What Happens to Your Pension When You Change Jobs in Nigeria?

You have changed jobs three times, your salary has changed, your employers have changed and, in some cases, even the industry you work in has changed.

But what happened to the pension deductions from all those payslips?

In Nigeria, employees covered by the Contributory Pension Scheme (CPS) have retirement contributions paid into a Retirement Savings Account (RSA) managed by a Pension Fund Administrator (PFA).

The scheme covers employees in the public service and qualifying private-sector organisations under the Pension Reform Act.

The contributions come from both the employee and employer and are paid into the worker's RSA. The PFA invests the funds, so the balance can increase through both new contributions and investment returns.

What happens to your pension when you leave a job?

Leaving an employer does not close your RSA.

The pension contributions that have already been credited to the account remain there. Your former employer does not take them back simply because you no longer work there.

If you move to another company, the contributions from the new employment can continue into the same RSA.

PenCom's guidance on movement between employments states that the RSA remains with the PFA chosen by the contributor. There is also no qualifying period for pension contributions, meaning a contribution due for a short period of employment does not disappear simply because you did not stay long.

What if you change jobs three times?

Consider a worker earning ₦300,000 a month at three different employers.

Using the statutory minimum contribution rate of 18%, made up of 10% from the employer and 8% from the employee, the monthly contribution would be ₦54,000, before considering any higher voluntary contribution agreed between the employer and employee.

If the worker spends 12 months at each company:

• Employer A: ₦648,000

• Employer B: ₦648,000

• Employer C: ₦648,000

That gives ₦1.944 million in contributions over three years, before investment returns.

The worker has changed employers three times, but that does not mean there are three pension accounts. The contributions can accumulate in the same RSA.

Do you need to change your PFA?

No. Changing employers and changing PFAs are separate decisions.

When you start a new job, you do not have to choose a new PFA simply because your employer has changed.

You can remain with your existing PFA and provide your RSA details to the new employer so contributions can be remitted.

A contributor can alsotransfer an RSA from one PFA to another once a year without giving a reason. That transfer is separate from changing employment.

What if a contribution is missing?

This is where checking your pension record matters.

If an expected contribution is not showing in your RSA, start with your PFA.PenCom's guidance says an employee with an RSA PIN and uncredited contributions should provide the PFA with a copy of the welcome letter obtained from the PFA and a copy of the employment letter.

If the issue is not resolved, you can take the complaint to PenCom, providing your RSA PIN, PFA, employer details and a description of the problem.

After changing jobs, check that your new employer has the correct RSA details and that contributions begin appearing in your pension records.

It is also worth checking older contribution periods if you suspect deductions were made from your salary but the corresponding pension payment is not reflected.

Changing jobs can change your employer, salary and career path. It does not, by itself, mean starting your pension again.