RSA Mortgage Policy Stanbic IBTC Perspective On New Regulation

Watch Nike Bajomo, Executive Director, Business Development, Stanbic IBTC Pension Managers, on #ChannelsTv, as she speaks on “Your Pension and You”

And now to our next conversation the national pension commission talking about pencil recently released guidelines on assessing retirement saving accounts and rsa balance for the payment of equity for residential mortgage it’s aligned with the provisions of the pension reform act pra 2014 well to give us the an integrity of this so we have nicki majumo executive

Director business development stanbic ibtc pensions join us right here in the studio great to have you thank you for having me yeah so you know this has been trending for a while now ever since the regulation was you know put into law but i’m wondering how exactly you know is it going to work from your view because i know your stamping ipcc pension it’s going to

Work really well um this is the attempt of the national pension commission to ensure that contributors are able to access mortgage more conveniently they’ve saved you know certain significant amount of money and the law allows them to take up to 25 percent of their savings to make a deposit for a residential mortgage to do that some of the criteria includes the

Fact that every anyone who’s interested in this must have contributed for at least 60 months about the employee and employer contribution must have been made for 60 months it must be an active rsa holder and the interesting part is a couple could also jointly access a mortgage in other words once they have you know met the criteria and on either side they can

Actually jointly take 25 percent each of their contributions to purchase a house and sometimes i i just wonder like you know okay after you know i’m all golden gray i’ve used part of my you know contributions for equity about 25 percent is this going to impact what i get monthly when i’m done working in any way it will impact what you get monthly when you’re when

You’re done working to the point where you’ve taken 25 of your contributions for the mortgage but if you look at it from a positive point of view the asset acquired is also growing so if for instance you had a house before now and you bought another one with your residential mortgages and if you like an investment property so at the end of the day you’ve done

Well you can continue to earn rent or you want to sell and all of that but the more important part is having access to 25 today you’re still making contributions up until the time that you retire right so at the money it’s still obviously been invested for you is working for you um you also have a choice to make voluntary contributions into your rsc in other

Words to augment what you’re going to be getting in retirement so you have that opportunity as well if you go to to pension up on the website you can have see guidance on how to determine to say in retirement i like to earn x amount of money monthly in retirement and then you can decide how much you’re going to make an involuntary contribution after you might

Have collected 25 or before you know to augment what you’ll get in retirement so it would affect it but you can also determine what you what you will get in retirement um at the end of the day it’s not like the pfa will tell me oh we’ve bought you the house already no we can’t anymore no you still have a balance here retirement service account which you can access

In line with normal regulation so maybe another question somebody will have on their mind is if i take in 25 for mortgage can i still access 25 lump sum when i do retire yes you can access 25 lump sum when you do retire and then get the balance either you purchase an annuity or you get a program withdrawal you know up until death all right so as a holder with uh

Stanbic ibts how do i take advantage of this um i said hold our stomach iptc to take advantage you need to get a property i’ll find a property which i’m interested in and get the seller to issue you um a purchase i mean an offer letter with your offer letter you would ask you would um see a mortgage lender could be a bank and sometimes you know there are other

Mortgage houses that you could access the national pension commission will publish a list of mortgage lenders approved mortgage line usually licensed by the cbn i think that would just be the usually licensed by the cbn one and the second part is they must have um participated in the contributory pensions scheme to date in order to have a pension certificate that

Says they have been contributing you know their employers are also compliant and when you approach the mortgage lender with your offer letter they go do the checks and at the end of the day they request you to send in your statements you go to your pfa that’s where stanby comes in and requested for a request for your statement your pension statement which will

Indicate you’ve made contributions and your employer has made contributions for up to 60 months without endorsed statement you go back to the mortgage lender and then the mortgage lender does you know um you fill an application form with the mortgage lender and then they come back to give us all the research requirements which we package and send to pay income

For approval we can obviously the rest is history you need to make sure whatever property you’re buying is actually legit because it has to be legit because the mortgage lender does all of that work they go to the verification um check with the state government that it has the right you know document um they go see the real property so it’s not you cannot

Collect um this morning to say oh i have a piece of land i want to develop it or i’m already developing a property and so i need this money to finish it it has to be for a physical health and that intermediary being the mortgage lender must be involved to ensure that you know the money is being used for the purpose for which it is intended quite interesting but

Under what are the circumstance can i also have access in you know to the money in my pensions account well there are different um exit routes one is at retirement which is the reason the money stay in the first place the order would be um when somebody loses um their employment whether you resigned or there was a rationalization in the organization i needed

To leave the organization then you can access 25 or whatever i sit in your retirement savings account after four months if you’re able to demonstrate that after four months you haven’t gotten in another employment then you can access it up to 25 percent of of that under health ground health grounds being that your husband the person has been declared if you

Like immobile and i mean unable to work um then you know certain documentations will be required from the health authorities and all of that then you can access money is you know under health ground and finally you could also access monies if you had voluntary contribution and you wanted to access a part of your voluntary contribution that’s a part of the

College contribution called the contingent part you can access that contingent part before retirement all right but is it going to be fast yes this all happens hope i’m not going to be running from uh one but from pillar to post trying to get my money i’m going to get it in record time you will get it in record time stomach ibtc has been paying um contributors

Since about 17 years ago when they started and we have paid up to 1.2 trillion in retirement benefits since in the last 17 years we have over 60 000 retirees on our database and they get their money’s ass and when you on a monthly basis quite interesting you have lots of testimonies all right so uh what if uh you know you know getting customer service you know

It can be quite you know daunting you know what other channels you know can we reach you on my favorite channel with the stomach ibtc mobile app and so if you download the stomach ibotism mobile app on your phone so it’s mobile um you could access it by varied a number of things so typically typically clients would like to have their statement as i want to do

If you go on the stomach i beat this number a mobile app you can actually request for a statement and get it in two minutes so let’s in your email your registered email with the stomach ibtc of course on your first you see your balance your humanity contributions your voluntary contributions and your total on the first page um you can if you wanted to go to the

Embassy for instance you could actually request for a letter to the embassy from the mobile app and you get that within two minutes into your registered um email address if you are one of the people who would rather talk to a human being i want to go to a branch understand the guy but it’s a mobile app you see all of a list of branches by um zone whether in the

South south is you can just click on which location you’re at and you see all the offices that we have we have our 30 offices and counting across nigeria on the mobile app you can see all of the new newsletters that we’ve had so you can educate yourself about you know varied things about pension we have different faqs on the mobile app just to educate yourself

So that’ll be my go-to you know because eventually if you wanted to apply for your benefits whether it’s 25 or um assignment you could actually go to the mobile and start the process you know from the mobile app all right um you know so that’ll be my go-to of course we have the email we have the multilingual call center so if you’re not comfortable with english

We speak for other languages speaking you’re about hausa and igbo um and it’s a 24 hour by seven uh um call center so whether it’s 2 a.m in the morning or three times a human being on the other line to um speak with you yes and all of that so my go-to will be the mobile app okay i’m gonna try and reach out after the program see if i can get some of my benefits

Well you’re working thank you so much uh executive director a business development stanbic ibtc pensions great having you on the program thank you very much thank you

Transcribed from video
RSA Mortgage Policy Stanbic IBTC Perspective On New Regulation By Stanbic IBTC