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48, 539 retirees now receive benefits by annuity retirement plan

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By Victor Ahiuma-Young

NO fewer than48,539,  retirees  are now receiving their retirement benefits through the annuity retirement plan, the National Pension Commission, PenCom, has announced.

The figure rose after PenCom approved 6,851 applications for annuity retirement plan in fourth quarter of 2017.

The commission, in its 2017 fourth quarter report posted on its website, said the 6,851 retirees received N6.32 billion as lump sum payment while their annuity premium of N35.77 billion was paid to insurance companies

According to PenCom, the amount was  N60.29 billion and N241.62 billion as lump sum payments and annuity premium respectively, saying the retirees were receiving average monthly annuity of N2.53 billion as at the end of December, 2017.

On retirees on Programmed Withdrawal, PW, it said total number of retirees receiving their pensions under   PW   increased from 165,740 in the previous quarter to 174,512 in the fourth quarter, 2017.

“This represents 5.29 per cent (8,772) increase from the total retirement recorded via the PW, “it noted

The report said the breakdown of retirees under the PW during the quarter of 2017 showed public sector having 68.91 per cent (6,045) of the retirees and private sector, 31.09 per cent (2,727).

It showed that   8,772 retirees were paid N21.74 billion as lump sum and N0.28 billion as monthly programmed withdrawals.

According to the report, 174,512 retirees have been paid 448.90 billion as lump sum and N5.91 billion as monthly programmed withdrawals from inception of CPS to the quarter under review.

On Withdrawal of 25 per cent of Retirement Saving Account, RSA,, the commission said approval was granted for payment of N6.54 billion to 17,828 RSA holders, noting that “RSA holders are under  50 years, disengaged from work and unable to secure another job within four months of their disengagement. The cumulative total number of disengaged RSA holders who were paid 25 per cent was 250,293 and paid N82.57 billion from inception to the quarter under review.”

Further analysis of the report shows that the private sector accounts for 95.40 per cent (238,786) while the public sector accounts for 4.60 per cent (11,507).

On approval of death benefits, the commission said that it approved payments of N9.20 billion to   the families of 2,028 deceased employees during the four quarter under review.

This figure, PenCom, said moved the cumulative death benefit payments to N138.90 billion, including life insurance of 44,879 of employees who died, both in private and public sectors, informing that “during the four quarter, the commission granted approval for the payment of N1.81 billion to 3,403 RSA holders, comprising 321 retirees, made up of federal and state organisations and 3,082 in private sector retirees.  Cumulatively, 89,844 retirees under these categories received a total sum of N22.07 billion from inception to the end of the fourth quarter of 2017.”

On update implementation of Contributory Pension Scheme, CPS  by state governments, PenCom said   27 state governments  continued to make progress in the level of implementation

It explained that 27 states had enacted laws on CPS so far while eight  states were at the   implementation stage of   the CPS Bill, saying Yobe State  was yet to commence the process of enacting a law on CPS.

PenCom also said that 12 out of the 36 states had commenced remittance of contributions into the RSAs of their employees, adding that eight states had  commenced the funding of their retirement benefit bond redemption fund accounts.

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