No fewer than 334,765 retirees have been paid a total of N538.118bn under the Contributory Pension Scheme as of the end of June 2018.
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This is according to figures released by the Pension Fund Operators Association of Nigeria during a seminar in Lagos.
The association disclosed that 187,000 of the beneficiaries were on programmed withdrawal; 342 retired on health ground; 51,863 were on annuity; while 95,424 were paid en bloc.
PenOp explained that the balance in a person’s Retirement Savings Account would determine the type of payment.
For instance, it stated, “Less than N550,000 will entitle the RSA holder to an en bloc payment of the Retirement Savings Account balance on retirement. Anything higher is subject to programmed withdrawal or annuity.”
Where an RSA holder is less than 50 years, PenOp explained that he could only access 25 per cent of the RSA balance.
It noted that the age at retirement was one of the variables used in calculating the programmed withdrawal and that the Pension Reform Act provided that an RSA holder must be 50 years or must have retired to access pension payments.
PenOp stated that the gender of the RSA holder would be used in calculating programmed withdrawal based on life expectancy.
It added that the last annual salary would be used in calculating the programmed withdrawal value as the payment was a factor of the RSA holder’s last salary.
Where the RSA holder has been missing for over 12 months, the next of kin can access the balance in the account after providing the required documents, according to PenOp.
However, it added that the accessibility of the missing person’s benefit would depend on the decision of the board of inquiry constituted by the National Pension Commission.
Where the RSA holder is deceased, the entire balance is paid out to the beneficiaries under a Will or Letters of Administration as a lump sum once reconciliation is concluded.
For employees who failed to register with any Pension Funds Administrator before their demise, their next of kin or representatives are expected to open death benefit accounts, which will be created and maintained by the PFAs.
Where the RSA holders have been confirmed by a medical report to be mentally or physically unfit to work, PenOp explained that the account holders under this category could access their balances either en bloc (where the balance is less than N550,000) or as a lump sum and programmed withdrawal/annuity.