AVC – Pension Funds Administrators

Get more from your pension account through PAL Pensions AVC.

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What's PAL Pensions AVC

Additional Voluntary Contributions (AVCs) are extra funds you can add to your statutory pension contributions. It is relevant to note that by law, these extra savings can only be deducted from your salary. It can be a tax-efficient method of boosting your retirement savings, as these contributions are deducted before tax is applied.

Access to 50% of savings that have been retained for at least, 2 years

With AVC, you receive better returns than your regular saving account (expected returns of 12%/annum versus 2% per annum on savings account) and tax benefits on on interest income earned.

Higher returns than bank savings accounts.

With AVC, you can withdraw half of your savings in two years.

Relatively low investment risk

PAL’s Investment Philosophy is premised on providing all pensionable employees in Nigeria with secure and adequate funds post-retirement, to enable them enjoy a decent standard of living.

Frequently Asked Questions

See some here

Additional Voluntary Contributions (AVCs) are extra funds you can add to your statutory pension contributions. It is relevant to note that by law, these extra savings can only be deducted from your salary. It can be a tax-efficient method of boosting your retirement savings as these contributions are deducted before tax is applied.

The following categories of persons are eligible to make Additional Voluntary Contributions:

All current RSA holders
Employees of organizations with approved existing pension schemes e.g CPFAs
Any person who retired, disengaged or whose employment was terminated and is currently receiving pension under the contributory pension scheme, but secured another employment on contract basis.
Any person who is appointed by the President of the Federal Republic of Nigeria, State Government, and elected officers to hold office for a stipulated tenor and who is not a career civil servant.
Any foreigner residing and working in formal sector in Nigeria.

Here are some major benefits of AVC:

Boosts RSA balance: Additional Voluntary Contribution is one way to boost your savings for a more comfortable life at retirement.
Flexibility: Voluntary contribution can be any amount of your choice, so long as it is not more than one-third of your monthly salary. You decide on the frequency of the contribution, either monthly or quarterly.
Ease: The deductions are made together with your statutory contributions and remitted on your behalf by your employer.
Tax savings: Voluntary contributions are tax exempt. It is deducted before tax
Financial discipline: Voluntary contributions are deducted at source, hence the funds are not available for you to spend and this would help you better manage your finances.
VCs are invested in a very diversified portfolio which would help to lower investment risks.
At retirement, if your contributions have been in the account for up to five years, you can choose to withdraw all of it with interest OR choose to use it to augment your balance for Programmed withdrawal or purchase of annuity.

AVC is deducted from your salary before your tax is computed. All you need to do is to notify your employer via email about your desire to make additional voluntary contributions, stating the amount and frequency (you can only make AVCs once a month). You can also complete the AVC form on our website and submit a copy to your employer and PAL.

You can only contribute up to 1/3 of your monthly salary as AVC. Also, any single transaction of more than N5million naira must be reported to EFCC by the PFAs/PFCs.

With AVC, you receive better returns than your regular savings account (expected return of 12%/annum versus 2%/annum on savings account) and tax benefits on interest income earned.
Unlike investment instruments such as shares, AVC investments are less risky/volatile and are not subject to tax. The return on investment is attractive and competitive so, you can easily plan for the future

AVCs like the statutory pension contributions, are invested in diversified portfolio of assets; in line with PenCom’s regulation on investment of pension assets.

To withdraw from your AVC, complete and submit our benefit withdrawal form, your bank statement and letter requesting for your funds. Your application will be processed, and benefits paid upon receipt of approval from the National Pension Commission.

Contributors in active service can only withdraw 50% of their VC after the contributions have been retained for a period of 2 years in their RSA. Subsequent withdrawals will be on the incremental contributions remitted after last withdrawal date.

The 50% balance of VC in the account will form part of the RSA balance which will either be accessed as Lump Sum and programmed withdrawal or used to purchase an annuity upon retirement.

