INSUFFICIENT FUNDS: Retires resort to enbloc payment from RSA
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More retirees under the Contributory Pension Scheme, CPS, are receiving enbloc payments at retirement due to insufficient balance in their Retirement Savings Accounts, RSAs.Enbloc payments are made to retirees when their RSA balances could not provide a monthly pension of at least one-third of the prevailing minimum wage of N30,000.
Vanguard investigations from National Pension Commission, PenCom, report show that the number of retirees given enbloc payment in the first half of 2024, H1’24, increased by 1.4 per cent to 7167 retirees from 7067 retirees recorded in the second half of 2023, H2’23.
Further breakdown show that a total of N4.85 billion was paid to the retirees in H1’24 indicating an increase of 7.8 per cent from N4.50 billion paid out H2’23.
The report stated: “The Commission received requests from retirees for enbloc payments during the period. Out of the requests, 7167 retirees’ requests were approved as their RSA balances could not provide a monthly pension of at least one-third of the prevailing minimum wage (N30,000.00).”
On retirement by programmed withdrawal, the report stated: “The Pension Fund Administrators, PFAs, submitted 7,494 requests for retirees to draw pension through Programmed Withdrawal mode in Q2’24. The Commission approved 7,473 requests, while 23 were rejected due to wrong computations of lump sum or monthly pensions. Out of the 7,471 retirees whose benefits were approved, 3,161 were from the private sector, while 4,314 were from the public sector. A lump sum of N39.05 billion was approved for the 7,473 retirees, while their monthly pension was N553.58 million.”
On retirement by Retiree Life Annuity, the report stated: “The PFAs submitted 5,312 requests from retirees to receive pension through Retiree Life Annuity (RLA) mode during the quarter under review. Out of that, 5,304 requests were approved, while eight were rejected due to incorrect computations. Out of the 5,304 retirees whose benefits were approved, 1,771 were from the private sector, while the remaining 3,533 were from the public sector.
A lump sum of N18.67 billion was approved for the 5,304 retirees, while N22.6 billion was paid to RLA providers for their monthly annuity payment of N539.93 million.”
INSUFFICIENT FUNDS: Retires resort to enbloc payment from RSA - Vanguard News (vanguardngr.com)
