uncredited pension contributions
The inability of PFAs to credit the RSAs of employees could potentially affect their retirement plans. As a result, it is critical to act quickly to correct the situation.The Pension Reform Act 2014 is a pivotal piece of legislation aimed at safeguarding the retirement future of Nigerian workers. By virtue of this legislation, employers who employ three or more workers must make pension contributions to their employees’ RSAs, which PFAs expertly manage.
A nominal RSA is a temporary RSA established for an employee eligible for pension contributions but has not yet chosen a PFA to manage their pension funds. When an employee becomes eligible for pension contributions under the CPS but has not selected a PFA or provided the RSA details to his employer, the employer is still obligated to make contributions on behalf of the employee.As a result, the employer sets up a nominal RSA with a PFA of their choice.