Worrisome reports reaching our news desk from the National Pension Commission (PenCom) has it that no fewer than 2,084 retirees cannot be placed on monthly pension payments and have left the Contributory Pension Scheme in the first quarter of 2022.
The National Pension Commission disclosed this in its first quarterly report on ‘Enbloc Payment of Retirement Benefits, saying that the affected workers retired with less than N550,000 in their Retirement Savings Accounts with their respective Pension Fund Administrators. They had, therefore, been refunded all their contributions into the scheme, it added.
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.”
Programmed withdrawal is the monthly pensions paid by the PFAs while 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.
