House of Representatives is allegedly proposing to increase the amount a person can withdraw from his/her retirement savings accounts (RSA), at retirement or disengagement from service, from 25% to 75%.
This is proposed in the Pension Reform (Amendment) Bill, 2020, sponsored by a member of the House from Ogun State, Mr Jimoh Aremu, which is awaiting second reading.
The representative in the explanatory memorandum on the proposal, said, “This bill seeks to amend Sections 1(c), 7(2), 8(1), 18, 24, and 99 of the Pension Reform Act Cap P50 LFN 2014, by providing that a pensioner shall receive at least 75 percent of his (or her) retirement benefits immediately upon retirement and criminalise the undue delay in the payment of pension.”
The bill proposes an amendment to Section 1(c) of the Act by deleting “receives his retirement benefits as and when due” and replacing it with “receives at least 75 per cent of his retirement benefits immediately upon retirement or disengagement.”
The amended section will now read, “(c) …ensure that person who worked in either the public service of the federation, Federal Capital Territory, states and local government or the private sector receives at least 75 per cent of his retirement benefits upon retirement, disengages or is disengaged.
Section 7(2) will now read, “Where an employee voluntarily retires, disengages or is disengaged from employment as provided for under Section 16 (2) and (5) of this Act, the employee may, with the approval of the commission, withdraw an amount of money not exceeding 75 per cent of the total amount credited to his retirement savings account.”
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