Calculating pension contribution to PFAs in Nigeria is easy below is the tool to help calculate Pension Contribution In Nigeria to help salary earners calculate if their pension contribution is correct.
How do you calculate your pension?
A pension is a fund into which a sum of money usually a contribution added during an employee’s employment years both from the employer and the employee.
What percentage of salary is pension in Nigeria? The percentage is a contribution from the employee is 8% and the employer 10%. The formula for the calculation is (Basic Salary + Housing Allowance +Transport Allowance) * 8% while for the employer (Basic Salary + Housing Allowance +Transport Allowance) * 10%.
Once the pension is calculated especially for yourself or all staff, then is remitted to the PFA (Pension Fund Administrator).
List of Pension Funds Administrator in Nigeria
- Stanbic IBTC Pension Manager
- Crusader Pensions Limited
- ARM Pension Manager
- AXA Mansard Pension Limited
- Fidelity Pension Manager
- Pal Pension Manager
- Sigma Pension Manager
- Fug Pension Limited
- Leadway Pension Manager
- Trust Fund Pension Manager
The Pension Funds Administrator then transfers the funds to the Pension Fund Custodians (PFC) which are companies licensed by the National Pension Commission to keep pension money and assets in the RSA (retirement Saving Accounts) on trust for the employee on behalf of the PFA (Pension Fund Administrator)
List of Pension Funds Custodians
- Diamond Pension Fund Custodian Limited
- First Pension Custodian Nigeria limited
- UBA Pensions Custodian Limited
- Zenith Pensions Custodian Limited
What is the difference between PFA and PFC?
The difference between the PFA and the PFC is that the PFA manages the pension funds and takes the decision on which kind of investments to make while the PFC holds the pension funds and assets and acts on the order of the PFA.