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Chuks Udo Okonta
At a time most Nigerians earning regular income, are surviving by God’s grace due to harsh economic situation, 4,059 workers in the first quarter 2023, retired and wouldn’t be paid monthly pension benefits because their Retirement Savings Account (RSA) balances could not provide a monthly pension of at least one third of the prevailing minimum wage N30,000.00.
The National Pension Commission (PenCom) had said where the fixed portion of Retirement Savings Account (RSA) balance cannot procure monthly pension/annuity up to one third of the prevailing national minimum wage, the contributor shall receive their benefits en bloc.
PenCom in a report noted that in the first quarter 2023, approval was granted for en bloc payment of retirement benefits to 4,059 retirees, which totalled N2,544.91 million, stressing that these were retirees whose RSA balances could not provide a monthly pension of at least one third of the N30,000 mini
mum wage.
PenCom also submitted that it granted approval for the payment of N12,717.90 million been 25 per cent of their RSA balances to 13,126 RSA holders under the age of 50 years, who were disengaged from employment and unable to secure another job within four months.
Experts have advised that to stop pushing retirees into hard times in retirement where they live without monthly pension benefits, the law on minimum wage should be obeyed by all employers.
They also enjoined employers to ensure all workers pension contributions are remitted according to stipulated rules.
The workers were encouraged not to deplete their RSA by accessing 25 per cent out of job benefits; 25 per cent pension residential mortgage withdrawal and should embrace voluntarily pension contributions.
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