PenCom Releases Guidelines On Voluntary Contribution Under The Contributory Pension Scheme

The National Pension Commission (PenCom) recently released guidelines (the Guidelines) to provide clarity on voluntary contributions (VCs) under the Contributory Pension Scheme (CPS). The Guidelines are coming on the heels of PenCom's circular of 16 November 2017 to all Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) on "Withdrawals from voluntary contributions".

One of the key objectives of the Guidelines is to establish a uniform set of rules for the operation of VCs as well as define eligibility criteria for participation. The Guidelines apply to all voluntary contributions and shall also apply retrospectively. Key highlights of the Guidelines are provided below: