Frequently Asked Questions
General FAQs
What is the National Pension Commission (PenCom)?
The National Pension Commission, often called “the Commission” is the regulatory body that oversees and ensures the effective administration of pension matters in Nigeria. It enforces compliance with the Pension Reform Act 2014.
Who is a Pension Fund Administrator (PFA)?
A Pension Fund Administrator (PFA) is a licensed organization responsible for managing and investing the retirement savings of contributors under the Contributory Pension Scheme (CPS). Citizens Pensions is a licensed and trusted PFA.
What is a Pension Fund Custodian (PFC)?
A Pension Fund Custodian (PFC) is a financial institution licensed by PenCom to hold pension funds and assets in trust. They do not manage the funds but safeguard them on behalf of employees and beneficiaries.
What is the Pension Reform Act 2014 (PRA 2014)?
The Pension Reform Act 2014 is the legal framework that established the Contributory Pension Scheme. It mandates uniform pension practices across both public and private sectors in Nigeria.
What is the Contributory Pension Scheme (CPS)?
The Contributory Pension Scheme (CPS) is a retirement savings system where both the employer and employee contribute a fixed percentage of the employee’s salary into a Retirement Savings Account (RSA) throughout the employee’s working life.
What is a Defined Benefits Scheme?
The Defined Benefits Scheme is a traditional pension system where the employer is solely responsible for paying retirees based on pre-agreed terms, usually tied to length of service and final salary. It has largely been replaced by the CPS.
What is a Defined Contributory Scheme?
This is another term for the Contributory Pension Scheme (CPS), where both the employer and employee contribute periodically to build a retirement fund for the employee.
What is a Pension Fund?
A Pension Fund is a pool of money accumulated from the pension contributions made over time. This fund is invested by PFAs to grow your retirement savings, and it’s what you’ll receive upon retirement.
Who is considered an Employer under the pension system?
An Employer is any individual, company, government body, or organization that employs one or more people and is legally obligated to remit pension contributions for those employees under the CPS.
What is an ABS (Additional Benefits Scheme)?
The Additional Benefits Scheme (ABS) is an optional scheme set up by employers to provide extra retirement benefits to their employees—beyond what is required under the CPS. Employers must be compliant with the PRA 2014 and provide group life insurance and a Portfolio Management Agreement with a PFA.
What does PMA stand for?
PMA stands for Portfolio Management Agreement. It is a formal agreement between an employer and a Pension Fund Administrator, typically in the context of an Additional Benefits Scheme (ABS).
How much will I need to contribute?
You are required to contribute a minimum of 8% of your monthly basic salary, including housing and transport allowances.
How much will my employer contribute?
Your employer is required to contribute a minimum of 10% of your monthly basic salary, including housing and transport allowances. However, the employer may choose to bear the full contribution burden, provided that the total contribution is not less than 15%.
Are pension contributions paid directly to the PFA?
No. Both the employer and employee contributions are sent directly to the Custodian, not to the PFA.
What happens to my account when I change jobs?
Your RSA is portable and remains with you for life. Simply notify your new employer of your chosen PFA, and contributions will continue into the same account.
Can I switch PFAs?
Yes, you are allowed to transfer your RSA from one PFA to another once every 12 months.
What is the difference between a Pension Fund Administrator (PFA) and a Pension Fund Custodian (PFC)?
The PFA manages and invests the pension funds, while the Custodian holds the assets and executes transactions as instructed by the PFA.
Who can I complain to if I am not satisfied?
Complaints can be submitted through Citizens Pensions’ feedback and whistleblowing channels. You can send an email to hello@citizenspensions.com
Choose Citizens Pensions
What is the RSA Transfer Window?
The RSA Transfer Window is a system that allows Retirement Savings Account (RSA) holders to move their RSA from one Pension Fund Administrator (PFA) to another through a secure platform managed by the National Pension Commission (PenCom).
How do I initiate a transfer to Citizens Pensions?
How often can I transfer my RSA?
How long does the RSA transfer process take?
Transfers are processed quarterly by PenCom. If your request is received in the first or second month of a quarter, it will be processed by the end of that quarter. Requests made in the last month of a quarter will be processed in the next. Once approved, the actual transfer is completed within 7 working days after the close of the processing quarter.
Will transferring my RSA affect my account balance?
No, the entire balance in your RSA will be transferred without any deductions. Citizens Pensions will immediately begin managing and investing your funds for optimal growth.
How will I know when my RSA transfer is successful?
You will receive a notification from Citizens Pensions confirming that the transfer has been successfully completed.
What do I need to do after a successful transfer?
