Service Overview
ESA Provident Fund (Voluntary Tier 3)
3.2. ESA Provident Fund (Voluntary Tier 3) | |
The Scheme | It is a Defined Contribution (DC), tax-qualified voluntary scheme designed to offer formal sector workers an avenue for augmenting their pension savings through regular payroll contributions to a professionally managed Tier 3 Scheme. The scheme is licensed by the NPRA. |
Objectives | It is intended for organizations wishing to improve employees’ pension savings through voluntary contributions of either employer or employees or both. |
Contributions | Contributions are made through payroll deductions and are funded either by the employer, or employees or both at a mutually agreed rate. Contributions can be either pre-tax or after tax. After-tax contributions made by members can be withdrawn once every five years. |
Investment Options | There are two products (investment plans) designed to achieve dual objectives of capital growth and safety of principal. Contributions are applied for investments either by a lifecycle approach or by a self-managed plan in accordance with the choice made by the employer. |
Portability | Participants can transfer their benefits to and from the scheme whenever they change jobs. Transfers of benefits shall be subject to the vesting rules. |
Benefits | Withdrawal of benefits from the scheme shall be subject to the governing rules set by the employer of a given establishment except voluntary after tax contributions made by members. |
How to Join | The scheme is a voluntary occupational scheme so member enrollment is facilitated by employers. Interested organizations should complete participation forms and agreement to begin contributing to the scheme. |
