RSA Holders Withdraw over N1.2 Trillion Q3 2020 – PensionNigeria

RSA Holders Withdraw over N1.2 Trillion Q3 2020

National Pension Commission (PenCom) has approved the withdrawal of over N1.20 trillion from Retirement Savings Accounts (RSAs) from inception to 30 September 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 N693.87 billion, followed by Death Benefits N215.28 billion, 25% Withdrawal N137.45 billion, Retirees on Annuity N125.49 billion and Enbloc withdrawal N29.78 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 258,800 (FG 55.84%, State Govt 8.87% and private sector 35.29%). The sum of N682.86 billion has been paid to retirees as lump sum while N11.01 billion has been paid as monthly programmed withdrawals from inception to 30 September 2020.

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 81,925 (FG 59.66%, State Govt 12.39% and private sector 27.95%). The sum of N120.98 billion has been paid as lump sum while N4.51 billion has been paid as monthly annuity pension payments to retirees on annuity plan.

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 N29.78 billion has been paid to 120,046 (FG 5.53%, State Govt 3.50% and private sector 90.97%).

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 N137.45 billion has been paid to 366,863 (FG 2.52%, State Govt 2.50% and private sector 94.98%).

Death Benefits

Death benefits represents payments to beneficiaries of deceased Retirement Savings Account holders. The sum of N215.28 billion was paid to 65,419 (FG 66.85%, State Govt 9.67% and private sector 23.47%).

Voluntary Contribution

PenCom also for the first time disclosed the total amount approved for Voluntary Contribution withdrawal during the 3rd quarter of 2020. PenCom stated that it granted approval for withdrawal of the sum of N2.18 billion from the voluntary contribution accounts of 1,286 contributors during the 3rd quarter of 2020. The figure for the total voluntary contribution approved from inception to date is not available.

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