The National Pension Commission (PenCom) and the Pension Operators Association of Nigeria (PenOp) on Saturday explained the standard required for Retirement Savings Account (RSA) holders to access their equity contributions for the acquisition of the residential mortgage plan.<\/p>\n\n\n\n
The PenCom regulator and operators revealed this at the 2022 media parley organised by PenOp for journalists covering the pension industry in Lagos.<\/p>\n\n\n\n
Mr Ibrahim Kangiwa, Head, Investment Department, PenCom while presenting a paper, said the objective of the RSA for acquisition of residential mortgage was to provide housing for first time home owners.<\/p>\n\n\n\n
Kangiwa stated that the initiative would improve the standard of living of RSA holders under the CPS by facilitating their ownership of residential homes during their working life.<\/p>\n\n\n\n
He noted that the RSA equity contribution was not for refinancing existing mortgage, outright purchase of property and purchase of land, but to purchase buildings for residential purpose only.<\/p>\n\n\n\n
According to him, contributors under the CPS eligible to use their RSA balance for acquisition of residential mortgages must have contributed for five years, equivalent to 60 months cumulative of employer and employee\u2019s mandatory contributions.<\/p>\n\n\n\n
The PenCom official noted that the condition was applicable to contributors under the Micro Pension Plan (MPP), while married couples, who individually met the eligibility criteria, were also eligible.<\/p>\n\n\n\n
Kangiwa said the the maximum authorised limit for equity contribution that qualifies a contributor, was 25 per cent of the RSA balance.<\/p>\n\n\n\n
\u201d Where 25 per cent of RSA balance is more than equity contribution, the RSA holder can only access the amount equivalent to equity contribution required.<\/p>\n\n\n\n
\u201cWhere 25 per cent is not sufficient for equity contribution, RSA holder may utilise Voluntary Contribution (VC) in line with the Voluntary Contribution guidelines.<\/p>\n\n\n\n
\u201cWhere 25 per cent is not sufficient for equity contribution, Micro Pension (MP) contributor may utilise contingency portion in line with MP guidelines.<\/p>\n\n\n\n
\u201cWhere 25 per cent is insufficient as equity contribution, RSA holder shall deposit the difference with the mortgage lender,\u201d he said.<\/p>\n\n\n\n
According to him, those exempted from the initiative were RSA holders that have less than three years to retirement and existing retirees on CPS.<\/p>\n\n\n\n
Kangiwa also named exempted persons under the PRA 2014 and RSA holders who do not have both employer and employee\u2019s mandatory contributions for a cumulative minimum period of 60 months.<\/p>\n\n\n\n
Earlier in his remarks, President, PenOp\/Managing Director, Stanbic IBTC Pension Managers, Mr Olumide Oyetan charged all pension stakeholders to work together to ensure the successful implementation of the guidelines.<\/p>\n\n\n\n
Oyetan said the successful implementation of the initiative would improve people\u2019s welfare and contribute to economic development.<\/p>\n\n\n
The National Pension Commission (PenCom) and the Pension Operators Association of Nigeria (PenOp) on Saturday explained the standard required for Retirement Savings Account (RSA) holders to access their equity contributions for the acquisition of the residential mortgage plan. The PenCom regulator and operators revealed this at the 2022 media parley organised by PenOp for journalists […]<\/p>\n","protected":false},"author":2,"featured_media":24603,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1366,949],"tags":[398],"class_list":["post-47102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-economy","tag-mortgage-2","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"yoast_head":"\n