Frequently Asked Questions


MULTIFUND QUESTIONS
1. WHAT IS THE CONTRIBUTORY PENSION SCHEME (CPS)?
Contributory Pension Scheme (CPS) is an arrangement where both the employer and the employee contribute a portion of an employee's monthly emolument towards the payment of the employee's pension at retirement. It ensures that everyone who has worked for the Public or Private Sector receives his or her pension benefits as and when due

2. WHAT ARE THE BENEFITS OF THE CONTRIBUTORY PENSION SCHEME?
It ensures that the worker receives his or her benefits as and when due. Also, it enables the employee to save and ensures a steady income during retirement. Strict regulations by National Pension Commission (PENCOM) guarantee the safety and security of the funds by Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs)

3. CAN I CONTRIBUTE MORE THAN THE MANDATORY CONTRIBUTION TO MY PENSION FUND ADMINISTRATOR (PFA)?
Yes, you can. Contributions above the mandatory contributions are called Additional Voluntary contribution (AVC) and are deducted from source by employers.eryone who has worked for the Public or Private Sector receives his or her pension benefits as and when due

4. WHAT IS PROGRAMMED WITHDRAWAL?
A programmed withdrawal is a method by which the retiree employee collects his retirement benefits in periodic sums spread throughout the length of an estimated life span.

5. WHAT HAPPENS TO MY RETIREMENT SAVINGS ACCOUNT (RSA) WHEN I CHANGE JOBS?
The RSA remains with the PFA of your choice for as long as you want. You simply notify your new employer of the details of the PFA that manages your account and thereafter your contributions will be sent to the custodian of the PFA.

6. How do I make a complaint to Fidelity Pension Managers?
- You may call us on or 01-4626969 between the 8:00 am and 5:00 pm on weekdays (Mondays – Fridays)
- Send your complaint to customercare@fidelitypensionmanagers.com or info@fidelitypensionmanagers.com
- Chat with us via our website –www.fidelitypensionmanagers.com
- Visit any of ourHead office (3rd Floor, 2 Adeyemo Alakija, Victoria Island, Lagos) or our branches nationwide .

7. ARE MY PENSION CONTRIBUTIONS PAID TO FIDELITY PENSION MANAGERS?
Pension contributions are paid directly to our Pension Fund Custodians (PFCs) - First Pension Custodian, UBA Pensions Custodian and Access Pension Custodian). These PFCs have the responsibility of warehousing pension fund assets and they execute transactions and undertake activities relating to the administration of pension fund investments upon our instructions at Fidelity Pension Managers.

8. WHAT IS A FIDELITY PENSION RETIREMENT SAVINGS ACCOUNT (RSA)
A retirement savings account is defined contribution plan account which can be opened by every employee in an organization with 3 staff or more. Every employee or contributor under the new pension scheme is expected to open a retirement savings account (RSA) in his/her name with a PFA of his/her choice into which all his/her contributions and returns on investment are paid.

9. Once I have opened a Retirement Savings Account with Fidelity Pension Managers, what are my responsibilities as an employee?
- Making an 8% contribution to your Retirement account as carried out by your employer
- Ensuring your employer matches your contributions with a 10% contribution to your retirement account
- Making regular Additional Voluntary Contributions to your account.

10. HOW DO I MAXIMIZE THE BENEFITS OF HAVING A RETIREMENT SAVINGS ACCOUNT WITH FIDELITY PENSION MANAGERS?
First, ensure mandatory contributions are made every month. Contributions and Investments returns are tax-free. Regular contributions compound longer and consequently provide a larger return. You could also make Additional Voluntary Contributions (AVC) to your Retirement Savings Account you effectively reduce your Income Tax burden.

11. How do I monitor my Retirement Savings Account (RSA) with Fidelity Pension Managers?
You can monitor RSA account details via:
- Mobile Application: FidApp
- Our Website: www.fidelitypensionmanagers.com
- SMS notification: This shows your balance and any other financial transaction on your RSA
- Fidelity Pension Managers will also send you quarterly statements by email and through your mailing address.

