1. TRAINING ON HOW TO COMPUTE LUMPSUM & MONTHLY PENSION
CONSENT FORM:
TRAINING ON HOW TO COMPUTE LUMPSUM & MONTHLY PENSION
November, 2015

2. OUTLINES: KEY COMPONENTS OF CONSENT FORM WHY VARIATION IN BENEFIT?
COMPONENT THAT DETERMINE FINAL SALARY
PRINCIPLES FOR CONSOLIDATED ADJUSTMENT
FACTORS TO BE CONSIDERED BEFORE AND AFTER COMPUTATION
PRATICAL SESSION

3. FEATURES OF KEY COMPONENT OF CONSENT FORM – LUMPSUM & PROGRAMMED WITHDRAWAL
Lump sum payment is a residual, it is the balance standing after the determination on an amount that can fund programmed withdrawal over an estimated lifespan or an amount used to purchase an annuity from an insurance company
It has no fixed percentage on the RSA balance of the RSA holder.
May be withdrawn before programmed withdrawal or annuity, subject to the RSA balance and monthly pension.
It is not automatic that a retiree must get 50% of RSA as lump sum only what the law allows.
The Monthly Pension is first determined using the Gender, Age, ATE and RSA balance, which is peculiar to every retiree.
11/22/2018 6:39 PM

4. Size of Annual Total Emolument (ATE) Age at Retirement Gender
WHY BENEFIT VARIATION?
RSA Balance
Size of Annual Total Emolument (ATE)
Age at Retirement
Gender
Retiree’s Choices
Need to Manage expectation
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5. COMPONENTS THAT DETERMINE ATE/FINAL SALARY Basic Salary Housing/Rent
Transport (Motor Vehicle)
CONSOLIDATED SALARY
VARIANTS OF CONSOLIDATED PAY SLIP
Features of Consolidated Salary Structure include;
Consolidated Basic Salary/Housing/rent Allowance/Utility/Gross Salary/Deductions Net Salary
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6. PRINCIPLES THAT DETERMINE CONSOLIDATED SALARY ADJUSTMENT
Where Pay slip is broken down, Basic , Housing and Transport are common to all employees
Where pay slip are not broken down, empirical analysis show that Basic Housing and Transport constitute about 50 to 55 percentage of the normal gross remuneration
Basic, Housing and Transport conforms to the Annual Pensionable Allowance
Some Public Sector Organization operates consolidated salary structure
Standard ATE was agreed to be the regular allowances
For consolidated salary 50% is assumed to represent the regular allowances, hence adopted as adjusted ATE
22/11/2018

7. FACTORS TO BE CONSIDERED BEFORE AND AFTER COMPUTATION
Ensure Receipt of Accrued Right
Ensure Receipt of Outstanding Contribution or Refund
Ensure Merger of Accounts (Consolidation of RSA & Retiree)
Ensure a print out of statement used in computation
Ensure correct age is used; if age is different from age on bond slip work with age on the bond slip (for Public sector State & Federal)
Ensure right gender
Ensure payslip is not manipulated, doctored, revised (up or down)
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8. PRACTICAL SESSION
22/11/2018