PenCom approves foreign currency pension contributions for Nigerians abroad

The National Pension Commission (PenCom) has approved newrules allowing Nigerians abroad and foreign workers in Nigeria to contribute topension funds in foreign currency. The new regulations apply to Nigerians living and workingabroad and employees of foreign companies and international organisations inNigeria not covered by the Pension Reform Act 2014. According to the regulation, foreign currency pensioncontributors will receive their retirement benefits in dollars, either throughen bloc payment or programmed withdrawal. The commission said Nigerians and foreigners working inNigeria for foreign companies and international organisations can access theirpensions upon reaching the age of 50 or on health grounds. The regulation said the contributors will be required toprovide duly completed withdrawal forms, valid means of identification such asan international passport, NIN slip, driver’s licence or voter’s card, and anyother documentation as specified by the commission. PenCom also said contributors who prefer to receive theirbenefits in naira will be allowed to do so. For deceased or missing persons, the agency said the pensionfund administrator will pay the benefits in line with the requirements underthe revised regulation for the administration of retirement and terminalbenefits. The commission also introduced new withdrawal conditions forforeign currency pension contributors under the revised guidelines. According to the policy, withdrawals can only be made sixmonths after the initial contribution and “not more than twice in a year beforeretirement”. PenCom added that contributors must also “give notice of 2working days” before making such withdrawals. The agency further stated that a foreign pension contributorwho joined the scheme under these guidelines after the age of 50 years shall beeligible to access their full contributions as they wish, provided the PFA wasnotified one month before such withdrawal.

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