Pension

RSA Fund II gulps N3.85tn pension assets

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Chuks Udo Okonta

About N3.85 trillion of the total pension assets N8.74 trillion as at January 2019, has been invested from Retirement Saving Account (RSA) Fund II which is a default fund for contributors that are within the age bracket of 49 years and below.

According to the National Pension Commission (PenCom) N2.08 trillion was invested from RSA Fund III; N704.17 billion from RSA Fund IV and N9.57 from RSA Fund I, while the total RSA Funds stood at N6.86 trillion.

Highlights of the various fund categories according to PenCom are as follows:

Fund 1:

Members of Fund 1 are 49 years and below.
Existing contributors within the age bracket of 49 years and below shall have the option to move to Fund 1
Such existing contributors shall buy into the fund at a nominal unit price of N1.00 on the 1st day of effective implementation of the Multi-fund structure.
New entrants subsequent to take off date shall buy into the fund at the prevailing value of accounting unit of Fund 1
Members of Fund I (49 years and below) shall not be allowed to move to Fund III.
Fund 2:

This shall be the current RSA ‘Active’ fund and shall be known as ‘Fund II’.
This will be the default fund for contributors that are within the age bracket of 49 years and below.
Fund II shall continue to maintain the value of an accounting unit (VAU) of the RSA ‘Active’ fund based on NAV.
Members of Fund II (49 years and below) shall not be allowed to move to Fund III, but shall only be allowed to move to Fund I
Fund 3:

Members of Fund III are 50 years and above.
This will be the default fund for contributors that are within the age bracket of 50 years and above.
Initial entrants into Fund III shall buy into the fund at a nominal unit price of N1.00 on the 1st day of effective implementation of the Multi-fund structure.
New entrants, subsequent to take off date, shall buy into the fund at the prevailing Value of accounting Unit of the Fund.
Members of Fund III (50 years and above) shall not be allowed to move to Fund I.
Fund 4:

This shall be the current Retiree fund and shall be known as ‘Fund IV.
Members of Fund IV are not allowed to move out of the Fund.
Active Contributors (members of fund I, II, III) are not eligible to buy into Fund IV.

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