RSA is an acronym for Retirement Savings Account, which is an account, opened in the name of an individual who works with an organization with a minimum of three employees as mandated by the Pension Reform Act 2014. The Act mandates an employee to participate by contributing 8% of the total emolument (comprising of basic salary, housing/rent and transport allowances) into his or her RSA, while the employer is required to simultaneously remit 10% of same components into the RSA.

Funds are currently categorized into RSA and Retiree Fund. Contributions from active employees of various organizations are invested in the RSA Fund in line with the National Pension Commission’s Regulation on investment of Pension Assets. The Fund largely comprises of medium to long term investments such as FGN Bonds, State Government Bonds, Equities, Treasury Bills, Money Market Instruments, Mutual Funds and Real Estate.

The transaction types that may be consolidated into the RSA within the working life of a contributor include Mandatory Contributions, Voluntary Contributions, Accrued Rights, Nigerian Social Insurance Trust Fund (NSITF), Gratuity and any bonus earned in the work place such as Productivity Bonus where the employee chooses the option of putting it into the RSA to boost retirement funds.