12. What happens to my Retirement Savings Account (RSA) and contributions when I change employers?
A change in employer does not affect your RSA as it is transferrable from one employer to another. Please inform your new employer of your pension details including your RSA number (RSA PIN) and the name of your PFA (Fidelity Pension Managers) details. You must inform us whenever your details change to enable your records to be updated on our database.

13. Does the Retirement Savings Account (RSA) operate like a Bank Account?
Unlike a bank account, the RSA can only be accessed at retirement, loss of job, medical incapacitation or in the event of death.

14. Who receives the monthly pension contributions?
The employer deducts and remits both the employee and employer portions of pension contributions to the Pension Fund Custodian (PFC). The PFC notifies the Pension Fund Administrator (PFA) immediately upon receipt of the contributions.

15. CAN NIGERIANS WORKING ABROAD PARTICIPATE IN THE CONTRIBUTORY PENSION SCHEME (CPS)?
Nigerian citizens working abroad are not mandated by law to participate in the CPS. However, they may voluntarily participate

16. WHAT IS A UNIT?
A Unit is the quantity of your investment holdings in fund which if multiplied by the unit price at any particular point in time gives your investment value or current balance.

17. WHAT IS A UNIT PRICE?
Unit price is a measure of the value of the fund in which your contributions are a part of. It represents the fund price as at the day your contributions is credited into your Retirement Savings Account.

1. CAN I ACCESS MY FUNDS BEFORE RETIREMENT IF I HAVE AN EMERGENCY OR A PRESSING NEED?
Your Retirement Savings Account (RSA) is designed to provide you with an income upon retirement therefore funds typically cannot be accessed until one attains the age of 50 years or upon retirement (whichever comes later).
However, RSA holder is temporarily unemployed before the retirement age (i.e. he/she is voluntarily/involuntarily disengaged, downsized, retrenched etc.) and has remained unemployed for a period of at least four (4) months without securing another employment, such an individual may apply for 25% of his/her current RSA balance.

2. CAN I ACCESS THE INTEREST ACCRUED ON MY INVESTMENT SEPARATELY?
No. Clients are not allowed to access the return on investments separately as the returns made on the RSA are added to the RSA balance which can only be accessed at retirement.

3. CAN I APPLY FOR ANOTHER 25% AFTER I HAVE PREVIOUSLY ACCESSED ONE?
No. You are only allowed to access 25% of your RSA balance once. The remaining RSA balance will be accessed at the age of 50 years or at retirement (whichever comes later).

4. CAN I TAKE ALL MY MONEY AT ONCE WHEN I RETIRE?
A retiree who is 50 years and above may only access the entirety of his savings when his consolidated Retirement Savings Account (RSA) balance is below N500,000.
However, a retiree with RSA balance in excess of N500,000, is entitled to a lump sum withdrawal from the balance in his RSA provided that the amount left after the lump sum withdrawal shall be sufficient to procure a programmed fund withdrawal or annuity. Please note that both modes of withdrawal are subject to approval by the National Pension Commission before payment is made.

5. CAN I USE MY RETIREMENT SAVINGS ACCOUNT BALANCE AS COLLATERAL FOR A MORTGAGE SCHEME?
Following the enactment of the Pension Reform Act (PRA) 2014, Section 89 (2) of the Act provides that a Pension Fund Administrator (PFA) may subject to guidelines issued by the National Pension commission apply a percentage of the pension assets in a Retirement Savings Account (RSA) towards the payment of equity contribution for a residential mortgage by a RSA holder.
We however await the issuance of guidelines for implementation from the Commission.