Your voluntary contributions are retained in your RSA to be accessed only at the expiration or termination of your contract. Where the withdrawal is made in less than 5 years from the date the voluntary contribution was made, tax is applied, and the deduction is based on both income and principal.

Frequently Asked Questions

See some here

Simply chat with us or notify us via email at info@192.168.21.113

Alternatively, you can update this detail yourself by downloading and installing the PAL Pensions mobile app.

You can also access the client login page on this website to carry out the change

You can contact us by sending an email to info@192.168.21.113 or check the contact us page on our website for all our branches nationwide

The SMS alert is sent to notify clients only when contributions have been received from their employer and their RSA’s have been credited. If you have changed your phone number, we advise you inform us so we can update your profile on our database in order for you to continue receiving the SMS alert.

To change any of such information you are required to fill a Change of Personal Information Form indicating the information you want to change/update. The form is to be signed, dated and thumb printed authorizing the PFA to effect the changes on the database. For a change of name to be effected, you need to provide a change of name document (Sworn Affidavit, Newspaper publication or Marriage Certificate).

With a ‘Will’ the process of administering your funds to the beneficiary is made easy as it is a binding legal document by law. A ‘Will’ eases the stress of the beneficiary having to obtain a letter of administration from the court.

Your lump sum and monthly pension is a function of 3 things: your RSA balance, age at retirement and last salary. You are however guaranteed to receive a minimum of twenty five percent (25%) of your RSA balance as lump sum payment. This is calculated using a template provided by PENCOM.

Your RSA is credited with contributions as received from your employer. If you are a Federal Government employee, the National Pension Commission (PENCOM) remits on your behalf and has advised that such complaints be directed to them for verification and correction through Pension Desk Officer (PDO). Private sector employees should revert to the company HR/Accounts department for verification of contributions.

The PRA 2014 makes provision for RSA holders who have either been redundant; their appointment terminated or have been disengaged by their employer to have access to 25% of the balance in their RSA provided they have been without job for at least four months. The following documents will be required:

Letter of Redundancy/Termination/Disengagement issued by your employer
Letter requesting for 25% of your Retirement Saving Account Balance
Four passport photographs
Proof of age (birth certificate OR sworn declaration of age)
Bank account details (for confirmation of account number)
Confirmation by employer that the person’s pension contributions have been remitted
A valid means of identification

The National Pension Commission has provided guidelines on Cross Border Arrangement – CBA. This arrangement allows for Nigerians living abroad amongst others to participate in the Nigerian Pension Scheme. Under the CBA, Nigerians living abroad can make contributions into their Retirement Savings Accounts (RSA) by making payments into a domiciliary accounts opened by our Pension Fund Custodian. Once the lodgement is received, we will credit your RSA with the equivalent Naira value and invest your contributions accordingly.

Your preferred PFA is required to recapture your pension data. Upon validation of your pension data, the PFA will forward a transfer request to the National Pension Commission for approval. The Commission will reconcile, determine your actual contributions and grant approval for the transfer to your preferred PFA

Please use your PIN as username and click on the ”forgot link password” to enable a password reset. Ensure you have an email address registered with us prior to this.

The easiest way is to access the client login page here https://palrsa.palpensions.com/Account/Login/

The recapture process can be completed seamlessly from the comfort of your home, through the platform

Kindly inform your employer on the amount you would like to contribute as AVC. Your statutory pension and AVC remittance should be separated on the remittance schedule to be sent by your employer.

To ensure remittance of your pension contributions, please furnish your employer with your registration details i.e. your PIN and our bank details thus:

Bank: UBA

Account number: 1005385521

Account name: UBA PENSIONS CUSTODIAN/PENSIONS ALLIANCE-CONTRIBUTION ACCOUNT

Download the PAL mobile app for easy navigation

Make quick and seamless retirement plans on the PALPensions App today. Download the app today from the Google play store or iOS App store to enjoy easy access.