This notice is to draw the attention of members of staff of the University of Lagos (UNILAG) to the importance of preparing a valid Will in relation to the distribution of their assets and Retirement Savings Account (RSA) benefits.
This is in line with a directive from the National Pension Commission (PenCom), which indicates that “where an RSA holder dies before retirement, the deceased’s retirement benefits may be paid to a beneficiary under a WILL, or depending on the circumstances, to the spouse and children, recorded next-of-kin, a designated person, or an administrator appointed by the Probate Registry”
Importance Of The Will In Accessing The RSA
- To clearly identify the beneficiaries: A Will allows an employee to clearly state who should benefit from the estate, including the person’s RSA benefits, subject to applicable law and the procedures required for payment
- To make access to the RSA benefits easier after death: When an RSA holder dies, the PFA must establish who the lawful beneficiary or beneficiaries are before releasing the deceased’s pension benefits. A valid Will that has been admitted to Probate can provide an important legal basis for establishing entitlement. PenCom’s regulations specifically require a PFA to confirm the validity of a Will admitted to Probate, Letters of Administration, or an Enrolled Order of Court.
- To prevent disputes among family members: A clear Will can prevent uncertainty and disagreement over who should receive the deceased’s assets and benefits
- To protect the employee’s wishes: An RSA represents accumulated contributions and investment returns. A Will helps the employee express his or her wishes concerning the distribution of assets after death.
- To prevent unnecessary delays: Where there is no Will, the family may have to obtain other legal documents, such as Letter of Administration. This can make the process more complicated and potentially time-consuming.
- To protect dependants: An employee may have children, a spouse, elderly parents, or other dependants who rely on the employee financially. Proper estate planning can help ensure that the deceased’s assets are directed appropriately.
The Will does not give the PFA permission to withdraw money from the RSA. Rather it helps establish who is legally entitled to receive the deceased contributor’s benefits. A Will can be particularly useful because it provides a clear legal indication of the deceased wishes.
