Pension

PFAs pay N25.25bn as lump sum to retirees in second quarter 2019

Acting Director-General, PenCom, Mrs. Aisha Dahir-Umar

Leave a comment and share

Chuks Udo Okonta

Pension Fund Administrators (PFAs) paid N25.25 billion as lump sum to retirees in the second quarter of this year, Inspenonline can report.

Data obtained from the National pension Commission (PenCom) revealed that the sum of N20.57 billion was paid to 8,174 retirees as lump sum to retirees under the programmed withdrawals, while 2,941 retirees received N4.68 billion as lump sum payment under annuity.

PenCom maintained that the total number of retirees currently receiving their pensions under the Programmed Withdrawal (PW) contracts increased by 3.81 per cent from 214,538 as at the end of the first quarter of 2019 to 222,712 as at the end of the second quarter of 2019, adding that a sectorial breakdown shows that 65.75 per cent of those that received pension under the PW were from the public sector while retirees from the private sector accounted for the remaining 34.25 per cent.

It noted that during the quarter under review, the sum of N 20.57 billion was paid to 8,174 retirees as lump sum and N 355.09 million as monthly programmed withdrawals, stressing that from inception to June, the sum of N580.05 billion has been paid as lump sum and the monthly Programmed Withdrawals amounted to N9.50 billion.

The pension industry regulator posited that it approved a total of 2,941 applications for retirement under life annuity during the quarter, bringing the total number of retirees receiving their retirement benefits through the annuity plan to 68,857 from inception.

It said the 2,941 retirees received N4.68 billion as lump sum payment and paid premium of N17.53 billion to insurance companies and monthly annuity of N184.50 million, adding that this resulted in total lumps sum payment of N91.28 billion, premium of N371.21 billion and monthly annuity payments of N3.70 billion as at the end of second quarter, 2019.

One Comment

Leave a Comment

Your email address will not be published. Required fields are marked *