How Does the Federal Government Remits the Pension Contributions of its Employees into their RSAs?

[Donolatunji]

i have always thought about how federal governments go about the pension funds that it will be kept somewhere and at the right time they will be sent directly to each beneficiary's bank account... No matter the population of the pensioners.
Does anybody has an idea?

 

[Trexxxy]

Well to the best of my knowledge I think most times what the government does is to keep the funds in a domiciliary account, every month they remove some particular funds from their workers salary and repatriate to the domiciliary account. I might be wrong too.

 

[Alexandoy]

In our country there are 2 institutions that handle the pension plans - the GSIS for government employees and SSS for employees of private companies. The employees contribute a monthly amount to the build up of his pension plan. The institution invests all the collected money into high-yield investments like treasury bills, government bonds and bank to bank loans. Some others are invested in blue chip stocks. When someone retires the institution would set aside the money intended for his lump sum or monthly pension.

 

[Ojonuyo]

First you must come to the understanding that the world is advancing technologically every day. In other words, managing or keeping records of a thousand pensioners is not a big deal for the government to handles. Once you are faithful in paying your pension fees while working then be assured of your pension when retired.

 

[Sanusi]

I really don't have an idea where federal government used to keep the money they took out of their employee salary, but all i know is that federal government usually deposit it into an account. But i don't know what they used to call that account.

 

[Chumzy]

Ordinarily when the month ends and payment is due then it should be made to employees. The employees pension is deducted at source and the employer which is the government on this case pays their portion. It is this way in my country because we operate on a contributory pension scheme where both contributes.

 

[Smithkid]

Well to the best of my knowledge I think most times what the government does is to keep the funds in a domiciliary account, every month they remove some particular funds from their workers salary and repatriate to the domiciliary account. I might be wrong too.

 

[Niftyyem]

I guess there should be bodies under the government that take care of that and there are probably accounts where those funds are kept as they are monthly removed from each worker's monthly pay.

 

[WhiteHouse]

Well I'm taking a huge guess. I think the money you receive now on your rsa account as a pensioner is the money removed from those that are currently working/in service.
Every month you contribute to your RSA funds as active worker and from there they remove when it is time.

 

[Sariana23]

In my country, the government is in charge of investing the monthly amount collected from each employee, to generate profits that benefit the nation. With the profits or funds of the state, they cancel the pension of each retired employee on a monthly basis. In the case of private employees, who decide to quote a monthly payment in insurance companies, these insurers also invest in different companies or banks for the same purpose.

 

[Kiwi]

Those who has not the job opportunities and are jobless so they face so much difficulties in life. There are limited job opportunities in the country and even the one that you expect to provide you with job might still tell you you are not qualified enough. It is this way in my country because we operate on a contributory pension scheme where both contributes.

 

[Jimmie150]

There are a lot of ways through which governments all over the world remit's this money. One popular way is by deduction of a particular sum of money every month and channel it to a particular RSA(Retirement savings account) that was created by a PFA (Pension fund administrators) for that person.

Post automatically merged: Feb 5, 2021

There are a lot of ways through which governments all over the world remit's this money. One popular way is by deduction of a particular sum of money every month and channel it to a particular RSA(Retirement savings account) that was created by a PFA (Pension fund administrators) for that person.

 

[Akinwale701]

i have always thought about how federal governments go about the pension funds that it will be kept somewhere and at the right time they will be sent directly to each beneficiary's bank account... No matter the population of the pensioners.
Does anybody has an idea?

You can only get to know this in a country where the government is accountable to the citizens. Not in a country where corruption is the order of the day, where pensioners have to suffer for many months before they get their meagre amount of money they pay them

 

[Richard92]

Honestly I will say I don't know how government remit the contributions of workers pension to RASs because I've never worked in a pension fund organisation before another I'm a worker who is awaiting pension all I know is that government do remit pensioner funds.

 

[Mawome]

Some states do there own on weekly basis while others do there own on daily basis, but for me it doesn't matter how, and where they , and when they contribute. They should all was make sure that the money is actually read when the pensioners need it

 

[nasiusman95]

Following the failure by some Nigerian employers to remit their employees’ contributions to their Retirement Savings Accounts, the National Pension Commission is considering measures to compel defaulting employers to do so through audits, writes Ebere Nwoji

Recent reports in the media that the National Pension Commission, ( PenCom) would soon commence auditing books of over 200,000 employers in the country to fish out those who fail to remit the mandatory 18 percent pension contributions of workers to their Retirement Savings Account( RSA) is a cheering news to Nigerian workers and retirees.
Also, similar reports that the Commission has recovered over N10 billion unremitted pension contributions in principal and interest penalty has rekindled workers hope in the scheme.
Indeed, the development is an inspiring one to the workers and a boost to public confidence in the Contributory Pension Scheme (CPS) considering the fact that many employers, who keyed into the scheme especially private sector employers are often reluctant to remit not only their own part of contribution to their workers’ RSA Account as stipulated by law but also fail to remit the eight percent part of their workers’ salary, which they deduct every month.

 

[Setho]

Actually the government doesnt keep the money in a secret place and then remit it to those to be paid at the appropriate time. This is because they do not even need to do that. Every year, when the government is making budgets, they then include the money to be paid as pensions for that year. It is in this and the difficulties attached that people ask that a private firm comes in place.

 

[Nurudeen]

That's not hard to know. The federal government automatically remove such funds from employees account into the pension scheme Account and they pay them what is left at the end of the month into their registered bank account with the government

 

[Sincerem]

They have personalities who take care of that area for the government. That's why they employed different people in different roles during their regime. In my country, the states have their own workers they pay, through state funds. Same goes to the federal government, they all have their own workers which they pay salaries to.

 

[FreshKaz11]

i have always thought about how federal governments go about the pension funds that it will be kept somewhere and at the right time they will be sent directly to each beneficiary's bank account... No matter the population of the pensioners.
Does anybody has an idea?

I hope they got paid on time,so many old pensioners died along the line,while trying to get their pension money. So like a country that am living, I guess there is no good data base to secure pensioners money,and most of the government workers to share their pension out to them when is due, we also reduce or divert the money else where I guess.