The following actions are to be undertaken by a prospective retiree in order to facilitate the process of payment of his/her retirement benefits:
A. Actions to be Taken by a Potential Retiree
Within 6 months to retirement, the RSA holder shall submit the following documents to the PFA:
The official notice/acceptance of retirement from his/her employer;
Current pay slip or any other evidence of total annual remuneration/Grade level and step; and
The evidence of accrued pension rights (if any) or acknowledgement of indebtedness (for employees in the Treasury Funded organisations).
Actions to be Taken by a Retiree (a) Obtain data confirmation letter from PFA; (b) Obtain and complete standard notification from PFA; (c) Seek financial advice from both PFA and RLA provider; (d) Choose mode of pension payment, i.e. Programmed Withdrawal (PW) or Retiree Life annuity (RLA)
Retirement benefits are entitlements, rights and privileges that accrue to a worker/employee upon leaving the services of an employer for reason of having worked or provided service to the employer. Such benefits could be paid in either lump-sum (gratuity), periodically (pension) or a combination of both. Such arrangements could include multiple benefits and severance arrangements.
For many organizations, gratuity is agreed upon through collective bargaining between the workers and employers, to be paid in accordance with the terms and conditions agreed.
The promulgation of the Pension Reform Act (PRA ) did not stop the payment of gratuity, or any form of severance benefits that existed prior to June 2004. The PRA recognizes the need for employers to honor their agreement with employees and also gives place for collective bargaining for enhanced retirement entitlements.
Going by the objective of the pension reform that every worker gets paid as and when due, it is PenCom’s responsibility to ensure that such agreement between employers and their employees are adhered to and in such circumstance ensure that funds are set aside by employers and secured by PFAs/PFCs, for the benefit of the employees.
