Summary
On 25 October 2018, the National Pension Commission (PENCOM)
published Guidelines on Voluntary Contribution (VC) under the
Contributory Pension Scheme (Guidelines). The Guidelines provides
uniform set of rules for the operation of VCs. Specifically, the
Guidelines provides the procedure for making VCs and the
eligibility criteria for participating in the VC Scheme. Although
the Guidelines do not provide any commencement date, it states that
it shall apply to all VCs, including those VCs made prior to the
issuance of the Guidelines.
Details
The Pension Reform Act (PRA) mandates employees within the
public and private sector to participate in a Contributory Pension
Scheme (CPS). Section 4(7) of the Pension Reform Act 2014 (PRA or
the Act) allows employees contribute voluntarily to their
Retirement Savings Account (RSA), in addition to mandatory
contributions under the CPS. The Section also allows employees, who
are otherwise exempted from participating in
