RSA Multi-Fund Structure

RSA Multi-Fund Structure

The Retirement Saving Account RSA Multi-Fund Structure is a framework stipulated by National Pension Commission PENCOM aims to match RSA holder’s age and risk profile to one of four distinct funds.

And, according to PENCOM, every Pensions Fund Administrators shall create and four (4) RSA funds as follow:

  1. FUND I: For contributors (RSA holders) that 49 years and below (by choice)
  2. FUND II: Default fund for all active contributors that 49 years old and below.
  3. FUND III: Default fund, strictly for active contributors that are 50 years and above.
  4. FUND IV: For retiree fund

Details of Fund Categories

  • The nominal Value of Accounting Unit VAUF (Unit Price) shall be N1.00 at the commencement (take-off) date.
  • PFAs shall redeem units from ‘Active’ in respect of contributors that are 49 years and below, who have formally applied to move to FUND I. The Naira value of t balances in their RSAs  shall be transfer to purchase units in FUND I at the nominal unit price of N1.00 on the effective take-off date (1st day of effective implementation of the Multi-Fund Structure)
  • Subsequent entrants into FUND 1 after the take-off date shall buy into the FUND at the Value of Accounting unit of the preceding date.
  • The fees on FUND I shall be computed based on Net Assets value of the FUND.
  • This is the current RSA Active FUND and shall be known as “FUND II”. This is Default fund for all active contributors that 49 years old and below.
  • FUND II shall continue to maintain VAUF of the current RSA ‘Active’ Fund, which is computed on the basis of the Net Assets Value and the total number of Accounting units outstanding.
  • Members of FUND II (49 years and below) are allow to,move to FUND I, based on formal application. Members of FUND II who are not 50 years and above shall not be allowed to move to FUND III.
  • The fees on the FUND II shall be computed based on Net Assets Value of the FUND. The Assets based fees shall be accrued daily and charged to the fund at the end of every month. subject to approval of the fee invoice of the commission
  • PFAs shall redeem units from RSA ‘Active’ Fund (FUND II) in respect of contributors that are 50 years and above (as at their last birthday) into FUND III. The total Naira value redeemed shall be transferred to purchase unit in FUND II at a nominal unit price of N1.00 on the effective take-off date.
  • New entrants into FUND III after the take of date shall buy into the Fund at the Value of an Accounting unit of the preceding day.
  • Members of FUND III (50 years and above) shall not be allowed to move FUND I. However, member of FUND III can be move to FUND II, if they so wish.
  • The fees on FUND III shall be computed based on Net Asset Value of the FUND. The Assets based fees shall be accrued daily and charged to the Fund by the end of the month, subject to approval of the fee invoice of the commission.

 

PFAs shall maintain the RSA retiree Fund to be known as ‘FUND IV’. FUND IV shall continue to be maintained in accordance to the Guidelines on  Retiree Fund.

  • Active Contributors(FUND i, FUND II, and FUND III) are not eligible to buy into FUND IV, except upon retirement.
  • Members of FUND IV are not allowed to move out of the Fund.
  • Fees on FUND IV shall continue to be income based fee
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