An integral feature of the Contributory Pension Scheme (CPS) is the provision of social security through benefits payments during temporary job loss. This innovative measure mitigates the impact of unexpected unemployment on Retirement Savings Account (RSA) holders and helps alleviate the broader effects on the Nigerian economy. This social security for CPS participants underscores the scheme’s commitment to supporting individuals during challenging economic periods, promoting stability, and fostering resilience within the workforce.
The Pension Reform Act 2014 (PRA 2014) allows pension contributors to access 25 percent of the balance in their RSA due to a temporary job loss. Section 7 (2) of the PRA 2014 states that “where an employee voluntarily retires, disengages or is disengaged from employment as provided for under section 16 (2) and (5) of the PRA 2014, the employee may, with the approval of the Commission, withdraw an amount of money not exceeding 25% of the total amount credited to his RSA, provided that such withdrawals shall only be made after 4 months of such retirement or cessation of employment and the employee does not secure another employment.”
