This section seeks to introduce to you the types of benefits payable under the National Pension Scheme Act and explains the conditions one must meet in order to qualify for any of the benefits.
There are four benefits payable under the Act, namely: retirement pension, invalidity pension, survivors’ pension, and funeral grant. The retirement pension, invalidity pension, survivors’ pension are paid to individuals who meet the minimum criteria for those benefits. Members who contribute to the Scheme but do not meet the minimum conditions are for a person is paid lump sum consisting of their indexed contributions and interest.
Please ensure that you familiarize yourself with the conditions as this will assist you in lodging a valid claim for a benefit.
General ConditionsThere are a number of conditions that are used to describe a member’s status in terms of his eligibility for benefits under the National Pension Scheme Act. These conditions relate to the number of contributions which one has made to the scheme. You will from time to time come across these terms, and you would do well to familiarize yourself with them.
To be eligible for a pension, a contributing member must have made at least 180 monthly contributions to the scheme in the case of a retirement pension. Such a member is said to be fully insured. In the case of invalidity pension; a contribution member must have at least made 60 monthly contributions but less than 180. If such a member also meets the recency of work test he is said to be, he is currently insured.
Members who make between 12 monthly contributions and 60 monthly contributions are described as being partially insured and are eligible only for a lump sum payment.
Individuals who make less than 12 monthly contributions to the scheme are said to be uninsured and would not qualify for any benefit payable under the Act.