Multi-Fund Structure

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The National Pension Commission (PenCom) introduced and released Guidelines on investment of Pension Fund Assets in a Multi-Fund Structure that replaced the previous structure that put funds for all active contributors into one RSA Fund without considering age or risk profile of the contributors under the Fund.

The Multi-Fund Structure also known as the Life-Cycle Investment Structure was conceived by the Commission to align contributors' risk appetite with their investment horizon at each stage of their life cycle.

Multi-Fund Structure

The framework of the structure seeks to match RSA holder's age and risk profile to one of four distinct fund types: three RSA fund types (Fund I, Fund II, Fund III) for active contributors and one Retiree Fund (Fund IV) for retired RSA holders. Additionally, two other funds were introduced in February 2019 and July 2021 to meet the needs of Micro-Pension Contributors (Fund V) and Non-Interest Fund Contributors (Fund VI) respectively. Guidelines regarding a Fund for Cross Border Individuals are expected to be released by PenCom at a later date.

The investment of pension fund assets in the various Funds shall be in accordance with the Regulation on investment of Pension Fund Assets, issued by the Commission.

Objectives of the Multi-Fund Structure

  • To achieve optimum returns for contributors by aligning their pension savings with their individual risk/return profile
  • To provide investment portfolio choices to contributors.
  • To enhance safety of pension assets through adequate portfolio diversification.
  • For financial inclusion and ultimately, to have one or more fund types suitable for everyone.

Features of the Fund Types

Fund Type Exposure to Variable Investment Instruments Qualification for Membership
Fund I 75% of Portfolio Strictly by choice and not accessible to Retirees and active contributors of 50 years and above
Fund II 55% of Portfolio Default Fund for RSA holders of 49 years and below
Fund III 20% of Portfolio Default Fund for RSA holders of 50 years and above
Fund IV 10% of Portfolio Default Fund for only Retirees
Fund V 5% of Portfolio Strictly for Contributors under the Micro- Pension Scheme
Fund VI 55% of Portfolio Contributors that choose to have their pension contributions in Non-Interest Money and Capital Market Products

Operational Modalities

Contributors that wish to move to a new Fund shall be required to indicate their choice in writing via the completion of a standard Inter-Fund Transfer Instruction Form. We shall, thereafter, transfer the current value from the current fund and buy the equivalent Accounting Units in the indicated Fund.

FCMB Pensions shall maintain proper books of account on all the Funds in accordance with the Fund Accounting Guidelines issued by the Commission.

Should you require further clarification, you can send an email to, live chat with us on or call us on 08059580002, 08032752888 or 07080633002-4.

Some Frequently Asked Questions concerning the Multi Fund Structure.

A1. The Multi-Fund Structure represents a framework that aims to combine the age and risk profile of RSA holders as well as accommodate different preferences and market segments such as the Micro-Pension Scheme.

A2. The Multi-Fund Structure gives a contributor more control over how their pension funds are invested based on their preferences and risk tolerance. For Example, a contributor in Fund III owing to the default grouping based on age, may have more tolerance for risks and uncertainty and could request to be moved to Fund II. It also enables the accommodation of market segments such as the Micro-Pension Scheme (Fund V) and in the future, Cross-Border arrangements.

A3. The Multi-Fund Structure gives you more opportunity to achieve your retirement comfortably as it takes cognizance of risk and age.

A4. Variable income instruments represent investments that yield income or returns that cannot be pre-arranged from the date the investments were made. There is daily fluctuation in the prices of such instruments and this category include Ordinary Shares, Real Estate Investment Trust, Infrastructure Funds and Private Equity Funds.

These investments have the tendency of generating attractive returns over the long term but could be risky due to uncertainty and fluctuations in market prices and returns.

A5. When investing funds, everyone has a limit to the amount of risk that they can take. This is termed risk tolerance. Basically, younger individuals seem to have more ability to take risks as they still have time to regain from loses (if any). As a person gets close to retirement, it is safer to limit the amount of risks they take and reduce exposure to uncertainty as they would start drawing down on their pensions within a short period.

Hence, the allowable exposure to variable income instruments have been designed such that Fund I has the highest allowable limit which is followed by Fund II, III and IV respectively, thereby reducing the risk and uncertainty of contributors in line with their ages.

A6. By default, contributors are moved to Fund III from Fund I or Fund II as they turn 50 years of age. An active contributor can make a formal request to his or her Pension Fund Administrator to move from one fund to another which is subject to Guidelines by the National Pension Commission. This means that an active contributor who is 49 years and below can opt for Fund I, while an active contributor in Fund III could request that his or her funds be moved to Fund II. Nevertheless, the Regulation does not allow an active contributor in Fund III to move to Fund I while an active contributor in Fund II is not allowed to move to Fund III which is mainly for active contributors that are 50 years and above, except he/she is up to 50 years old and had previously asked to be moved to Fund II but now wants to return to Fund III.
Fund IV is for retirees only and members are moved to this Fund by default when they make submission of required documents for transition to draw-down. 

Fund V is for Micro-Pension Contributors only, a Fund created for employees of organizations with less than three employees, the self-employed persons as well as those in the informal sector.
As for the Non-Interest Fund (Fund VI), a contributor can request to be moved from Fund I, Fund II or Fund III to the Active Fund VI while a retiree can opt to move from Fund IV to the Retiree Fund VI.

A7. An active contributor may formally request to move from one Fund type to another Fund type within a Pension Fund Administrator once in 12 months without being charged. 

Where an active contributor requests for any additional inter-fund movement within a 12 month period, a fee shall be charged which represents an amount not more than a maximum value, to be determined by the Commission from time to time. 

A8. The contributor has the right to move between funds depending on his or her preference. However, the Pension Fund Administrator will be responsible for implementing the movement upon receipt of a formal request from the contributor.

A9. No, your RSA balance will not change due to inter-fund transfer because the same balance at exit from the transferring fund forms the entry balance into the receiving fund at the same valuation date. However, future increase in your RSA balance would depend on contributions which include mandatory monthly contributions, voluntary contributions as well as returns generated by FCMB Pensions on that individual fund.

A10. To move from one fund type to another, you would be required to make a formal request and submit to FCMB Pensions for processing.

A11. We would advise you regarding the fund performance and indices to enable you take an informed decision.

A12. You would have the opportunity to check and update your records in our Database before the transition is carried out. 

A13. Every contributor is entitled to only one RSA PIN for all types of contributions. Hence, your Mandatory Contributions would be in the same Fund type with your Voluntary Contributions.

A14. The Mandatory and Voluntary Contributions will have the same fund price as they will be invested in the same fund type that the contributor selects.

A15. The Approved Existing Schemes (AES) are regulated by the Board of Trustees who has the right to structure the portfolios in the best interest of the beneficiaries based on approval by the National Pension Commission.

A16. Yes, the regulation does not have restriction on movements due to withdrawal of 25% provided the individual is below 50 years; he or she is allowed to switch between Fund I and Fund II.

A17. No, Fund III is mainly for active contributors who have reached 50 years and above.

A18. It is possible, however it would be at a cost if you are switching within 12 months.

A19. Yes, the prices of all funds are published and updated daily on our website. You can generate and have access to the historical prices based on date range selection as well. 

A20. No, the PFA has the responsibility of specific instruments that the Funds would be invested in as the Regulation only allows a contributor to select a Fund.

A21. The charge for moving between funds would be deducted from the RSA balance of the contributor requesting for movement.

A22. No, it is not possible because you are only identified with one PIN and cannot be allowed to have contributions in more than one fund structure at a time.

A23. There is no relationship between the transfer window and the Multi-Fund Structure. The Transfer Window permit the contributor the choice of moving his/her Retirement Savings Account from one Pension Fund Administrator to another while the multi fund permits a contributor the choice of moving from one fund to another within the same PFA.

A24. No, the documents required of Micro-Pension Contributors are not the same as Formal Sector Employees. Participants of Micro-Pension Plan will only be required to provide their National Identification Numbers, Valid Identification Card (which may be National Identification Card, Permanent Voters Card, Driver’s License, or International Passport), Evidence of Membership of a Registered Association, Union, or Cooperative Society, and Certificate of Business Registration or Incorporation. 

A25. No, it is not compulsory to contribute monthly to the RSA. The frequency of contributions is entirely in the hands of the Micro-Pension Contributor, who may decide to do so daily if he/she wishes. 

A26. No, a portion of the Contributions (40%) known as the Contingent Balance may be withdrawn at any time subject to the withdrawal frequency limits as specified in Guidelines issued by the National Pension Commission. The remaining portion (60%) will be left in the RSA to provide for the retirement stage of the life cycle.

A27. The Guidelines for Micro-Pension Plan, issued by the National Pension Commission, defines retirement age for this class of RSA holders as when the Participant makes a formal declaration to stop work, provided that he/she is not less than 50 years of age.

A28. No, the Administration Fee of N100 only applies to Formal Sector Contributors per monthly contribution. As a Micro-Pension Contributor, you will be charged a maximum Administration Fee of N20 at the end of each month where your total contributions for the month sum up to less than N4,000.00 subject to at least one contribution within the month, i.e. if there is no contribution within the month, you will not be charged Administration Fee. You shall be charged a maximum Administration Fee of N80 where your total contributions for the month sum up to N4,000 and above. 

A29. Yes, a Micro-Pension Contributor can transfer to the applicable Formal Sector Fund upon securing employment in an organization in Nigeria, as he/she is expected to have only one RSA and cannot be in two funds at the same time.

A30. The Micro-Pension Contributor will enjoy the same services as any other Contributor in the Formal Sector. The major differences are in the documentary requirements for opening of the RSA, the voluntary nature of the Micro-Pension Scheme, the Investment Portfolio Mix, the Asset Management and Administration Fee Charge, remittance source which is from the Micro-Pension Contributor himself/herself alone and not from the employer as obtains with Formal Sector, and the quantum/timing of access to the Fund via withdrawals.

A31. Yes, a Micro-Pension Contributor can transfer his/her RSA from one PFA to another, just like the Formal Sector Employees or Retirees, in line with the Regulations for the transfer of RSA issued by the National Pension Commission.

A32. The RSA Fund VI also known as Non-Interest Fund under the Multi–Fund Structure is a Fund created for contributors who would like their RSAs invested in non-interest money and capital market products.

A33. Any RSA holder can move to Fund VI based on their choice. It is optional. Active contributors in Fund I, II or III who wish to move to Active Fund VI or Retirees in Fund IV who wish to move to Retiree Fund VI, shall make a formal request to FCMB Pensions.

A34. Yes, new members to the Scheme who indicate interest can have their funds invested in the Active Fund VI.

A35. Yes the Fund is open to all faith; the funds are invested instruments in non-interest money and capital market products. Non-Interest investing offers a way of conducting financial transactions according to certain defined ethical values and parameters. It is for any Retirement Savings Account (RSA) holder interested in having their pension savings managed in an ethically conscious way which will benefit people, the economy and environment Muslims and Non-Muslims alike.

A36. The Fund VI will be invested in instruments that are free from speculation such as Shari’ah or Ethical compliance such as the Sukuk, Islamic Treasury Bills and Eurobonds issued by the Central Bank of Nigeria or Federal Government of Nigeria Agencies, Open/Closed/Hybrid Funds (including Exchange Traded Funds and Real Estate Investment Trust) and Other forms of Sukuk included in Fund VI.

A37. The investment return rate on Fund VI cannot be stated because prices tend to be unstilted and the Fund VI is a low risk fund that will be invested in the Shari’ah Compliant Infrastructure Funds‎.

A38. There is no minimum rate of investment. As long as you are a contributor and have an RSA with FCMB Pensions, you can move your fund to Fund VI.

A39. Kindly note that you can move to Fund VI by completing our Inter-Fund Transfer Instruction Form as hosted on our Website, and send to Alternatively, you may visit any of our offices close to you via and complete the form accordingly for processing.

Should you require further clarification, you can send an email to, live chat with us on or call us on 08059580002, 08032752888 or 07080633002-4.

Multi-Fund Structure; Tailored to meet everyone’s needs!