For the first time under the Contributory Pension Scheme, workers in active service will soon be allowed to withdraw 25 per cent of the balance in their Retirement Savings Account as collateral for mortgage loan before they reach retirement age.
This was contained in the draft guidelines on withdrawals from the RSA, a copy, which was obtained by our correspondent from the National Pension Commission on Friday.
The date for the commencement of such withdrawals by workers would soon be announced, it was learnt.
According to the draft guidelines, such workers will, however, forfeit the lump sum payment and shall only be entitled to a monthly pension payment when they retire.
Section 3.5 of the draft guidelines states that an eligible RSA holder shall be allowed to access a maximum of 25 per cent of the RSA balance as equity contribution for a mortgage loan.
Section 3.4 also states that a RSA holder that has utilised a portion of the RSA balance as equity contribution for residential mortgage may not be entitled to a lump sum payment at retirement.
