Pension Operators paid N90.99 billion Retirement Benefits Q4/2020
The National Pension Commission (PenCom) has disclosed that a total of N90.99 billion was paid as retirement benefits in the 4th quarter of 2020. This shows a decrease of N13.13 billion when compared to the N104.12 billion paid in the 3rd quarter of 2020.
Out of the N90.99 billion, a total of N57.46 billion was paid by Pension Fund Administrators (PFAs) to Retirement Savings Account (RSA) holders. Though PenCom did not disclose it but it’s expected that the balance was paid to retirees under existing Schemes with PFAs, retirees with Closed Pension Fund Administrators (CPFAs) and retirees under the old pension Scheme with Pension Transitional Arrangement (PTAD).
Out of the N57.46 billion paid by PFAs to RSA holders, Retirees on Programmed Withdrawal top the list of withdrawals from RSAs with a total withdrawal of N33.09 billion, followed by Death Benefits N10.79 billion, Retirees on Annuity N6.39 billion, 25% withdrawal N5.33 billion, Voluntary Contributions withdrawal N1.01 billion and Enbloc withdrawal N848.92.
Retirees on Programmed Withdrawal
The total number of retirees who opted to receive their pensions under the Programmed Withdrawal agreements with Pension Fund Administrators (PFAs) in the 4th quarter of 2020 was 11,374 (FG 3,949, State Govt 1,732 and private sector 5,693). The sum of N32.63 billion was paid to retirees as lump sum while N455.49 million was paid as monthly programmed withdrawals, making a total of N33.09 billion to retirees on programmed withdrawals during the 4th quarter of 2020.
Support PensionNigeria
Support PensionNigeria financially with N1,000 per Month HERE, or with any amount ONCE (One Time Only) HERE
Empower us to do more independent analysis of the Pension Industry in Nigeria
Be the First to Know – Follow PensionNigeria WhatsApp Channel
Its Free – Click here to follow our WhatsApp Channel
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 who received their retirement benefits through the annuity plan in the 4th quarter of 2020 was 1,596 (FG 669, State Govt 140 and private sector 787). The sum of N6.28 billion was paid as lump sum while N111.68 million was paid as monthly annuity pension payments, making a total of N6.39 billion to retirees on annuity plan during the 4th quarter of 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 Plan for a reasonable amount over an expected life span, and the retirees were subsequently paid the total balance in their RSAs. The sum of N848.92 million was paid to 3,499 retirees (FG 41, State Govt 159 and private sector 3,299), as Enbloc payments during the 4th quarter of 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 N5.33 billion was paid to 11,796 RSA holders as (FG 181, State Govt 624 and private sector 10,991) 25% Withdrawal payments during the 4th quarter of 2020.
Death Benefits
Death benefits represents payments to beneficiaries of deceased Retirement Savings Account holders. The sum of N10.79 billion was paid to 2,278 (FG 1,150, State Govt 432 and private sector 696) as death benefits payments during the 4th quarter of 2020.
Voluntary Contribution
A voluntary contribution is an additional contribution made by a RSA holder. A RSA holder making voluntary contributions can withdraw 50% of the voluntary contribution (per contribution) made into his RSA after 2 years of such contribution, and the balance of 50% shall be available for withdrawal upon retirement of the contributor from active employment. The sum of N1.01 billion was paid to 924 RSA holders (FG 1, State Govt 0 and private sector 923) as voluntary contribution payments during the 4th quarter of 2020.
Check below for PensionNigeria breakdown of all the important aspects of the PenCom 4th Quarter 2020 Report
Support PensionNigeria
Support PensionNigeria financially with N1,000 per Month HERE, or with any amount ONCE (One Time Only) HERE
Empower us to do more independent analysis of the Pension Industry in Nigeria
Be the First to Know – Follow PensionNigeria WhatsApp Channel
Its Free – Click here to follow our WhatsApp Channel
DONT MISS PenCom Q42020 Quarterly Report Series
Analysis of Pension Operating Environment Q4 2020
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
Performance of all PFAs in Nigeria for Full Year 2019
Performance of all PFAs in Nigeria for Full Year 2018
Be the First to Know – Follow PensionNigeria WhatsApp Channel Its Free – Click here to follow our WhatsApp Channel
Support PensionNigeria
Support PensionNigeria financially with N1,000 per Month HERE, or with any amount ONCE (One Time Only) HERE
Empower us to do more independent analysis of the Pension Industry in Nigeria
Be the First to Know – Follow PensionNigeria WhatsApp Channel
Its Free – Click here to follow our WhatsApp Channel
Don’t Miss Anything Subscribe to PensionNigeria Newsletter on Substack
Once you Subscribe, we immediately send you an Email.
Please check your Inbox and SPAM folder.
If the Email is in your SPAM folder, kindly move it to your Inbox and add pensionnigeria@substack.com to your address book or contacts.
If you have subscribed before and you still do not receive our Newsletter,
please check your “Spam Folder”, if you find our Newsletter there, mark it as “NOT SPAM” or move it to your Inbox
Check here for Recent PensionNigeria Newsletter
Follow PensionNigeria on Social Media
Like our Facebook Page
Follow us on Twitter, Instagram & LinkedIn
Subscribe to our Channel on YouTube
Grow Your Personal Investment with Stanbic IBTC Asset Management
Pension is Your Right,
An Insurance for Old Age
Follow PensionNigeria on Social Media LinkedIn Twitter Instagram Facebook YouTube