PenCom approved over N1.46 Trillion for PFAs to pay RSA Holders as at Dec 2021

National Pension Commission (PenCom) has approved the withdrawal of over N1.46 trillion from Retirement Savings Accounts (RSAs) from inception to 31 December 2021, this was disclosed in the 2021 Annual Reports recently released by PenCom.

Retirees on programmed withdrawal top the list of withdrawals from Retirement Savings Accounts (RSAs) with a total withdrawal of N822.22 billion, followed by Death Benefits N268.72 billion, Retirees on Annuity N162.20 billion, 25% Withdrawal N160.73 billion, Enbloc withdrawal N32.66 billion and Voluntary Contribution N8.59 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 296,986 (FG 50.92%, State Govt 10.26% and private sector 38.81%). The sum of N809.46 billion has been paid to retirees as lump sum while N12.76 billion has been paid as monthly programmed withdrawals from inception to 31 December 2021.

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 92,788 (FG 56.02%, State Govt 12.20% and private sector 31.78%). The sum of N156.97 billion has been paid as lump sum while N5.23 billion has been paid as monthly annuity pension payments to retirees on annuity plan from inception to 31 December 2021.

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 N32.66 billion has been paid to 129,935 (FG 5.51%, State Govt 3.11% and private sector 91.38%) retirees for Enbloc withdrawal from inception to 31 December 2021.

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 N160.73 billion has been paid to 412,979 (FG 2.85%, State Govt 1.88% and private sector 95.28%) RSA holders from inception to 31 December 2021.

Death Benefits

Death benefit represents payments to beneficiaries of deceased Retirement Savings Account holders. The sum of N268.72 billion was paid to 75,979 (FG 65.21%, State Govt 10.19% and private sector 24.60%) beneficiaries from inception to 31 December 2021.

Voluntary Contribution

Voluntary Contribution is an additional contribution which RSA holders can contribute voluntarily to boost the balance in their RSA. PenCom did not release details of voluntary contribution payments from inception to date in its 2021 annual report but based on details released in PenCom quarterly reports, we have figures for voluntary contributions payments from July 2020 to 31 December 2021. PenCom quarterly reports reveal that PenCom has granted approval for withdrawal of the sum of N8.59 billion from the voluntary contribution of 5,281 contributors (public sector 14.39% and private sector 85.61%) from July 2020 to 31 December 2021. The figure for the total voluntary contribution withdrawals approved by PenCom from inception to date is not available.

Checkout PensionNigeria breakdown of important aspects of the PenCom 2021 Annual Report

PenCom 2021 Annual Report Breakdown

Chairman’s Statement in PenCom 2021 Annual Report
Director General’s Report in PenCom 2021 Annual Report
Analysis of Pension Operating Environment for the Year 2021
Micro Pension Registrations per PFA as at Dec 2021 and Fastest Growing PFAs by Micro Pension Registrations
Update on the Micro Pension Plan for Year 2021
N93.49 Billion Pension Contributions not in Contributors Retirement Savings Account
Defaulting Employers pay Penalties of N10.03 billion into Employees RSA as PenCom takes 67 Employers to Court
Redacted Reports – Unfunded RSAs and RSAs with Incomplete Documentation
PTAD paid N99.94 billion to Federal Government Retirees in 2021
PenCom Stakeholder Engagement and Public Enlightenment Activities in 2021
Biggest PFAs by RSA Pension Fund Assets under Management & Fastest Growing PFAs in 2021
Update on Implementation of Minimum Pension Guarantee
PenCom provides Scanty Update on using RSA for Payment of Residential Mortgage
PenCom approved over N1.46 Trillion for PFAs to pay RSA Holders
PFAs made over N340.57 Billion Total Income in 3 years

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