Inform your employer about your new PFA, Citizens Pensions, so that subsequent monthly pension contributions are remitted correctly to your updated account.
Can a retiree on Programmed Withdrawal (PW) transfer their RSA?
Retirees on PW are also eligible to transfer their RSAs to Citizens Pensions.
What if I have a fingerprint impairment?
If you are unable to do fingerprint capture due to impairment, you can still process your RSA transfer. A proof of impairment will be submitted with your application.
What if my current PFA refuses the transfer?
Every RSA holder has the legal right to switch PFAs. If you face any resistance, please escalate by writing to the National Pension Commission (PenCom) at info@pencom.gov.ng.
Can I cancel my transfer request after initiating it?
Once an RSA transfer request is initiated, it cannot be cancelled.
Need help transferring your RSA to Citizens Pensions?
We’re here to assist! Reach out to us at:
@CitizensPension { Facebook, X, Instagram, LinkedIn, Youtube}
Pension-Backed Residential Mortgage
What’s the maximum amount I can access from my RSA for residential mortgage purposes?
You can access up to 25% of your total RSA balance at the time of application.
What if the 25% of my RSA is more than the required equity contribution?
Only the amount equivalent to the actual equity contribution will be released, even if your 25% exceeds this figure.
What if the 25% of my RSA is less than the required equity contribution?
You would need to pay the shortfall to the Mortgage Lender yourself before accessing the 25% from your RSA.
Who qualifies to access this facility?
Any RSA holder actively employed under the Contributory Pension Scheme (CPS), who has made minimum contributions (employer + employee) for 60 months, and has more than 3 years to retirement.
I registered before July 1, 2019. Am I eligible?
Yes; as long as you’ve completed the RSA Data Recapture Exercise, you’re eligible.
Are RSA holders who are currently unemployed and under 50 years eligible?
Yes; provided their RSA has received contributions for a minimum of 5 years (60 months) from the date of first contribution.
How many times can I access this mortgage facility?
It’s a one-time access only.
I’m already paying for a mortgage. Can this help offset it?
No; this support is strictly for new residential mortgage arrangements.
Can I use my RSA balance to repay my mortgage loan over time?
No; only 25% of your RSA can be used once, and strictly as an equity contribution towards a fresh mortgage.
If I access this facility, can I still apply for 25% withdrawal due to job loss?
Yes; but you’ll be required to sign a consent form with your PFA confirming which of the two you wish to pursue when the time comes.
What do I need before applying through Citizens Pensions?
You must have at least 60 months of consistent contributions and a valid offer letter from the property owner, verified by a licensed Mortgage Lender.
Can Voluntary Contributions (VC), NSITF, or pre-scheme funds be included to determine my 25%?
Yes; you may include your VC, NSITF, or pre-scheme contributions, provided you meet eligibility criteria and sign a consent form.
Are Micro Pension Contributors eligible?
Yes; if they’ve made contributions for a minimum of 60 months prior to application.
Can the contingent portion of Micro Pension be used?
Yes; if the contributor has been consistent for over 60 months and signs a consent form.
Who is not eligible?
Those with less than 3 years to retirement, existing retirees, or exempted persons under the Pension Reform Act (PRA) 2014.
Can married RSA holders apply jointly?
Yes; as long as both spouses independently meet the eligibility criteria.
What’s the role of the PFA in mortgage approval?
Your PFA comes in after you’ve secured a verified offer letter and are working with a licensed mortgage provider. Mortgage approval itself is between you and the lender.
How do I know which Mortgage Lenders are eligible?
PenCom publishes an updated list of approved Mortgage Lenders on its website every six months.
Micro Pension Plan
What is Pension?
Pension is a regular income received by a person at retirement when he/she stops working due to having reached a certain age or based on a health condition, in order to cater for his/her needs in old age.
What is the 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.
Why Micro Pension?
Micro Pension guarantees a secured future through steady income at retirement. It reduces old age poverty, and the process is easy, simple, and flexible.
Has the Micro Pension Plan been successful in other countries?
Yes, the Micro Pension Plan has been successful in countries like Ghana, Kenya, and India.
Is the mandatory Contributory Pension Scheme different from the Micro Pension Plan?
The mandatory pension and Micro Pension Plan are arrangements under the Contributory Pension Scheme (CPS). The only difference between the two is the nature of participation. Thus, the mandatory pension is obligatory for all eligible employees, and both the employer and employee contribute towards the payment of the employee’s pension at retirement. Micro Pension, on the other hand, is voluntary and solely funded by the contributor.
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) Belong to a trade/association/profession; and d) May be self-employed or an employee of an organisation with less than three employees, with or without a formal employment contract.
