Following the circular on VC withdrawals by the National Pension Commission, some adjustment have been made on voluntary contribution withdrawal and have been highlighted below:
- A Retirement Savings Account (RSA) holder will be eligible to withdraw 50% of his VC balance, while the balance of 50% will be retained to augment the retirement benefits of the RSA holder at retirement.
- The VC funds can only be accessed once in two years
- Subsequent withdrawals can only be made on additional contributions credited after the last withdrawal.
It is important to note that tax deduction is applicable where contributions are less than 5 years at the time of withdrawal.
For exempted and foreign contributors, total withdrawals can only be done once in two years. However, all withdrawals are subject to tax deduction on both the income earned and the principal amount if the withdrawal is less than 5years from the date of contribution.