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Pension law in Festac Town, Nigeria falls under the umbrella of Nigeria's National Pension Commission (PenCom). The Pension Reform Act of 2004, reviewed in 2014, established a Contributory Pension Scheme for both public and private sectors. The law mandates every employer and employee to make a minimum contribution towards the scheme.
You may require a pension lawyer when you encounter issues such as disputes over benefits, claims denials, or when calculating pension entitlements. Legal help might also be necessary when you intend to implement a pension plan for your employees or when there are changes in the pension laws that you must understand and apply correctly.
In Festac Town and the greater Nigeria, the Pension Reform Act requires both employers and employees to contribute a minimum of 7.5% each towards employee pensions. This rises to 10% for the employer and 8% for the employee under the 2014 amendment. Penalties exist for non-compliance, and the Act also mandates life insurance for employees.
The statutory retirement age for most professions in Nigeria is 60 years or 35 years of active service, whichever comes first.
The funds are managed and administered by Pension Fund Administrators, licensed and regulated by PenCom.
According to the Pension Reform Act, a contributor can only have access to funds in their Retirement Savings Account under specific conditions before retirement.
Continual failure to make contributions attracts penalties stipulated by PenCom.
Minimum Pension Guarantee ensures that contributors are not left without any earnings at retirement, even if they exhaust their Retirement Savings Account. The exact amount is decided by PenCom.
Key resources include the National Pension Commission (PenCom) website, Labour Act of Nigeria, and Industrial Arbitration Panel. Also, non-governmental organizations like the Nigerian Union of Pensioners could prove helpful.
If you need legal assistance with pensions, consider getting a lawyer experienced in pension law. Further, you may want to reach out to PenCom or any other relevant organization for advice or inquiries related to pension matters.
