PenCom, PFAs pay N10.6b to 25,629 out- of-job contributor 

Disengaged workers numbering 25,629 have claimed 25 per cent of their pension fund to the tune of N10.62 billion between January and June, 2018. This was shown in a report by the National Pension Commission (PenCom).

The workers were paid by their respective Pension Fund Administrators (PFAs) with PenCom approval.

They were under the Contributory Pension Scheme (CPS) as Retirement Savings Account (RSA) holders, under the age of 50 years and unable to secure another job within four months of their disengagement. The payment is backed by Pension Reform Act (PRA) 2004 as repealed by PRA 2014.

A breakdown of the payment showed that 12,857 of the disengaged workers claimed 25 per cent of their pension fund in the second quarter of 2018, receiving N5.65 billion from their respective PFAs in the period under review.

A further analysis of the report showed that the private sector accounted for 95.60 per cent of those who benefitted from the payments, while the public sector accounted for 4.40 per cent.

The report read: “Withdrawal of 25 per cent of RSA balances approval was granted for payment of N5.65 billion to 12,857 RSA holders, who were under the age of 50 years and were disengaged from work and unable to secure another job within four months of disengagement.

“The cumulative total number of RSA holders, who were paid 25 percent for temporary loss of job was 275,950. They received N93.19 billion being the 25 per cent of the balances of their Retirement Savings Account as prescribed by the Pension Reform Act 2014.

The report also showed that approval was granted for payment of N4.97 billion to 12,772 RSA holders, who were out of job in the first quarter of 2018.

“The cumulative total number of disengaged RSA holders, who were paid 25 per cent was 263,093 and were paid N87.54 billion from inception to the first quarter under review.

“The private sector, however, accounted for 95.60 per cent, while the public sector accounted for 4.40 percent.”

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