PenCom approves 6,851 applications for annuity retirement plan in Q4,2017

The National Pension Commission (PenCom) says it approved 6,851 applications for annuity retirement plan in fourth quarter of 2017.

According to the commission, the number brings to 48,539, the total number of retirees receiving their retirement benefits via annuity.

The commission, in its 2017 fourth quarter report posted on its website, said the 6,851 retirees received N6.32 billion as lump sum payment while their annuity premium of N35.77 billion was paid to insurance companies

PenCom said the amount was N60.29 billion and N241.62 billion as lump sum payments and annuity premium respectively.

PenCom said the retirees were receiving average monthly annuity of N2.53 billion as at the end of December, 2017.

On retirees on Programmed Withdrawal , (PW) it said that total number of retirees currently receiving their pensions under PW increased from 165,740 in the previous quarter to 174,512 in the fourth quarter, 2017.

“This represents 5.29 per cent (8,772) increase from the total retirement recorded via the PW, “ it noted

The report said the breakdown of retirees under the PW during the quarter of 2017 showed public sector having 68.91 per cent (6,045) of the retirees and private sector, 31.09 per cent (2,727).

It showed that 8,772 retirees were paid N21.74 billion as lump sum and N0.28 billion as monthly programmed withdrawals.

According to the report, 174,512 retirees have been paid 448.90 billion as lump sum and N5.91 billion as monthly programmed withdrawals from inception of CPS to the quarter under review.

On Withdrawal of 25 per cent of Retirement Saving Account (RSA), the commission said approval was granted for payment of N6.54 billion to 17,828 RSA holders.

According to the report, RSA holders are under 50 years, disengaged from work and unable to secure another job within four months of their disengagement.

It said the cumulative total number of disengaged RSA holders who were paid 25 per cent was 250,293 and paid N82.57 billion from inception to the quarter under review.

According to the report, further analysis shows that the private sector accounts for 95.40 per cent (238,786) while the public sector accounts for 4.60 per cent (11,507).

On approval of death benefits, the commission said that it approved payments of N9.20 billion to the families of 2,028 deceased employees during the four quarter under review.

This figure, PenCom, said moved the cumulative death benefit payments to N138.90 billion, including life insurance of 44,879 of employees who died, both in private and public sectors.

“During the four quarter, the commission granted approval for the payment of N1.81 billion to 3,403 RSA holders, comprising 321 retirees, made up of federal and state organisations and 3,082 in private sector retirees.

“Cumulatively, 89,844 retirees under these categories received a total sum of N22.07 billion from inception to the end of the fourth quarter of 2017. “

On update implementation of CPS by state governments, PenCom said 27 state governments continued to make progress in the level of implementation

It added that 27 states had enacted laws on CPS so far while eight states were at the implementation stage of the CPS Bill.

It said Yobe state was, however, yet to commence the process of enacting a law on CPS.

PenCom also said that 12 out of the 36 states had commenced remittance of contributions into the RSAs of their employees .

It also revealed that eight states had commenced the funding of their retirement benefit bond redemption fund accounts.