Pension Details how Over 2,000 Retired Nigerian Workers Were Cut Off from Monthly Pension Over N500,000 Rule

Pension Details how Over 2,000 Retired Nigerian Workers Were Cut Off from Monthly Pension Over N500,000 Rule

  • Some Nigerian workers will have to live by what they have saved as their pension account failed to meet the regulatory standard
  • The number of workers according to the National Pension Commission is over 2,000 from both the public and private
  • There are currently over 9.67 million pension accounts in the country with a pension fund value at N34.11 trillion

More than 2,084 retirees who can no longer receive monthly pension payments and who left the Contributory Pension Scheme in the first quarter of 2022 were announced by the National Pension Commission.

The National Pension Commission disclosed this in its first quarterly report on ‘Enbloc Payment of Retirement Benefits.

It noted that the affected workers retired have less than N550,000 in their Retirement Savings Accounts with their respective Pension Fund Administrators.

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Nigerian workers pension
Aisha Dahir-Umar, Director General pf the National Pension Commission (PENCOM) Credit Pencom
Source: UGC

They had, therefore, been refunded all their contributions to the scheme, the Punch reports.

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PenCom’s report stated that,

“During the quarter under review, the commission approved en bloc payment of retirement benefits to 2,084 retirees whose RSA balances were N550,000 or below and considered insufficient to procure programmed withdrawal or retiree life annuity of a reasonable amount for an expected life span.
“In this regard, a total sum of N519.51m was paid to the 2,084 retirees from both the public and private sectors.”

What the act says on pension

Programmed withdrawal is the monthly pensions paid by the PFAs while the annuity is monthly pensions paid by life insurance companies to retirees under the CPS.

According to the Pension Reform Act 2014, any worker with less than N550, 000 is expected to be given the total balance in the RSA by the PFA and subsequently allowed to quit the pension scheme.

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PenCom decried the attitude of companies deducting monthly contributions from their workers’ emoluments but failing to remit such to the workers’ RSAs in their respective PFAs.

FG releases names of 19,847 companies that can apply for its contract in 2022

In another report, the Federal Government has produced a list of 19,847 Nigerian firms eligible to bid on contracts in ministries.

The list was produced based on companies' compliance with employee pensions and insurance.

The companies listed are from media to health and agriculture, and banks among several others


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