Contributors under the Contributory Pension Scheme, CPS, must have contributed for five years (60 months) to be eligible to use their Retirement Savings Accounts, RSA, balance for acquisition of residential mortgages.
Head of Investment Department of the National Pension Commission, PenCom, Mr. Ibrahim Kangiwa, who disclosed this, noted that the requirement is also applicable to contributors under the Micro Pension Plan, MPP.
Presenting the theme paper at a seminar organised by Pension Fund Operators Association of Nigeria, PenOp, for pension journalists in Lagos, Kangiwa noted that married couples, who individually meet the eligibility criteria, are also eligible.
On authorised limit for equity contribution that qualifies a contributor, Kangiwa put the maximum allowed at 25 per cent of the RSA balance, noting that “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.
“Where 25 per cent is not sufficient for equity contribution, RSA holder may utilise Voluntary Contribution (VC) in line with the Voluntary Contribution guidelines.
“Where 25 per cent is not sufficient for equity contribution, Micro Pension (MP) contributor may utilise contingency portion in line with MP guidelines.
“Where 25 per cent is insufficient as equity contribution, RSA holder shall deposit the difference with the mortgage lender,” Kangiwa explained.
Earlier in his remarks, the President, PenOp/Managing Director, Stanbic IBTC Pension Managers, Olumide Oyetan, emphasised the need for stakeholders to work together to ensure the successful implementation the guidelines.
 to be eligible to use their....){kind=link}