PRIVATE SECTOR PENSIONS (OLD)

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Sweethoney
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PostSweethoney on 2nd November 2012, 4:12 pm

The National provident fund (NPF) was established in 2961 by the Act of parliament. Though, it lasted for thirty three (33) years between 1961-1994. it was a contributory scheme or a compulsory savings scheme without any insurance cover. The scheme covers private sectors employing ten and above of all establishments. Though, if did exempt some categories of workers such as the casual workers and tributes in any mine. The purpose of this scheme was to provide a minimum threshold of relief to employed persons who either retired from service, died or ill, the unemployed or aged etc.

The Nigerian social insurance trust fund (NSITF) was later been established by Decree No. of 1993 to replace the defunct National provident fund (NPF), NSITF’s main function is to adopt a more comprehensive social security scheme for Nigerian private sector employees. Underlie scheme, Nigerian private sector employees were been expected to contribute 2.5 percent of their respective gross monthly income while the employer were been expected to contribute 5 percent of gross monthly emolume. As at the third quarter of 1995, a total of 25,318 contributors had been registered while estimatal savings with NSITF were N 1,117 . 5million in 1997.after the passage of the pension Refirm Act by June 2004, the transition continued and gave birth to Trust fund pension Administrator to enable them administer the new contributory pension scheme you can see section 42 subsection 1-7 of the PRA in this book for more detail.
To understand more on pencom achievement on the NSITF of section 42 subsection 1-7 go to pencom for December 31, 2010.

MANDATE OF NIGERIA SOCIAL INSURANCE TRUST FUND (NSITF).
Section 16 of the NSITF Act, No. 93 of 1993 mandate the fund to provide the following benefits:

a. Retirement pension: This refers to payments made to an employee at his her retirement after active service.

b. Retirement Grant: You can apply to receive your retirement, when you are of 60 years and above and have retired with at least 12 months but less than 120 months (i.e. 10 years) periods of combined contribution payment.


c. Survivors Grant: When payment is made to a registered dependent of a deceased member who was not entitled to invalidity or retirement pension, but has made at least 12 moths of combined contribution, payments.

d. Death Grant: This involves the lump sum payment to the Next – of – kin (NOK) on the death of a member receiving invalidity or retirement pension.


e. Invalidity Benefit: You will be entitled to this benefit if you are permanently in capable of working but have made at least 36 monthly combined contribution payments in total and 12 months payments within the preceding 36 months to claiming his benefit.

f. Invalidity Grant: You will be due for this benefit if you are permanently in capable of working and have made at least 12 months combined contribution payment.


g. Such other benefit as may be approved from time to time by the board.


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