The Pension Reform Act 2014 is the most recent legislation of the Federal Government aimed at addressing the problems associated with our old pension system. It established a uniform pension system for both the public and private sectors. Similarly, for the first time in the history of our country, a single authority - (the National Pension Commission or PenCom) was established to regulate all pension matters in the country.
The PRA 2014 made pension deduction a first line charge on the Consolidated Fund of the Federation. Thus, it is mandatory for all Government Entities to ensure that all employees in the Federal Government and the Federal Capital Territory have a Retirement Savings Account (RSA).
All Federal employees have the responsibility to ensure that their monthly RSA contributions of 10% by the employer and 8% by employee (making a total for 18%) are duly deducted and remitted to a PFA of choice on a monthly basis since it will go a long way to improve their personal comfort and security in retirement and old age.