Can one have more than one Retirement Savings Account?
No. A contributor can only have one Retirement Savings Account (RSA) in his/her lifetime.
Can an individual in the formal sector who already has an RSA also participate in the Micro Pension Plan?
No. An individual who is contributing under the mandatory pension arrangement cannot participate in the Micro Pension Plan.
How do I register/enroll for the Micro Pension Plan?
An eligible Micro Pension contributor can enroll/register through Citizens Pensions. You can 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.
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 the Micro Pension Plan on behalf of the contributor, while the Pension Fund Custodian (PFC) keeps the funds and assets in safe custody.
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’s assets 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.
Is there a provision for the guarantee of the safety of Plan assets under the Micro Pension Plan?
Yes. The Pension Fund Custodian (PFC) has provided full guarantee of the total pension assets under its custody. Thus, any kobo lost will be refunded by the Custodian.
Do contributions in the Micro Pension Retirement Savings Account generate income?
Yes. PFAs invest all pension contributions, and all income from such investment activities is credited into the RSA of the contributor.
Would my contributions under the Micro Pension Plan be subject to any taxes?
No. Subject to Regulations issued by the Commission, all interests, dividends, profits, investments, and other income accrued to Micro Pension funds and assets are not taxable.
Can I decide which financial instruments my contributions should be invested in?
No. Investment decisions are made by the Pension Fund Administrators in line with Investment Regulations issued by the National Pension Commission.
Is the Micro Pension Plan different from a savings account maintained with a Commercial Bank?
Yes. The Micro Pension Plan is different from a 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.
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.
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.
How can I make contributions under the Micro Pension Plan?
Contributions 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).
Can a contributor use his Micro Pension Plan account as collateral for a loan?
No. The Micro Pension Plan account cannot be used as collateral for a loan.
Can a contributor access an amount from his RSA in excess of his Micro Pension Plan account balance and repay over a period?
No. A contributor cannot access an amount in excess of his/her Micro Pension Plan account balance because the Pension Reform Act 2014 prohibits such transactions.
How do I access 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.
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.
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.
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.
For how long will an individual contribute before he/she can access 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 a week from the balance of the contingent portion of the RSA.
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.
What happens if the Micro Pension contributor gets a formal employment?
The Micro Pension contributor who secures formal employment shall notify his/her PFA for conversion into the mandatory pension. The Micro Pension contributor shall also retain his/her existing RSA to be used for the mandatory pension.
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/her retirement age beyond 50 years.
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.
What is Programmed Withdrawal?
Programmed Withdrawal is a mode of benefit withdrawal by which a Micro Pension retiree receives pension through his Pension Fund Administrator (PFA) on a periodic basis, i.e., monthly or quarterly.
What is Annuity?
Annuity is a method of receiving pension by a retiree through a contract purchased from a Life Insurance Company. It provides a guaranteed periodic income (pension) to a retiree throughout his/her life after retirement.
What is the length of the Annuity Guaranteed Period?
The Retiree Life Annuity is guaranteed for 10 years. Thus, if a retiree dies before 10 years, the balance of the equivalent monthly pension to complete the remaining period up to 10 years would be paid to his/her beneficiaries. Where the retiree dies after the guaranteed ten-year period, nothing would be paid to the beneficiaries.
What happens to the balance in the Micro Pension contributor's RSA in the event of death?
The balance in a Micro Pension contributor’s RSA shall, in the event of death, be paid to the legal heirs of the deceased/contributor as may be appointed by a Will or Letter of Administration granted by a Probate Registry or as may be directed by a court of competent jurisdiction in the state of residence of the deceased contributor, as the case may be.
Can I participate in the Micro Pension Plan upon retirement from my job in the formal sector?
No. The Micro Pension Plan only allows for conversion from Micro Pension Plan to the Mandatory Contributory Pension.
Payment Of Retirement Benefits Under the Contributory Pension Scheme (Cps)
What is the Minimum Period Required by an Employee to Qualify for Pension Under the New Scheme?
There is no qualifying period for pension. If an employee works for an employer, his pension contribution will be paid by the employer into the employee’s RSA for the period of his service. However, access to the contributions must be in line with the provisions of the PRA 2014.
Will Gratuity be Paid Under the CPS?
Upon retirement, an employee can withdraw a lump sum from the balance standing to the credit of his/her RSA, provided the balance after the withdrawal could provide an annuity or fund monthly payments through programmed withdrawals. However, an employer may choose to pay any other severance benefits (by whatever name called) over and above the retirement benefits payable to the employee under the PRA 2014.
