank account or cooperative account, so it is impossible for you to withdraw any part from your RSA. Yes, if you have a voluntary contributions.

Is it possible for my employer to access my contribution at any time for whatever reason?

The Retirement Savings Account is a personal account and can only be accessed by the owner except in death cases. However, in some states (e.g. Lagos State) employees may be denied access to their accounts until issues of indebtedness with their employer are resolved.

How and where do you invest my pension contributions?

Pension contributions are invested in line with the provisions of pension Act and investment guidelines. The permissible area of investment include: government bond, treasury bills, money market, stock markets, mutual fund, real estate etc. The return on such investment is added to the fund less management fees as prescribed by PenCom.

What will happen to my contributions under the RSA if I move to employer with DBS?

Your contributions will remain in your Retirement Savings Account (RSA) till you finally retire from work. Yet, you can contribute voluntarily to keep the account growing. However, the National Pension Commission will give the final pronouncement to the client on how to access the benefits under the CPS and DBS whether it will be merged or administered separately.

How safe are my contributions in the event of liquidation of my PFA or PFC?

Your contributions are insulated from crises. This is because PFAs and PFCs are only carrying out the administrative and investment functions and monies are not really in their custody but invested in varieties of instruments. Where a PFA or PFC liquidates, the various investments in their custody will be transferred to another PFA or PFC as the case may be. It should be noted the National Pension Commission is fully aware of all the transactions and in possession of relevant data.

Statements of accounts

Why is my RSA reading zero balance?

This is most likely because your employer is yet to remit your monthly pension contributions. Kindly liaise with your employer or PFA on the way forward. For public employees (Federal), please check “Non remittance of Pension Contributions” under our Pension Administration module.

I do not understand some of the terms used on the statement, please explain.

Contributions Received from Inception: This is the sum of contributions received on your behalf from your employer before any investment activity by us, less N100 Admin fee/month.

Total Withdrawals from Inception: This refers to the total amount of money that has been paid out to you as Voluntary Contribution (VC), retirement benefit payments or the total withdrawals made on your account based on the advice of your employer.

Gain/Loss from Inception: This refers to the profit or loss made on your account as a result of investing your monthly contributions. It is worth mentioning that the gains outweigh the losses in most cases because of the strict investment guidelines that have been placed on pension funds by our Regulator, the National Pension Commission (PenCom).

Current Value: This is the addition of your total net contributions and the growth on your contributions, after your contributions have been invested. This means that your current balance is usually higher than your actual pension contributions because the contributions are constantly being invested. As a result, your current balance changes daily.

Units: This represents the number of units allotted to you at the point of crediting your Retirement Savings Account (RSA) with the contribution received on your behalf. Mathematically, it is arrived at by dividing the contribution received by the fund price of the previous day. The total unit for a given period (e.g. a year) will be sum total of all the allotted units per monthly remittance. Unit Price: This is the prevailing fund price on a given day your contribution credited into your account. This mathematically is calculated as the total contributions brought in a day divided by the total allotted units of the previous day.

Why does my account balance fluctuate?

The difference observed in your Retirement Savings Account (RSA) balances is a result of the changes in the RSA Fund’s unit price. These price changes are a summary of the investing activities of the fund. The unit price of the RSA Fund is computed by dividing the Net Asset Value (NAV) of the Fund (contributions + appreciation/depreciation) by the actual contributions received. However, because up to 25% of the Fund can be invested in stocks (whose prices rise or fall daily) the unit price of the Fund may appreciate or depreciate over time. We expect the RSA Fund to appreciate over the long term.

Payments of benefits at retirement

When can I have access to the fund in my account?

Upon either retirement or at age of 50 whichever is later provided you are no longer in employment. Also, the RSA holder can access his/her benefits if due to ill health or disability confirmed by the employer and certified by medical practitioner or medical board not minding whether such employee is age 50 or not.

Can I withdraw any portion of it?

Yes. If the employee is resigned or disengaged and he is below age 50. Therefore, if after four (4) months of such disengagement from work and could not secure a new job; such employee is entitled to 25% of his Retirement Savings Account (RSA) balance.

How do I receive my retirement benefit?

At retirement or upon reaching age 50 – when you are no longer in employment, the amount in your RSA shall be used to purchase a programmed withdrawal or purchase an annuity that would guarantee an amount of not less than 50% of your last annual remuneration (subject to RSA balance) to be paid to you monthly or quarterly as pension for life (in case of annuity).

What is Fund Programmed Withdrawal?

A programmed withdrawal is the method by which the employee collects his accumulated benefits both in lump sum and by periodic payments usually monthly or quarterly for the length of an estimated life span. The lump sum benefits and monthly pension is expected to be paid into the retiree’s bank account. Only PFAs are licensed to offer this product.

What is Annuity?

An annuity is an income with monthly or quarterly payments during the lifetime of a retiree that is purchased from a licensed life insurance company approved by the National Pension Commission. The single premium for this is first deducted from your RSA. The balance, if any, would then be taken as lump sum.

How much do I receive as benefit at retirement?

If RSA balance is less than N550,000.00 (Five Hundred and Fifty Thousand Naira) at the time of retirement, the entire benefit is paid En Bloc. Where the RSA balance is more than N550,000.00, the employee is entitled to a minimum of 25% and up to 50% en bloc payment as well as monthly pension for an estimated life span.#

Would I have access to all my money after retirement?

Yes, if your current contribution (contributions plus return) is not more than N550,000.00 at retirement; otherwise, you will only be entitled to a lump sum cash and monthly pension based on Programmed Withdrawal option or Annuity option.

Can I continue to contribute to my RSA after I have retired and accessed my retirement benefits?

Yes. A retiree receiving monthly pensions, who secures another employment after retirement can continue to contribute to his RSA. The contributions received will be credited to the retiree’s account as Voluntary Contributions and can be accessed at your convenience.

What happens to my benefit in the event of death?

The beneficiary will be entitled to the benefit from the compulsory life insurance policy as well as the total benefits from the contributory pension scheme and other benefits (e.g Lagos State Public Service). The benefits would be paid en bloc into the beneficiary’s (ies’s) bank account(s).

How long will it take to process my benefit after retirement?

At NLPC PFA, we are desirous to pay your retirement benefits in less than one month from the date of submitting all the required documentations.

Why does it take a longer time to pay the death benefit?

Most of the death cases are usually without a Will, which means that the beneficiary would have to apply to the Probate Registry for Letter of Administration which takes a long time to secure. You are therefore advised to have a Will by using the service of a competent lawyer.

Who is a beneficiary?

This is a person (s) recognized by law to be entitled to all the benefits payable to a deceased employee or client through the instrumentality of a Will or Letter of Administration.

Who is a next of kin?

This is a named person(s) to be contacted in the absence of the client for information purpose.