Pension

Insurers trail PFAs in retirement benefits business

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Pension operators

.PW 132,405 .Annuity 29,620

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Chuks Udo Okonta

Life insurance operators have continued to trail behind Pension Fund Administrators (PFAs) in retirement benefits business as retirees under Programmed Withdrawal (PW) stood at 132,405 and annuity 29,620 as at the end of March 2016.

The National Pension Commission (PenCom) said the total of retirees on PW increased from 126,775 in the fourth quarter, 2015 to 132,405 in the first quarter 2016, adding that the 5630 increase represented 4.44 per cent from the figure recorded in the previous quarter.

It noted that a sectoral breakdown of those retired under the PW showed that the public sector accounted for 71.74 per cent (4,039) of the total retirees on PW during the quarter, while the private sector recorded 28.28 per cent totaling 1,591 retirees.

PenCom noted that the lump sum withdrawals within the quarter stood at N12.63 billion, which cumulatively amounted to N329.38 billion from inception. It said an average of N4.36 billion was paid monthly to the retirees of the scheme as monthly PW as at the end of the reporting period.

The commission said it approved a total of 3,288 applications for annuity retirement plan during the quarter, bringing the total number of retirees receiving their retirement benefits through annuity plan to 29,620.

PenCom maintained that the 3,288 retirees received N3.96 billion as lump sum payment and paid annuity premium of N15.44 billion cumulating to a total of N41.85 billion and N145.05 billion as lump sum payment and annuity premium respectively.

The retirees, it said were receiving average monthly annuity of N1.51 billion as at the end of March 2016.

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