Pension Scheme

The Contributory Pension Scheme
is an arrangement where both
the employer and the employee
contribute towards the payment of
the employee’s pension at retirement.

It is fully funded through the monthly pension contributions that are remitted into an employee’s Retirement Savings Account (RSA) managed by a Pension Fund Administrator (PFA)

The main objective of the CPS is to ensure
that every that worked in either the
Public or Private Sectors in Nigeria receives
his/her retirement benefits as when due.

The CPS covers all employees in the Public Service of the Federation, Public Service of the Federal Capital Territory, States, and Local Governments, the Private Sector.


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  • Pension contributions are paid directly to the PFC by the employer to be held on the order of the PFA. The PFC notifies the PFA immediately upon receipt of the contributions.
  • An employer may agree on payment of additional benefits to the employee upon retirement or elect to bear the full responsibility of the scheme provided the total amount contributed by the employer should not be less than 18% of the employee’s monthly emoluments.
  • Yes, the scheme allows employees to, in addition to the 18% employee and employer contributions make voluntary contributions into their RSAs.