We offer a unique investment plan that offers financial protection for you including life insurance coverage which is payable in the event of your death within the policy. Reasons why I need a Corporate Savings Plan? Savings for an intended purpose Tax relief on savings 2.5% interest per year with a life insurance cover Financial security for you You can use this policy as a collateral for a loan

DIFFERENT BETWEEN PROGRAM WITHDRAWAL & ANNUITY

The Contributory Pension Scheme, CPS, seeks amongst others to ensure that every worker receives his retirement benefits as and when due. Accordingly, Section 4(1) (b) of the Pension Reform Act, PRA 2004 allows a Retirement Savings Account, RSA, holder upon retirement to utilize the balance of his RSA for ‘Programmed withdrawal or annuity for life purchased from a life insurance company licensed by the National Insurance Commission, NAICOM, with monthly or quarterly payments.’ Features of Programmed Withdrawal It is product of Pension Fund Administrator (PFA) Pays pension over an expected life span Longevity risk – RSA balance may be exhausted during life time Retiree can collect lump sum, provided monthly pension is 50 per cent of last pay If retiree dies within 10 years of retirement, RSA balance goes to beneficiaries of the deceased as inheritance If retiree dies after 10years of retirement RSA balance goes to beneficiaries of the deceased as inheritance A retiree on Programmed Withdrawal with a PFA can move to another PFA A retiree on Programmed Withdrawal with a PFA can change to annuity with insurance company The fund is in the RSA of the retiree with PFA Return on investment belongs to the retiree in his RSA PFAs forward daily and monthly return to PenCom Retiree receives periodic RSA statement Programmed Withdrawal retirees’ assets are held by Pension Fund Custodians, PFC. Features of annuity Annuity is a product of insurance company Pays pension for life Longevity risk is passed to insurance company who pays pension for life Retiree can collect lump sum, provided annuity is 50 per cent of last pay If retiree dies within 10 years of retirement, monthly annuities will be paid up to 10 years to beneficiaries because annuity is guaranteed for minimum of 10 years If retiree dies after 10 years of retirement no inheritance will be passed to beneficiaries A retiree on annuity with an insurance company can move to another insurance company after two years A retiree on annuity with insurance company cannot change to Programmed Withdrawal with PFA The fund is in the annuity pool with insurance company Return on investment belongs to the pool Insurance companies are to forward monthly and quarterly return to NAICOM No statement of account is given Annuity retiree assets are held by the insurance company