No fewer than 90 workers have accessed N986.88m out of their Retirement Savings Accounts with their Pension Fund Administrators to enable them acquire residential mortgages as of the end of June 2023.
The National Pension Commission disclosed this in its second quarter report obtained by The PUNCH on equity contribution for residential mortgage request approved.
It stated that, “One hundred and fifty holders requested to access up to 25 per cent of their RSA balances towards payment of equity contributions for residential mortgage during the quarter under review.
“Approvals were granted to 90 requests, amounting to N986.88m, while 60 were rejected due to incorrect documentations.”
PenCom approved the guidelines to access RSA balance for payment of equity contribution for residential mortgage by RSA holders.
“In order to ensure that RSA holders own a house during their work life, the commission released the guidelines on accessing Retirement Savings Account balance towards payment of equity contribution for residential mortgage by RSA holders,” the Director-General, PenCom, Aisha Dahir-Umar, said.
The approval is in line with Section 89 (2) of the PRA 2014, which allows RSA holders to use a portion of their RSA balance towards payment of equity for residential mortgage.
Any worker interested could approach his PFA to get explanation on the process. The PFA will print the statement of account and determine the 25 per cent the worker can use for mortgage.
PenCom states that the maximum amount to be withdrawn is 25 per cent of the total mandatory RSA balance as of the date of application, irrespective of the value of equity contribution required by the mortgage lender.
Where 25 per cent of a contributor’s RSA balance is not sufficient for payment as equity contribution, the RSA holders may utilise the contingency portion of their voluntary contributions (if any).
SOURCE: PUNCHNG
