Voluntary Pension Savings
Did you know that in addition to the mandatory contribution, you can also make Additional Voluntary Contributions (AVC) into your Retirement Savings Account (RSA)? These funds would be deducted from your monthly emolument by your employer and remitted into your Sigma Pensions RSA along with your regular pension contributions.
AVCs are different from your regular savings as the contributions are tax-free (deducted from your salary before tax), thereby lowering your overall tax liability.
Rationale for Additional Voluntary Contributions
- Increased funds available at retirement
- Setting aside an additional amount on a regular basis, no matter the amount, helps secure a more comfortable retirement
- Where the mandatory 18% contributions are inadequate, AVC can enable achievement of the contributor’s retirement objectives
Advantages of Additional Voluntary Contributions
- A higher Retirement Savings Account balance at the time of retirement.
- AVC are pooled into the Sigma Pensions Active fund and therefore invested in the same meticulous manner as the statutory pension contributions. Hence contributors also benefit from an attractive investment income at a higher interest rate than the conventional savings account.
- Access to AVC account before the age of fifty years. Fifty years of age or thirty-five years of service are not binding for the voluntary saver.
- Savings are done at RSA holder’s convenience. Savings can either be done weekly, monthly quarterly or half yearly.
- Unlike the statutory contributions, 50% of AVC can be withdrawn every two years (from your last approved withdrawal date) before retirement to meet specific needs
- Where AVC is withdrawn within 2 years, account holders pay income tax on the accrued interest only and not on the principal amount.
- AVC contributions qualify RSA holder for a tax rebate.
Start AVC by sending an e-mail to your HR Manager or Pension Desk Officer indicating the amount and frequency with which you would like to contribute, as an addition to your statutory contributions.
To withdraw your AVC, complete and submit our benefit withdrawal form, attaching a passport photograph and letter requesting for the specified funds. Your application will be processed, and benefits paid within 2 weeks. Alternatively, you can send an email to your Relationship Manager or firstname.lastname@example.org.