DB and Gratuity Schemes

Defined Benefits Scheme (DBS)

Private employers who meet the requirements for the establishment and have received PenCom’s approval to administer retirement benefits of their employees under the Defined Benefits Scheme (DBS) are allowed to do so.

The Pension Reform Act 2014 allows private organizations to continue DBS, provided: the scheme is fully funded; the pension fund and assets is less than N500 million (if above N500 million, such employer could apply as Closed Pension Fund Administrator), and the administration and custody of the fund and assets will be under a licensed PFA and PFC.

NLPC PFA effectively manages DB schemes as part of its services.

Gratuity Scheme (GS)

At NLPC PFA, we assist organizations that are interested in setting up a Gratuity Scheme for the benefits of their employees at retirement.

Gratuity is a lump sum benefit provided by the employer to reward a qualified employee at retirement for his/her meritorious and long service to the Organization.

Employers can establish a Gratuity Scheme in addition to the obligatory Contributory Pension Scheme (CPS) or Defined Benefit Scheme (DBS).