The National Pension Commission (PenCom) on Sunday says it has approved the issuance and immediate implementation of the Guidelines on Accessing Retirement Savings Account (RSA) balance towards the payment of equity contribution for residential mortgages by RSA savers.
This is contained in a statement issued in Abuja and signed by the management of the Commission.
The commission added that the approval is in line with Section 89 (2) of the Pension Reform Act 2014 (PRA 2014), which allows RSA holders to use a portion of their RSA balance towards payment of equity for residential mortgages.
The guidelines cover pension contributors in active employment, either as a salaried employee or as a self-employed person.
According to the commission, interested RSA holders (applicants) must among other things 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).
It further stipulated that 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.
According to the guidelines, RSA holders that have less than three years to retirement are not eligible.
While, married couples, who are RSA holders, are also eligible to make a joint application, subject to them, individually satisfying the eligibility requirements.
In addition, RSA holders, if registered before 1 July 2019, must have their records updated through the RSA data recapture exercise while the application for equity contribution for residential mortgage shall be in person and not by proxy.
The maximum amount to be withdrawn shall be 25 percent of the total mandatory RSA balance as of the date of application, irrespective of the value of equity contribution required by the mortgage lender.
The National Pension Commission, therefore, urged interested RSA holders to contact their PFAs for more information and guidance.