What is Retirement Bond?
The Retirement Bond represents the accrued retirement benefits for the past services rendered by employees of the Treasury Funded Ministries, Departments, and Agencies of the FGN, State, and Local Governments before the commencement of the CPS. The amount is calculated by qualified actuaries and is transferred to the RSA upon retirement.
Are Pension Benefits for Services Rendered Under the Old Scheme Going to be Paid to the Contributors Under the CPS?
Every employee is entitled to pension and gratuity that may have accrued under the old pension scheme. The total accrued benefit is calculated and provisions made by employers to credit the amounts determined to the respective RSAs of the beneficiaries.
What are the Components of the Final RSA Balance of a Treasury-Funded FGN Employee?
The RSA balances are made up of two components, namely, accrued rights and accumulated monthly pension contributions, including the investment income. The accrued rights include gratuity and pension that an employee is entitled to for the past services rendered to the FGN, from the date of his/her first appointment to 30 June 2004.
What is the Retirement Age Under the Pension Reform Act 2014?
The Act did not stipulate any retirement age. Retirement age depends on each employee’s terms and conditions of employment.
What Happens When an Employee Who Has Been Contributing Under CPS Dies Before His Retirement?
Where an employee who has been contributing under the CPS dies before his/her retirement, his benefits shall be paid to his beneficiary as he/she provided under a will or to the next-of-kin. In the absence of such designation, the benefit shall be paid to any person appointed by the Probate Registry as the administrator of the estate of the deceased.
What Happens to an Employee Who Retired Under the CPS Due to Physical or Mental Incapacity, but Subsequently Had His Case Reviewed and Recertified Fit and Proper for Employment?
Such an employee may re-enter the Scheme upon securing new employment. The new employer would commence remittance of the employee’s pension contributions into his original RSA.
What Happens When an FGN Employee Receives Promotion After Enrolment Exercise?
Where a FGN employee is promoted after enrolling for the payment of accrued pension rights with the Commission, a copy of the promotion letter indicating grade level, step, and effective date should be forwarded to the Commission along with a copy of his/her registration slip obtained during the enrolment exercise. These will be used to compute and pay any difference in the accrued benefits that may occur as a result of the promotion.
What Do I Do if I Was Unavailable and Missed the Annual Enrolment Exercise?
Any FGN employee who misses the annual enrolment can come to the Commission for the in-house enrolment, which normally commences two (2) months after the conclusion of the annual enrolment and ends two (2) months before the next annual exercise.
When Can I Have Access to the Money in My RSA?
A holder of an RSA shall have access to his/her RSA upon retirement based on conditions of service or upon attaining the age of 50 years (whichever is later), or if medically incapacitated. Where an employee voluntarily retires, disengages, or is disengaged, he/she can have access to 25% of his/her RSA, provided that such employee is unable to secure another employment after four (4) months of such retirement.
What Happens to the Balance in the RSA After Any Initial Lump Sum Withdrawal?
The balance in the RSA will be applied towards the payment of monthly pension to the retiree on programmed withdrawal. In the case of annuity, it is applied to procure a monthly annuity for life from a Life Insurance Company.
Can I Make a Lump Sum Withdrawal of More Than 25% of My RSA Balance at Retirement?
This can be allowed, provided the amount left in the RSA after that lump-sum withdrawal shall be sufficient to fund a Programmed Withdrawal or annuity of not less than 50% of the retiree’s annual remuneration as at the date of retirement.
What is Programmed Withdrawal?
This is a mode of withdrawal by which a retiree receives pension through his Pension Fund Administrator (PFA) on a monthly or quarterly basis over an estimated lifespan. The RSA balance is reinvested by the PFA to generate more income/funds for the retiree. When a retiree dies, any balance in the RSA will be paid to the duly nominated beneficiaries.
What is Annuity?
An annuity is a stream of income purchased from a Life Insurance Company. It provides a guaranteed periodic income (pension) to a retiree throughout his/her life after retirement. Under the CPS, annuity is guaranteed for ten years. If the retiree dies within ten years of retirement, the monthly annuity/pension will be paid to his beneficiaries for the remaining years up to ten years. For example, if a retiree who chose annuity dies six years after retirement, his monthly annuity/pension will be paid to his beneficiaries for the next four years. The retiree can buy an annuity contract by paying a portion of his retirement benefits as a premium to an insurance company, which in turn provides the monthly/quarterly payments (annuity), subject to the Regulations jointly issued by the National Pension Commission and National Insurance Commission.
What Happens to a Retiree with an Insufficient Balance in His RSA?
