How CPS Delivers Financial Security Amidst Job Loss Challenges
In a sustained stride towards ensuring the financial security of workers under the Contributory Pension Scheme (CPS), the National Pension Commission (PenCom) approved the disbursement of N20.35 billion to 21,549 Retirement Savings Account (RSA) holders who were disengaged from work in the first half of 2023.
In a sustained stride towards ensuring the financial security of workers under the Contributory Pension Scheme (CPS), the National Pension Commission (PenCom) approved the disbursement of N20.35 billion to 21,549 Retirement Savings Account (RSA) holders who were disengaged from work in the first half of 2023. The action demonstrates PenCom’s dedication to upholding the rights of Retirement Savings Account (RSA) holders in the event of a temporary job loss, as stated in the Pension Reform Act of 2014 (PRA 2014).
The PRA 2014, a visionary piece of legislation, introduced a vital provision allowing pension contributors under 50 years to access 25 percent of their RSA balance in case of temporary job loss. This provision aims to provide a financial cushion to individuals who face the unfortunate circumstance of job loss. Temporary job loss, as stipulated by the PRA 2014, is recognised when an employee remains unemployed for four months after disengagement. Thisday