The IBTC Pension Fund Administrators has hinted that contributors under the Contributory Pension Scheme (CPS) can now use part of their contributions to access mortgage facilities.
Mr. Adebiyi Rashidat, the South-West (Region) Relationship Manager of the firm dropped this hint at the multipurpose auditorium of the Federal University Oye-Ekiti (FUOYE)during an interactive session with the staff of the institution recently. He said this development would enable contributors to access part of their fund as equity contribution for residential mortgage.
According to him, this initiative forms part of the Pension Reform Act which allows contributors to have access to their savings before retirement. “For the first time you are able as a contributor to utilize part of your balance to secure your own private house.” The relationship manager further revealed that this development was not restricted to IBTC alone, but also applies to the other seventeen existing PFAs as well.
Answering questions on whether the National Pension Commission has started implementing the 18% increment with effect from July 2014 as contained in the Pension Act, 2004, Mr. Adebiyi said the commission was yet to effect the increment, but assured that whenever it takes off the arrears would surely be taken care of.
He revealed that some of problems associated with contributors’ savings account update mostly emanates from improper documentation. He charged married or brides to-be to always update their newly adopted names with their respective Pension Fund Administrators to enable their existing profiles to be updated accordingly. He also counseled contributors who joined the federal civil or public service from other organizations where they had commenced the contributions to forward necessary account details to their respective Pension Fund Administrators who will pursue and ensure its merger with the on-going contributions. He added that for those who joined the public service from the private sector, they should forward their National Insurance Trust Fund certificates to their preferred PFA for appropriate actions.
On change of a PFA, he disclosed that contributors are at liberty to change at most once in a year. The Stanbic-IBTC/Contributors’ parley, according to the bank representative was a routine exercise designed by the company to acquaint contributors with on-going developments in the industry as well as to get feedbacks from contributors so as to ensure a mutually beneficial relationship. He said the doors of the organization were widely open to contributors and gave a code through which contributors could check their pension account balances instantly:
bal- pen-303088 using your gsm phone.