Centre for Pension Right Advocacy, applauds PenCom & NAICOM over new rules on Retiree Life Annuity

The Executive Director of the Centre For Pension Right Advocacy, Ivor Takor, has applauded the steps taken by the National Insurance Commission (NAICOM) and National Pension Commission (PenCom) in addressing the challenges surrounding the marketing of Retiree Life Annuity (RLA) and Programmed Withdrawal (PW).

Takor said “As a member of the Fola Adeola-led Pension Reform Committee, whose work ushered in the Contributory Pension Scheme (CPS) through the Pension Reform Act 2004, I was quietly happy that Annuity was being sold to employees as it will give them an option, which was the spirit behind the provisions of Section 7(1) (b) and (c).”

“However, I was very worried about the misinformation the marketers were dishing out with regards to the lifespan of programmed withdrawal. We were being told that PW ends after 15 years. How they arrived at that conclusion, I don’t know except that it was strategy to de-market PW. This discussion will not delve into the high and low points of either PW or RLA,” he said.

Takor told Inspenonline that the steps taken by the two regulators will help strengthen and promote both businesses.

Also Read PenCom and NAICOM Sign off Regulation on Retiree Life Annuity and Guidelines on Group Life Insurance Policy for Employees 

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