Actuarial valuation of his/her accrued retirement benefits will be made and the amount plus his contributions to date will consist of his/her retirement benefits in his/her RSA which can only be accessed at the age of 50 years. Withdraws from the RSA will depend on the professional advice of the PFA having regard to the provisions of the State Pension Law which provides for lump sum withdrawal< programmed withdrawals or purchase of annuity.

Where an employee who has been contributing under the new pension scheme dies before his/her retirement, his retirement benefits shall be paid to his beneficiary under a will or the spouse and children of the deceased or in the absence of a wife and child, to the recorded next of kin or any person designated by him during his/her life time or in the absence of such designation, to any person appointed by the Probate Registry as the administrator of the estate of the deceased. 

An annuity is an income purchased from an approved life insurance company which provides monthly or quarterly income to the retiree during his/her lifetime.

A programmed withdrawal is a method by which the employee collects his retirement benefits in periodic sums spread throughout the length of an estimated life span.

The balance in the RSA will be used to procure an annuity that provides regular income to the contributor or fund a programmed withdrawal.

Withdrawals from the RSA can only be made upon retirement. However, where an employee makes additional or voluntary lump sum contributions into the RSA, he can withdraw such money before retirement or attainment of the age of 50 years.

Access to the RSA will only be allowed upon retirement. If an employee retires at the age of 50 years or more he/she can have immediate access to the RSA. Similarly, if an employee retires before the age of 50 years due to mental or physical incapacity, he or she can have immediate access to his/her RSA. Whereas an employee who retires under the age of 50 years in accordance with the terms and conditions of employment will not access the RSA until after six month of such retirement if he/she does not secure another employment.

In order to ensure the safety of pension funds and to avoid mixing pension business and other businesses, it is desirable that the operators deal with pension funds only. This will enhance effective regulation and supervision. 

The PFA will charge fees for the services being rendered on the RSA. Subject to such guidelines as may be issued by the Lagos State Pension Commission from time to time.

An applicant PFA must have a minimum paid up share capital of N150,000,000 while an applicant PFC must have a minimum paid up capital of N2,000,000,000 and shall be a licensed financial institution with a minimum net worth of N5,000,000,000 unimpaired by losses and has total assets of N125,000,000,000 or is wholly owned by a licensed financial institution with similar financial resources.

The PFA manages and invest the pension funds while the PFC keeps the pension funds and assets in safe custody and carries out transactions on behalf of the PFA.

A Pension Fund Custodian (PFC) is a company licensed by the National Pension Commission to keep pension money and assets in the RSA on trust for the employee on behalf of the PFA.

The Pension Fund Administrator cannot collect or spend the Pension money in the RSA.

The Lagos State Pension Commission approves licensed PFAs for its employees, regulates and generally formulates, directs and oversees the overall policy guidelines on pension matters in Lagos

The National Pension Commission is empowered by the Law to supervise and regulate new pension scheme.

It is the duty of the PFAs to administer the contributions and invest in such a way that will ensure safe and reasonable returns on investment. The reserve created by the PFAs under the new pension law would compensate for any erosion of the value of the contributions.

The State Government has established the Lagos State Pension Commission and charged it with the responsibility of regulating and supervising the new pension scheme.

The State Pension Law allows any employee to complain about any PFA to the Lagos State Commission.

The pension funds and assets in the Retirement Savings Account (RSA) are kept by the PFC as such the liquidation of the PFA will not affect the funds and assets. Besides, every PFA is expected under the State Pension Law to maintain a statutory reserve fund as contingency fund to meet claims for which it may be liable as may be determined by National Pension Commission and Lagos State Pension Commision.

All those managing or keeping custody of pension funds and assets will be licensed and continually regulated and supervised by the National Pension Commission and approved by the Lagos State Pension Commission.