The National Pensions Commission says that employees can make Voluntary Contributions into their Retirement Savings Account besides mandatory pension contributions.
The commission’s spokesman, Peter Aghahowa, confirmed this in an interview with the News Agency of Nigeria in Lagos on Monday.
According to Aghahowa, the Pension Reforms Act 2014 permits employees to make VC into RSA besides the mandatory pension contributions.
Aghahowa said the sole aim of the VC was to enhance retirement benefits of Nigerian workers after retirement.
He said: “It is pertinent to note that the PRA 2014 permits employees to make voluntary contributions into their RSA in addition to the mandatory pension contributions to enhance retirement benefits.
“The contributions must not necessarily be made through the employer.”
He said the guidelines spelt out criteria for participation included eligibility, procedures for contributions, safeguards and modalities for its withdrawals.
Aghahowa said other objectives of such contributions were “to assist retirees under the defunct Defined Benefit Scheme exempted from the Contributory Pension Scheme and foreigners to enhance savings for livelihood at old age.
He said: “To encourage retirees under CPS to utilise part or all of the Voluntary Contributions to augment their existing pensions.”
He urged contributors to be guided by the guidelines and direct further enquiries on VC to their respective Pension Fund Administrators.
PenCom further urged the contributors to obtain full guidelines from the commission or their PFAs.