The National Pension Commission, has commenced approval for workers to use 25 per cent of their Retirement Savings Accounts as mortgage.
It disclosed this in a statement on Friday, titled, ‘PenCom approves guidelines on accessing Retirement Savings Account balance, for payment of equity contribution for residential mortgage by RSA holders’.
According to the statement, PenCom stated that it is pleased to inform all stakeholders and the general public, particularly RSA holders, that the commission has approved the issuance and immediate implementation of the guidelines on accessing RSA balance towards payment of equity contribution for residential mortgage by RSA holders.
According to the PenCom, the guidelines cover pension contributors in active employment, either as a salaried employee or as a self-employed person.
It added that the maximum amount to be withdrawn is 25 per cent of the total mandatory RSA balance as of the date of application, irrespective of the value of equity contribution required by the mortgage lender.
It noted that Where 25 per cent of a contributor’s RSA balance is not sufficient for payment as equity contribution, the RSA holders may utilise the contingency portion of their voluntary contributions, if any.
To qualify as a mortgage lender for the purpose, it stated, the company must be licensed by the Central Bank of Nigeria, comply with the Contributory Pension Scheme and have valid Pension Clearance Certificate.
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