Any company operating a defined scheme that is desirous of continuing the scheme must, in addition to satisfying other conditions specified in the Act, open RSAs so that the pension funds can be held by a custodian. Computation of the accrued pension rights to be credited to the RSAs shall be done by actuarial valuation.

The contributions into NSITF made by those exempted from the new scheme shall be computed and credited into their respective RSAs opened by the NSITF pending the retirement of such contributions.

Retirement benefits shall be paid to existing pensioners under the rules upon which contributions were made, under the supervision of the National Pension Commission.

NSITF will continue to provide social services other than pension to the country.

NSITF will only handle pension matters of existing pensioners and those exempted by the Act who have contributed to the NSITF under the supervision of the National Pension Commission.

A contributor or beneficiary under NSITF Act can only move his contributions under NSITF to another PFA after a period of five years from the date of commencement of the Pension Reform Act 2004.

The pension funds contributed to the NSITF before the commencement of the new pension scheme including the income shall remain with the NSITF for a minimum period of five years from the commencement of the Pension Reform act 2004. NSITF shall establish a company to be licensed by the National Pension Commission as a PFA which will manage the pension funds in accordance with the provisions of the Pension Reform Act 2004.

The RSA remains with the PFA of your choice for as long as you want. You simply notify your new employer of the details of the PFA that manages your account and thereafter your contributions will be sent to the custodian of the PFA.

An actuarial valuation of his/her accrued retirement benefits will be made and the amount plus his contributions to date will consist of his/her retirement benefits in his/her RS which can only be accessed at the age of 50 years. Withdrawals from the RSA will depend of the professional advice of the PFA having regard to the provisions of the Pension Reform Act 2004 which provides for lump sum withdrawal, programmed withdrawals or purchase of annuity.

In the public service, Pension Departments have been created to carry out the functions of the relevant pension boards or offices in the public service of the Federation and Federal Capital Territory with a view to making regular and prompt payment of pension to existing pensioners.

Pension Boards in the private sector existing before the coming into force of the Pension reform Act2004 will continue to administer the pensions of the existing pensioners and the National Pension Commission will supervise such boards.

In the case of funded pension schemes in the public service of the Federation and the private sector, employers shall undertake actuarial valuation of the employee’s accrued benefits and credit the Retirement Savings Accounts (RSAs) of its employees with such funds and in the event of any deficiency, the shortfall shall become a debt as shall be treated with the same priorities as salaries owed. The employer shall also issue a written acknowledgement of the debt and take steps to meet the shortfall.

The Federal Government has established a Retirement Benefit Redemption Fund Account in the Central Bank of Nigeria. The Federal Government is already making a monthly payment into the fund of an amount equal to 5% of the total monthly wage bill payable to all employees of the Federal Government and the Federal Capital Territory.

Employee’s right to accrued retirement benefits for the previous years he/she has been in employment is guaranteed by the Pension Reform Act 2004. In the case of the public service of the Federation and the Federal Capital Territory, where pension scheme was unfunded, the right would be acknowledged through the issuance of a “Federal Government Retirement Bond” to such employees. The bond will be redeemable upon retirement of the employee.