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HomeBusinessN14.3trn Asset: PenCom approves guidelines for RSA holders’ access for mortgage payment

N14.3trn Asset: PenCom approves guidelines for RSA holders’ access for mortgage payment

By Kehinde Ibrahim, Lagos

WITH the pension fund asset at N14.3trillion, the Retirement Savings account (RSA) holders can now secure their dream residential houses, using the balance in their pension accounts.

The National Pension Commission (PenCom), in a statement made available at the weekend, announced the implementation of guidelines on accessing Retirement Savings account (RSA) balance for payment of equity contribution for residential mortgage by pension contributors.

PenCom added that, the approval was in line with Section 89 (2) of the Pension Reform Act (PRA) 2014, which allows RSA holders to use a portion of their RSA balance towards payment of equity for residential mortgage.

In the guidelines highlighted, it said, the plan covers pension contributors in active employment, either as a salaried employee or as a self-employed person.

It noted that interested RSA holders (applicants) must meet certain conditions’ such as: “Have an offer letter for the property duly signed by the property owner and verified by the mortgage lender; the RSA of the applicant shall have both employer and employee’s mandatory contributions for a cumulative minimum period of 60 months (five years); a contributor under the Micro Pension Plan (MPP) is also eligible, provided he/she has made contributions for at least 60 months (five years) prior to the date of his/her application, and so on,

Others include; “ RSA holders that have less than three years to retirement are not eligible; married couples, who are RSA holders, are eligible to make a joint application, subject to individually satisfying the eligibility requirements; RSA holders, if registered before 1 July 2019, must have their records updated through the RSA data recapture exercise and application for equity contribution for residential mortgage shall be in person and not by proxy.”

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