By Sola Alabadan
Leadway Pensure, a Pension Fund Administrator (PFA), says it is committed to providing financial support for its Retirement Savings Account (RSA) holders desirous of accessing the fund to become house owners before retirement.
In line with Section 89(2) of the Pension Reform Act 2014, the contributors under the Contributory Pension Scheme (CPS) who have contributed for five years (60 months) cumulative of employer and employee’s mandatory contributions can use 25 percent of their RSA balance for acquisition of residential mortgages.
Mr. Kelechi Nwabalogu,Team Lead, Customer Relationship Management Department of Leadway Pensure, stated this at a training organised by Leadway Group for members of the Nigerian Association of Insurance And Pension Editors (NAIPE) in Lagos recently.
He noted that RSA holders must, however, meet the conditions and guidelines stipulated by PenCom to access the fund.
“Some of the conditions are that the RSA of the applicant shall have both employer and employee’s mandatory contributions for a cumulative minimum period of 60 months.
“An offer letter for the property duly signed by the property owner and verified by the mortgage lender.
“The application for equity contribution for residential mortgage shall be in person and not by proxy, among others,” he said.
PenCom had in September 2022, approved a guidelines for RSA holders to access a residential mortgage through their RSAs, in line with the Pension Act.
The commission’s guideline stated that RSA holders can use 25 per cent of their RSA balance towards the payment of equity for a residential mortgage.
He also said that the PFA has paid over N175 billion in retirement and terminal benefits to over 85,000 of its customers since the inception of the Contributory Pension Scheme (CPS) in 2004.
Nwabalogu said that Leadway Pensure has shareholders’ funds in excess of N8.6 billion, even though licensed PFAs are required to have N5 billion.
According to him, Leadway Pensure was formed by a consortium of three finance service organisations namely ; Leadway Holdings Ltd., MBC Securities and Prestige Assurance Plc.
He noted that in terms of quality assurance, PenCom had adjudged Leadway Pensure as one of the best in the industry, which signifies its quality service delivery and best in class corporate governance.
