By Omobola Tolu-Kusimo
When does the deduction of pension contributions of a new employee commence?
An employer is obliged to commence the deduction of pension contributions for a new employee from his first salary.
What comprises an Employee’s monthly emoluments?
The PRA 2014 defines monthly emoluments” as total monthly basic salary, housing allowance and transport allowance.
What is Annual Total Emolument (ATE)?
An employee’s Annual Total Emolument is the total sum of basic salary and allowances payable as his/her remuneration for one year, as may be provided under the salary structure or terms and conditions of his/her employment.
How does the Federal Government remits the Pension Contributions of its employees into their RSAs?
The Pension contributions of Federal Government or employees of Treasury Funded Ministries, Departments and Agencies (MDAs) are deducted at source and lodged into a Contributory Pension Account with the CBN.
The Commission computes the pension contributions and advises the CBN to credit the contributions directly to the PFCs.
However, for Federal Government employees who are already on the Integrated Payroll and Personnel Information System (IPPIS), the Office of the Accountant General of the Federation (OAGF) remits their contribution to their respective PFCs.
- How does movement from one employment to another affect Pension contribution?
Movement from one employment to another does not affect pension under the CPS. Upon change in employment, the employee is only required to give the new employer his/her existing RSA details into which payment of subsequent monthly pension contributions would continue.
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