A Bill, the Pension Reform Bill 2013, to repeal the Pension Reform Act 2004 (as amended) and enact the Pension Reform Act 2013 is undergoing legislative process at the National Assembly. Some of the fundamental changes proposed in the Bill include:
- The scheme will be applicable to employers with 3 or more employees (currently 5 or more);
- The total rate of contribution is 20% (currently 15%) of monthly emolument with a minimum of 12% (currently 7.5%) by the employer and a minimum of 8% by the employee (currently 7.5%); and
- Basis of monthly contribution to be total emoluments as may be defined in the employee’s contract of employment but shall not be less than a total sum of basic salary, housing allowance and transport allowance (currently, monthly emolument means a total sum of basic salary, housing allowance and transport allowance).
Here is a copy of the Bill for your use.