6. HOW CAN I ACCESS MY FUNDS WHEN I RETIRE?
Kindly contact us through any of the channels listed below to notify us of your retirement/disengagement. Upon receipt of your notification, we will advise you as to what mode of payment is available to you and the necessary documents to submit to enable you make any withdrawal from your account:

7. I JUST RETIRED FROM ACTIVE SERVICE AND WOULD LIKE TO WITHDRAW FROM MY RSA, WHAT WITHDRAWAL OPTIONS DO I HAVE?
Upon retirement, you can access your Retirement Savings Account (RSA) balance in the following ways:
I. A one-off lump sum payment from your RSA, provided that the balance in your account shall be sufficient to procure programmed monthly payments or annuity.
II. Programmed monthly or quarterly withdrawals calculated on the basis of an expected life span
III. Annuity purchased from a life insurance company licensed by the National Insurance Commission with monthly or quarterly payments; and
IV. Where the balance in your RSA is less than or equal to N500,000.00 the total balance in the RSA can be withdrawn enbloc i.e at once

1. What is AVC?
AVC stands for “Additional Voluntary Contribution”.

2. What are the benefits of AVC?
Additional Voluntary Contributions are used to augment the standard pension contributions and thereby help in retirement planning. It can also be used for various financial planning and tax management purposes.

3. Is there a fixed amount that must be contributed?
No. Contributions are voluntary and dependent on the discretion of the individual.

4. Are there any fixed expected returns on investment?
There is no fixed return on investment. As with any investment product, returns fluctuate with the state of the economy. We have however maintained a consistent above average return performance within the pension industry.

5. How many times can one withdraw from his AVC account?
Funds contributed as Additional Voluntary Contributions must stay in the account for 2 years before one can make withdrawals. This is as a result of regulatory requirements. Any amount withdrawn in the period after 2 years is subject to tax deductions while funds withdrawn after 5 years are tax-free.

6. What is the maximum amount that can be withdrawn?
Half (50%) of the total amount contributed at point of withdrawal can be withdrawn every 2 years from lodgement "taxable", or every 5 years from lodgement "tax-free". Any remaining funds will be accessible at retirement.

7. Why do I need to invest in AVC?
Because AVC is a means of additional savings when you retire, particularly if your current contribution rate will not leave you with an adequate pension account balance at Retirement.

8. What are the Tax benefits of AVC?
(A.) You can save up to 15% of the Tax that is, statutorily, deducted from your monthly Gross salary. This saved cash will be returned back to your salaried account.
(B.) If you wait until 5 years after funds lodgement to withdraw cash from your AVC, your withdrawal - principal and accrued interest - will be 100% tax-free.

9. How much can I start an AVC investment with?
Any amount of your choice.

10. When can I stop my AVC Investment?
Any date of your choice.

11. How do I start an AVC Investment?
By simply sending a Standing-Order instruction to your Employer’s HR Department.

12. Will my AVC Account funds be combined into my RSA Account?
Both accounts shall run separately, but will be invested in the same mix of financial instruments. It is only at retirement that both accounts will then be combined together, and identified as your Voluntary Contribution, or VC account.

13. Can I invest in an AVC account without my Employer HR’s involvement?
No. This is not permitted by the Pension Reform Act.

1. WHAT IS MICRO PENSION PLAN?
Micro Pension Plan refers to an arrangement under the Contributory Pension Scheme (CPS) that allows the self-employed and persons working in organisations with less than three (3) employees to make financial contributions towards the provision of pension at their retirement or incapacitation.

2. WHY MICRO PENSION?
Micro Pension guarantees secured future through steady income at retirement. It reduces old age poverty and the process is easy, simple and flexible.

3. WHO CAN PARTICIPATE IN THE MICRO PENSION PLAN?
A Micro Pension prospect must:
a) Be a Nigerian, not below 18 years of age;
b) Have a legitimate source of income;
c) Belongs to trade/association/profession; and
d) May be self-employed or an employee of an organization with less than three employees with or without a formal employment contract.

4. HOW DO I REGISTER/ENROL FOR MICRO PENSION PLAN?
An eligible Micro Pension contributor can enrol/register through any Pension Fund Administrator (PFA) of his/her choice, obtain and complete the Retirement Savings Account (RSA) Opening Form either physically or electronically. A unique Personal Identification Number (PIN) would be issued to the registered contributor.

5. WHO WILL MANAGE AND KEEP CUSTODY OF FUNDS ACCUMULATED UNDER THE MICRO PENSION PLAN?
The Pension Fund Administrator (PFA) manages and invests funds accumulated under Micro Pension Plan on behalf of the contributor, while the Pension Fund Custodian (PFC) keeps the fund and assets in safe custody.

