The National Pension Commission (PenCom), has warned that any disengaged employee who temporarily accesses his/her Retirement Savings Account (RSA) balance shall not have further access to it, including additional remittances until the person attains either the age of 50 years or retires.
Also, PenCom stated that an employee may access his/her RSA as a result of mandatory retirement, compulsory retirement, retirement on medical grounds and temporary loss of employment/disengagement.
This information is contained in the revised regulation on the administration of retirement and terminal benefits of workers enrolled in the Contributory Pension Scheme (CPS) and published on the Commission’s website.
“Any disengaged employee who temporarily accesses his/her RSA balance shall not have further access to the RSA balance, including additional remittances, until he/she attains the age of 50 years or retires (if he/she is re-engaged), whichever is later.
“An employee may access his/her RSA as a result of mandatory retirement, compulsory retirement, retirement on medical grounds and temporary loss of employment/disengagement,” PenCom said.
Under the rules of general application, grounds and notification for accessing RSA, the PenCom explained that mandatory retirement shall be when an employee disengages from service at either the retirement age or completion of the length of service based on the terms of the worker’s employment, after attaining the age of 50 years.
In the same vein, it stated that compulsory retirement under the regulation shall be when an employee is disengaged from service in accordance with the terms and conditions of service, before attaining the age of 50 years.
“Retirement on medical grounds shall be when an employee disengages from service before attaining the age of 50 years based on the advice of a suitably qualified physician or medical board, stating that the employee is no longer mentally or physically capable of carrying out the functions of his/her office due to total or permanent disability either of mind or body,” the PenCom further explained.
According to PenCom, “temporary loss of employment or disengagement shall be where an employee voluntarily retires, disengages or is disengaged before attaining the age of 50 years and is unable to secure another employment after four months of the disengagement.”
The revised regulation stipulates that an RSA holder shall, within six months to his/her mandatory/compulsory retirement, notify the Pension Fund Administrator (PFA) of his/her intention to retire from service and provide the necessary documentation as outlined in the law.