BENEFITS APPLICATION

These are the payments received by an RSA Holder/Retiree. These payments consist of contributions made into the RSA (Mandatory and Voluntary) as well as returns on investment which have accrued over time.

Benefit payments may also come in the form of en-bloc payment, pre-Scheme/Legacy withdrawal, Voluntary contribution (VC) withdrawals, 25% of RSA balance among others. We provide benefit payment services for more than 20,000 members of Defined Benefits (DB) schemes as well as Define Contributions

We ensure that the payment process is tailored to the needs of our customers by ensuring that the process is flexible, accurate and efficient.
When an employee ceases to make contributions into his RSA account as a result of mandatory or compulsory retirement, or retirement on medical grounds or death, he may access the balance in his/her account. Under the grounds of mandatory retirement, (that is, when an employee disengages from active service at the retirement age or completion of the length of service based on the terms of his/her employment) upon attaining the age of 50 years, the employee is at liberty to choose between programmed withdrawal offered by Sigma Pensions, or annuity (offered by Insurance Companies). Where an employee opts for programmed withdrawal, his RSA account is transferred to the Retiree Fund. However, where an employee opts for annuity as against programmed withdrawal, the balance standing to the credit of his RSA is transferred to an Insurance Company of his choice.
When an employee is compulsorily retired from employment before attaining the age of 50, he is expected to take up another employment and continue to make contributions into his RSA. However, if after a period of four(4) months has elapsed and such employee is unable to secure another employment, he/she is entitled to access 25% of the RSA balance to enable him start up a business and thereby remain sustain and possibly resume contributions into his/her RSA. However, upon attaining the age of 50 years, such an employee may then access the balance standing to the credit of his/her account as a retiree.

Required Documents:

  • Hand written application for 25% withdrawal
  • Age declaration/ birth certificate
  • Redundancy/Termination letter from your employer (must be at least 4 months old)
  • Recent passport photograph
  • Bank account details

Please note that from the day of submission, the receipt of approval from PenCom, and the actual crediting of your account should take an average of 20 working days. You will be notified once the payment has been made.
Every Retiree is entitled to a choice of receiving a lump sum from his account upon retirement. Such lump sum shall be a factor of the Retiree’s age, last salary prior retirement and amount standing to the credit of his RSA. Using a standard template issued by PenCom, the Employee’s lump sum and programmed withdrawal are determined and presented for approval to PenCom. The Lump sum may, however, not exceed 50% of the balance in the employee’s account at the time of retirement.
Upon receipt of PenCom’s approval of programmed withdrawal arrangements, Sigma and the Retiree jointly execute the Programmed Withdrawal Agreement, stating terms and conditions of the programmed withdrawal. A programmed withdrawal agreement is a precondition to the payment of the periodic programmed withdrawal.

Required Documents:
  • Application for lump sum
  • Letter of accrued benefit (from former employer)
  • Retirement letter or letter confirming exit in accordance with terms of employment
  • Appointment letter or affidavit in lieu (compulsory)
  • Age declaration/Birth certificate
  • Bank statement
  • Recent passport photograph
  • PENCOM verification slip if public sector (not compulsory)
  • Indemnity form, if public sector
  • Last 3 months pay slips (all info visible, dated within last 3 months of retirement)
An annuity is defined as a series of fixed payments paid at regular intervals over the specified period of the annuity.
An RSA holder may upon retirement or attaining the age of 50 years (whichever is later), purchase an annuity from a life insurance company licensed by the National Insurance Commission with monthly or quarterly payments.
Required Documents:
  • Application for transfer to annuity
  • Annuity plan
  • Letter of accrued benefit (private sector)
  • Retirement letter or letter confirming exit in accordance with terms of employment
  • Age declaration/declaration of age
  • Appointment letter or affidavit in lieu (compulsory if public sector and fresh annuity)
  • Bank statement
  • Recent passport photograph
  • PENCOM verification slip if public sector (not mandatory)
  • Last 3 months pay slips (all info visible, dated within last 3 months of retirement)
In line with the recent guidelines on Voluntary Contributions (VC) withdrawals by the National Pension Commission, the treatment of VC withdrawal have been summarized below for the different categories of clients:

1. Active/Mandatory contributors:
These category of clients are eligible participants of the Contributory Pension Scheme (CPS); are less than the mandatory retirement age (50 years) OR still in active employment.

They can only withdraw 50% of their VCs after the contributions have been retained for a period of 2 years in their Retirement Savings Account (RSA). The 50% balance will form part of the RSA balance which will either be accessed as Lump Sum and programmed withdrawal or used to purchase an annuity upon retirement.

Subsequent withdrawals shall take place once every two years and will apply to only the additional contributions made after the last withdrawal. Only 50% of the additional contributions made after the last withdrawal can be withdrawn while the outstanding 50% will be accessed at retirement.

Please note that any income accrued on the VC(s) shall be taxable, where the withdrawal is made before the end of five (5) years from the date the VC(s) was made

2. Retirees under the CPS: This category covers any person who is retired and already receiving pension through either Programmed Withdrawal or Annuity.

Provided the VCs were remitted as a result of employment after retirement, retirees under the CPS shall be eligible to withdraw all the VCs in their RSAs only at the expiration of the contract employment or may choose to consolidate part or all to augment their monthly pension.

The tax treatment for this category shall be based on both income and principal amount when withdrawal is less than five years from the date the VCs were credited into the RSA.

