PenCom approved over N1.26 Trillion for PFAs to pay RSA Holders – PensionNigeria

PenCom approved over N1.26 Trillion for PFAs to pay RSA Holders

National Pension Commission (PenCom) has approved the withdrawal of over N1.26 trillion from Retirement Savings Accounts (RSAs) from inception to 31 December 2020, this was disclosed in reports recently released by PenCom.

Retirees on programmed withdrawal top the list of withdrawals from Retirement Savings Accounts (RSAs) with a total withdrawal of N726.95 billion, followed by Death Benefits N226.07 billion, 25% Withdrawal N142.78 billion, Retirees on Annuity N131.88 billion and Enbloc withdrawal N30.63 billion.

Retirees on Programmed Withdrawal

The total number of retirees currently receiving their pensions under the Programmed Withdrawal agreements with Pension Fund Administrators (PFAs) is 270,174 (FG 54.95%, State Govt 9.13% and private sector 35.91%). The sum of N715.49 billion has been paid to retirees as lump sum while N11.47 billion has been paid as monthly programmed withdrawals from inception to 31 December 2020.

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Retirees on Annuity

These are retirees who have chosen to receive their pension via annuity provided by Life Insurance companies. The total number of retirees receiving their retirement benefits through the annuity plan is 83,521 (FG 59.32%, State Govt 12.32% and private sector 28.36%). The sum of N127.26 billion has been paid as lump sum while N4.62 billion has been paid as monthly annuity pension payments to retirees on annuity plan from inception to 31 December 2020.

Retirees Enbloc Withdrawal

These are retirees whose Retirement Savings Account (RSA) balances were N550,000 or below and considered insufficient to procure a Programmed Withdrawal or Annuity of a reasonable amount over an expected life span, and the retirees were subsequently paid the total balance in their RSAs. The sum of N30.63 billion has been paid to 123,545 (FG 5.41%, State Govt 3.53% and private sector 91.06%) retirees for Enbloc withdrawal from inception to 31 December 2020.

25% Withdrawal

25% Withdrawal is a temporary access to Retirement Savings Account (RSA) for withdrawal of 25% of RSA balance for employees who were disengaged, resigned or retired from employment before the age of 50 years and were not able to secure another employment after 4 months. The sum of N142.78 billion has been paid to 378,659 (FG 2.49%, State Govt 2.59% and private sector 94.92%) RSA holders from inception to 31 December 2020.

Death Benefits

Death benefit represents payments to beneficiaries of deceased Retirement Savings Account holders. The sum of N226.07 billion was paid to 67,697 (FG 66.30%, State Govt 9.99% and private sector 23.71%) beneficiaries from inception to 31 December 2020.

Voluntary Contribution

Voluntary Contribution is an additional contribution which RSA holders can contribute voluntarily to boost the balance in their RSA. PenCom also released some details about voluntary contribution payments but the details released were only for voluntary contributions payments in the 3rd and 4th quarter of 2020. PenCom granted approval for withdrawal of the sum of N3.19 billion from the voluntary contribution of 2,210 contributors during the 3rd and 4th quarter of 2020. The figure for the total voluntary contribution withdrawals approved from inception to date is not available.

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DONT MISS PenCom Q4 Quarterly Report Series
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How PenCom monitored the Pension Industry in Q4 2020
5.1 million RSAs have Incomplete Documentation
3.5 million Unfunded RSAs, effects and way forward
Appointments to Pension Operators’ Boards in Q4 2020
PenCom issued 1,877 organizations Compliance Certificates in Q42020
19 Employers paid N170 million Penalty for late Remittance of Pension Contribution
Update on NSITF & Refund of Pension Contribution to Military & SSS
Status of Implementation of CPS in States as at December 2020
Biggest PFAs by RSA Registrations December 2020
Update on the RSA Transfer System (RTS), 2,799 RSA holders Change PFAs
Pension Operators paid N90.99 billion Retirement Benefits Q4/2020

Also Check out
Performance of all PFAs in Nigeria for Full Year 2020
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Performance of all PFAs in Nigeria for Full Year 2018

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