Due to increased global work mobility, many Nigerians are now working abroad. In the same vein, Nigeria attracts expatriates from various parts of the world. In some cases, Nigerians who move abroad for work are already enrolled in the Contributory Pension Scheme (CPS) and may wish to continue saving in Nigeria for their retirement.
Similarly, foreigners working in Nigeria may be members of various pension plans in their home countries and desire to participate in the Contributory Pension Scheme (CPS) while working in Nigeria. Recognising these needs, the National Pension Commission (PenCom) issued Guidelines for Cross-Border Arrangements Under the Pension Reform Act (PRA) to facilitate the participation of the above categories of workers in the CPS.
The Pension Reform Act (PRA) 2014 primarily applies to Nigerian citizens working in Nigeria. However, Nigerians working abroad are allowed and encouraged to participate in the Scheme voluntarily. Also, while the Scheme is not mandatory for expatriate employees in Nigeria, such employees can elect to participate by making voluntary contributions under the CPS.