A retiree who has contributed for a specified number of years shall be entitled to a guaranteed minimum pension, which will be determined by the Commission from time to time, under the Guidelines for Minimum Pension Guarantee (MPG).
How Would a Person Who Retires Before the Age of 50 Years and in Accordance with the Terms and Conditions of His Employment Access His RSA?
As stipulated in Section 7(2) of the PRA 2014, this category of employees is entitled to withdraw not more than 25% of their RSA balances as at the time of retirement, provided they have been out of job for four months and have not secured another employment.
What are the Reasons for Monthly Pension and Lump Sum to Differ Between Colleagues Who Retired at the Same Time and on the Same Salary Grade?
Monthly pension and lump sum may differ due to the following reasons:
- Their grades, ranks, and salary steps may differ as at June 2004;
- The magnitude of their contributions to RSA may vary during their pension accumulation phases;
- Their respective PFAs may operate different strategies for investment of pension funds and generate different investment incomes; and
- They may, at retirement, withdraw different amounts as lump sum, giving higher monthly pension to the one who withdrew a lower amount as lump sum due to a higher RSA balance after the lump sum withdrawal.
What Constitutes the Consolidated Benefits of a Deceased Employee Who Died in Active Service?
The consolidated benefits of a deceased employee include the proceeds of his/her accumulated contributions plus any income that accrued from investing the contributions, benefits from the life insurance policy, and accrued pension benefits.
What is the Procedure for Accessing the RSA of a Deceased Employee?
Upon the death of an employee, the employer/Next of Kin (NoK) or representative of the deceased shall notify the PFA, who in turn shall inform the Commission with supporting documents. The deceased’s consolidated benefits are thereafter paid in bulk to the Executors of his estate or to any person appointed by the Probate Registry as the Administrator of his estate, to enable them to apply the same in favour of his beneficiaries. The employer should also process the proceeds of the life insurance policy and ensure payment by the insurance company to the beneficiary.
How Would the Consolidated Benefits of an Employee Who Died Prior to Opening an RSA be Processed in Favour of His Beneficiaries?
For a deceased person who did not open an RSA before his death, the NoK should open a Death Benefit Account (DBA) with any PFA of his/her choice through which the deceased’s entitlements and proceeds of the Life Insurance Policy would be paid.
What Happens to the Benefits of a Missing Employee?
Section 9 of the PRA 2014 stipulates that where a missing employee is not found within a period of one year from the date he was declared missing, and a Board of Inquiry set up by the Commission concludes that it is reasonable to presume that the employee is dead, the consolidated benefits of such missing employee would be paid by the PFA in bulk to the Executors or the Administrator of the Estate of the deceased person in accordance with Section 8 of the PRA 2014.
What is the Quantum of an Employee’s Benefits Under the Life Insurance Policy?
Section 4(5) of the PRA 2014 makes it mandatory for every employer to maintain a life insurance policy in favour of its employees for at least three times the annual total emolument of the employees. The employer is still obligated to pay the equivalent amount of the Group Life Insurance to the deceased’s beneficiaries in the event that it does not have a current policy with an insurance company.
Who Pays the Premium for a Group Life Insurance Policy?
The premium for the Group Life Insurance Policy is to be paid by the employer. The employee does not bear any cost to this effect.
Are Employees Covered for Life in the Group Life Insurance Under PRA 2014?
No. Employees are covered for the period in which they are in active service of the employer. Hence, the policy does not cover the employee after disengagement/retirement from the service of the employer.
Who Provides the Group Life Insurance for the Employees of Treasury-Funded Federal Government Employees?
The Federal Government provides Group Life Insurance cover for her employees through the coordination of the Office of the Head of Service of the Federation (OHOSF).
Can an Employer Pay for More Than Three Times the Total Annual Emolument of the Employee?
Yes. The guideline issued by the Commission and NAICOM provides that any employer that has an existing policy whose terms are better than three times the Annual Total Emolument (ATE) should maintain such policy. Therefore, the employer may provide life insurance cover over and above the minimum required.
Can I Choose Programmed Withdrawal and Later Change to Annuity When I Have Already Retired?
It is possible for a retiree to change to Life Annuity after collecting his retirement benefits through Programmed Withdrawal for some time. At that time, the remaining balance in the RSA will be utilized as a premium to purchase the Life Annuity from an insurance company, which will be paying him monthly pension/annuity for life.
Can I Choose Annuity and Later Change to Programmed Withdrawal When I Have Already Retired?
At the moment, this is not allowed. Once a retiree has chosen to collect his benefits by annuity, he is not allowed to change back to Programmed Withdrawal. The retiree can only change his annuity contract from one insurance company to another.
