Implementation of Pensions Amendments Act 883

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IMPLEMENTATION OF THE NATIONAL PENSIONSIMPLEMENTATION OF THE NATIONAL PENSIONS

(AMENDMENTS) ACT, 2014 ACT 883(AMENDMENTS) ACT, 2014 ACT 883

AUGUST 10, 2015


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OUTLINE OF PRESENTATION


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Background to th NationalPensions (Amendments) Act 2014,

Act 883 The National Pensions Act, 2008 (Act 766) was enacted on

12th December, 2008. ontrib!tors who were a"ed ##$ears or abo%e as at 1st &an!ar$ 2010, the e'ecti%e dateor imlementation o the Act, were allowed to remain onthe *ocial *ec!rit$ Act, 1++1 (PND 2-7)

*!bse!entl$, it was obser%ed that contrib!tors d!e toretire !nder Act 766 ater # /10 $ears o its imlementationco!ld not acc!m!late eno!"h contrib!tions in the *econd/

Tier to "!arantee them s!erior l!m s!m benets

Amendment then became necessar$ to lower, !rther, thea"e eemtion threshold or that a"e cohort in order toenhance their retirement aca"es and to ro%ide or

related matters


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Di'erences betweenPND aw 2-7 and Act 766 O!d "PN#$L 2%&' N( "Act &))'

3mlo$er 12.#4 15.04 3mlo$ee #.04 #.#4

1&*5+ 1*5+ Undr PN#$L 2%& **NT solel$ resonsible or l!m s!m monthl$ ensions

a$ments **NT17.#4 (114 towards monthl$ ensions, -4 or l!m s!m

2.#4 or N9A)

Undr Act &)) Three/Tier Pension *cheme as ollows:

;andator$ 1*T Tier towards monthl$ ensions **NT: 15.#4(114 towards monthl$ ensions 2.#4 or N9A)

;andator$ 2nd tier towards l!m s!m a$ment Pri%ate: #4


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#ur-ng Tran.-t-ona! Pr-od o/ Act &))-!ntat-on

&an!ar$ 1, 2010 >ctober 51, 2012;andator$ 1st and 2nd Tier contrib!tions

Two searate che!es iss!ed

15.#4 to **NT

#.04 to 2ndTier lod"ed in a TPFA at ?o@ or NPA thro!"h**NT

Background to th NationalPensions (Amendments) Act 2014,

Act 883


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National Pensions (Amendments) Act 201-, Act 885

Chere a worer is eemted !nder s!bsection (1)b!t has alread$ contrib!ted to the second/tier

scheme, the contrib!tions and ret!rns o theworer !nder the second/tier scheme shall bere!nded to the Tr!st / *. 60 (-)

ed!ced minim!m maim!m ension ri"hts orersons !nder Act 766 rom #04 to 57.#4 804to 604 resecti%el$ *. 77

R!ant Sct-on. o/ thAndnt Act at a g!anc


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I!ntat-on

Ro! o/ SSNIT denti$ and lace all those a"ed #0 $ears or more as at 1st&an!ar$

2010 on the PND aw 2-7

etrie%e, thro!"h NPA, the #4 2ndTier contrib!tions lod"ed in the

TP=A at the ?an o @hana between &an!ar$ 2010 and December 2012

etrie%e the #4 contrib!tions aid to the mana"ers o the 2ndTier

*cheme and credit **NT acco!nts o the ersons a'ected

e/com!te and a$ an$ di'erences to ersons who ha%e alread$

taen their ension benets !nder Act 766 and contin!e to a$ their

monthl$ ensions based on the re/com!ted amo!nts

=!rnish emlo$ers thro!"h their %ario!s branches, the a'ected

emlo$ees b$ =rida$, 2-thAril 201#. etters a%ailable at **NT

branches or ic !


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I!ntat-on

Ro! o/ 3AL$O4Tru.t.

ecei%ed and reconciled list o a'ected emlo$ees rom **NT

Pa$, to **NT, all the #4 contrib!tions collected into the *econd/Tier

to"ether with the acc!m!lated interest in resect o those emlo$ees

modalities or a$ment to be determined b$ NPA **NT

=ile contrib!tion reorts in accordance with the re!irements o the

aroriate scheme code a$ contrib!tions on behal o emlo$ees

based on the ri"ht scheme codes e'ecti%e 1st;a$ 201#


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I!-cat-on.

Persons who t!rned #0 or more on 1st&an. 2010 will re%ert to PND 2-7

>%er -00,000 members a'ected nationwide (1#- at )

-,86- !alied a'ected ersons aid di'erences (**NT ;edia elease 2+0-1#)

As and when the$ !ali$ or ension benets, **NT will a$: !m s!m ;onthl$ ensions

Pensions contrib!tions or the a'ected ersons bac to the old rate o 17.#4

There will be a di'erence o 14 (0#4 emlo$ee 0.#4 emlo$er) between this

contrib!tion rate that !nder Act 766 9ow will this di'erence be resol%edE

*ho!ld one ot to remain on Act 766E

om!te comare benets !nder both otions


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I!!u.trat-on

$outat-on o/ Pn.-on Bnt.


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I!!u.trat-on

omarati%e Pension ?enets om!tation (@9*)PND 2-7 AT 766

A"e at retirement: 60 $ears =!ll Pension =!ll Pension

A%era"e o 5 $ears hi"hest salaries

F(2+,-65.0+G20,#6#.51G16,052.85)H5I

22,020.-1 22,020.-1

Pension ri"hts: F#04G(581/2-0) 0.12#4 I F57.#4G(581/180) 0.0+57#4 I

67.654/

/#6.5-4

3arl$ retirement red!ction actor 1 1

Ann!al ension 1-,8+1.50 12,-07.12

;onthl$ ension (witho!t l!m s!m) 1,2-0.+- 1,055.+5

esid!al monthl$ ension (ater 2#4 l!ms!m)

+50.71 1,055.+5

2#4 l!m s!m (1-- A=J104 a K 2#,+#+.-5 /


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I!!u.trat-on

Totals o resent %al!e o monthl$ ensions and l!m s!ms are ro!"hl$ at ar

!nder both PND 2-7 and Act 766.

9owe%er, the l!m s!m "G89 25,:5:*%7' a$able !nder PND 2-7 is m!ch

hi"her than the acc!m!lated contrib!tions and ret!rns "G89 &,%0)*&'!nder

Act 766.

Ad%ice:

Deends on the indi%id!al in%ol%ed one is to al$ the Lbird in handM aiom, then, it is ob%io!s that PND 2-7 is a

better choice than Act 766 d!e to its s!erior l!m s!m, in this case

All the a'ected ersons ha%e been re%erted to PND 2-7 b$ dea!lt

To elect to remain on Act 766, one needs to contact a branch o **NT or the

orm.

$outat-on o/ Pn.-on Bnt.


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How to Apply for Old Ae !etirement "enefit

ontact the nearest **NT ?ranch with $o!r letter o retirement rom

The **NT ?ranch will ro%ide $o! with a Pension Alication =orm

or comletion omlete the =orm and attach two o $o!r recent assort/sie

hoto"rahs

Pro%ide an acti%e ban acco!nt n!mber that bears $o!r name as

ertains to that on **NT records

*!bmit the comleted =orm, the assort/sie hoto"rahs and the

letter o retirement to the **NT ?ranch

The ?ranch will inorm $o! when the laim is nall$ aro%ed and

aid


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Implementation of Pensions Amendments Act 883

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