6. WHAT MEASURES HAVE BEEN PUT IN PLACE BY THE NATIONAL PENSION COMMISSION TO SAFEGUARD THE FUNDS UNDER THE MICRO PENSION PLAN?
There is effective monitoring and supervision of the Plan by the Commission through daily monitoring of the Plan asset and investment decisions made by Pension Fund Administrators to ensure that their decisions are in line with relevant laws and Investment Regulations issued by the Commission.

7. DO CONTRIBUTIONS IN THE MICRO PENSION RETIREMENT SAVINGS ACCOUNT GENERATE INCOME?
Yes. PFAs invest all pension contributions and all income from such investment activities are credited into the RSA of the contributor.

8. IS THE MICRO PENSION PLAN DIFFERENT FROM A SAVINGS ACCOUNT MAINTAINED WITH A COMMERCIAL BANK?
Yes. Micro Pension Plan is different from savings account maintained with a Commercial Bank because any savings made under the plan can only be withdrawn as monthly pension after retirement. On the other hand, savings made with Commercial Banks can be withdrawn anytime as the need arises.

9. WHAT IS THE MINIMUM AMOUNT OF CONTRIBUTION ACCEPTABLE UNDER THE MICRO PENSION PLAN?
There is no stipulated minimum amount of contribution under the Micro Pension Plan because it is dependent on the Contributor's pension aspiration and financial capacity. Thus, higher contributions will result in more money available for pension.

10. HOW OFTEN CAN ONE CONTRIBUTE UNDER THE MICRO PENSION PLAN?
Contributions can be made daily, weekly, monthly or as may be convenient to the contributor and shall be subject to reporting requirements under the Money Laundering (Prohibition) Act.
11. HOW CAN I MAKE CONTRIBUTIONS UNDER THE MICRO PENSION PLAN?
Contribution under the Micro Pension Plan can be made by cash deposit or electronic transfer through any payment platform, or other financial service agents approved by the Central Bank of Nigeria (CBN).

12. HOW DO I ACCESS THE BALANCE IN MY RSA UNDER THE MICRO PENSION PLAN?
A contributor can access the balance in his/her RSA through two means namely; Contingent withdrawal and Retirement benefit withdrawal.

13. WHAT IS CONTINGENT WITHDRAWAL?
It is the withdrawal of that portion of the RSA balance (contributions plus returns on investment) made available for withdrawal to ease financial pressures or needs of the Micro Pension contributor before his/her retirement.

14. WHAT IS RETIREMENT WITHDRAWAL?
It is the withdrawal of that portion of the RSA balance that the Micro Pension Contributor shall be eligible to access as monthly pension upon retirement in accordance with the Regulation for the Administration of Retirement and Terminal Benefits.

15. HOW DO I WITHDRAW MY CONTINGENT PORTION?
A Micro Pension Contributor can withdraw an amount from his/her contingent portion by applying to his/her Pension Fund Administrator (PFA) in a prescribed format.

16. FOR HOW LONG WILL AN INDIVIDUAL CONTRIBUTE BEFORE HE/SHE CAN ASSESS THE CONTINGENT PORTION?
A Micro Pension Contributor shall be eligible to access the contingent portion of the balance of his/her RSA three (3) months after making the initial contribution. Subsequently, he/she can make withdrawals once in a week, from the balance of the contingent portion of the RSA.

17. HOW LONG DOES IT TAKE TO RECEIVE PAYMENT FROM MY CONTINGENT CONTRIBUTION?
The Pension Fund Administrator is mandated to approve and pay the amount requested from the contingent portion within 48 hours of application for withdrawal.

18. WHAT IS THE RETIREMENT AGE OF A MICRO PENSION CONTRIBUTOR?
A Micro Pension Contributor shall retire upon attaining the age of 50 years or on health grounds. However, a Micro Pension Contributor can choose to extend his retirement age beyond 50 years.

19. HOW DO I ACCESS MY CONTRIBUTIONS AFTER RETIREMENT?
A Micro Pension contributor shall, upon retirement, access his/her retirement benefits through either Programmed Withdrawal or Life Annuity.