Required Documents

  • Application letter (stating the tax id number)
  • Recent bank statement
  • Recent passport photograph
When an employee retires from active service, the balance standing to the credit of his/her account is applied in the determination and payment of his retirement benefits during his retirement. However, where such balance is not more than N550,000, the retiree is considered not to have saved enough during his active years, and his/her RSA balance is enough to cater for the pension payments. In such a case, the Act allows for the entire balance in the Retirees’ account to be paid to the retiree, en-bloc, to enable him/her start up a business and thereby sustain his/her old age.
Required Documents:

  • Letter of accrued benefit (from former employer)
  • Recent passport photograph
  • Appointment letter
  • Age declaration/Birth certificate
  • Retirement /Redundancy/Termination letter
  • Recent bank statement of account
  • Application for lumpsum
An RSA holder retiring on medical grounds is to provide the documents listed on the below:
  • Application for lump sum
  • Letter of accrued benefit (from former employer)
  • Retirement letter or disengagement letter on medical grounds
  • Appointment letter or affidavit in lieu (compulsory)
  • Age declaration/Birth certificate
  • Bank statement
  • One passport photograph
  • Medical certificate (stating that the client is not fit to work)
Where an RSA holder is deceased, the employer or next-of-kin or the representative shall notify Sigma of the death of the employee/retiree, providing evidence of death of the employee/retiree. All benefits due to the deceased including the proceeds of his life insurance policy, accrued pension benefits and accumulated contributions (plus income thereon) shall be processed and credited to a designated bank account of the Executor/Administrator of the deceased’s estate.

Required Documents:

  • CTC Letter of Administration or Will (beneficiary must be specified)
  • medical certification / evidence of death
  • Registration of death (NPC certificate)
  • Police report (if by accident)
  • Passport photograph of deceased
  • Declaration of age (deceased)
  • Recent passport photograph of NOK
  • Means of I.D for NOK (nimc slip/ valid int’l passport/valid driver’s license)
  • Bank statement/Banker’s confirmation of signatories
  • First appointment letter
  • Letter of last promotion (public sector)
  • Letter of first appointment (public sector)
  • Payslips (with grade level / step) as at Jun 2004, Jan 2007 and June 2010 (public sector)
  • Payslip (with grade level / step) as at death (public sector)
  • Letter of introduction from MDA (public sector)
  • Transfer of service letter (for public sector if applicable)
In the event that a retirement savings account holder is reported missing, the employer or Next-of-Kin (NOK) shall notify the Pension Fund Administrator after a minimum period of 12 months. The National Pension Commission then sets up a board of inquiry to ascertain that the client is missing. After investigations have been concluded by the board of inquiry and the client presumed dead, the beneficiary of the missing client or any other person as may be directed by a court of competent jurisdiction will be entitled to the client’s RSA balance upon submission of a Will admitted to Probate or Letters of Administration. Required Documents

  • Means of I.D for NOK (NIMC slip/ valid int’l passport/valid driver’s license)
  • Letter of last promotion (public sector)
  • Declaration of age (deceased)
  • Letter of first appointment (public sector)
  • Letter of introduction from MDA (public sector)
  • Bank statement/banker’s confirmation of signatories
  • Police report on disappearance
  • Newspaper publication of missing person
  • Letter of administration/will (certified true copy)
  • Retirement letter (retiree)
  • Passport photograph (deceased)
  • Passport photograph of NOK
Please note that this does not apply to Employees of the Public Sector.
Required Documents:

  • Application for the refund of Pre- Scheme Contributions
  • Age declaration/ birth certificate
  • Redundancy/Termination letter from your employer
  • Passport photograph (1)
  • Bank account details including the sort code and documents supporting ownership (attached form should be filled by your bank).
  • Statement of account from your bank
  • Letter from Employer, stating whether all terminal benefits have been paid directly to you or not and must clearly state that the applicant made contributions prior to the Contributory Scheme
  • Letter from Employer stating/ confirming Pre- Scheme amount paid into RSA

Upon receipt of the required documents, Sigma will make a submission to the National Pension Commission (PenCom) to obtain an approval for the payment of the amount due.

Please note that from the day of submission, the receipt of approval from PenCom, and the actual crediting of your account may take a number of weeks due to the volume of requests. You will be called and notified once the payment has been made.
With the commencement of the transfer of NSITF contributions into the RSAs, any employee who was a contributor is to fill and forward a form to his PFA.

In order not to experience any delays in the transfer of your funds, please ensure the following guidelines are STRICTLY adhered to:

All transfer Application Forms must have a photocopy of a means of identification and the original membership certificate issued attached. Names of applicants should be filled in on the application form exactly as they have been filled on the membership certificate. For example, Oliver Jackson Tomato can only write his name as Oliver Jackson Tomato on the application form if that is how it was written on the original membership certificate, not Oliver J. Tomato. If the name was Oliver J. Tomato on the certificate, please do not write it as Oliver Jackson tomato. Where an applicant is providing an Indemnity Letter, the subject line must read “Letter of Indemnity and Identity” and the applicants NSITF membership number must be clearly stated using the format as approved by PenCom. Where an applicant is providing a court affidavit, the affidavit must clearly state the applicant’s NSITF membership number. All information on the application form, original membership certificate, and the photocopy of the means of identification must agree.

Once your application has been received, a submission will be made to Trustfund Pensions. At this point, a verification of the claims will be done. Thereafter, all original certificates will be released to the custodian of funds. It is only after the release of these certificates that payments of the contributions will be made into applicants’ individual RSAs.

Please note that the first remittance will be of the contributions made only. Accrued interest will be transferred at a later date upon receipt of guidelines from the National Pension Commission. Letters of notification of payment will be sent out to all whose contributions have been received. NOTE: Should an employer wish to make a submission on behalf of employees they are to do so using the schedule.