Pension

Disengaged junior workers get lion share of N49.55bn pension benefits

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DG PenCom, Mrs Chinelo Anohu-Amazu

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Chuks Udo Okonta

Greater parts of the N49.55 billion pension benefits paid by Pension Fund Administrators (PFAs) to disengaged workers went to junior staff, Inspen has learnt.

The National Pension Commission (PenCom) said since the inception of the Contributory Pension Scheme (CPS), N49.55 billion has been paid to 159,361 disengaged Nigerian workers who could not secure a new job after four months.

PenCom stated this in its 2016 first quarter review, stressing that in the first quarter of this year, it granted approval for the payment of N3.32 billion to 10,481 Retirement Savings Account (RSA) holders under the age of 50 years who were disengaged and were unable to secure another job within four months disengagement.

The commission noted that the private sector accounted for 95.55 per cent (152,262) of the disengaged RSA holders, who received a total of N49.55 billion being 25 per cent of their RSA balances as at the time they were disengage.

The regulator said during the quarter under review, 270 of the disengaged workers were the federal government employment; 282 from the states and 9929 from the private sector amounting to 10,481 workers and payment of N3.32 billion.

The Managing Director, IEI-Anchor Pension Managers Limited, Glory Etaduovie, said disengaged junior staff who are unable to secure a new job after four months approach pension fund administrators for 25 per cent of their savings, adding that most senior staff retain their funds till retirement.

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