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Chuks Udo Okonta
Annuity premium paid by retirees to life insurers as at June 2016 stood at N157.09 billion, Inspen has learnt.
The National Pension Commission (PenCom) stated this in its 2016 second quarter report. PenCom noted that it approved a total of 2511 applications for annuity plan during the quarter, adding that the figure brought the number of retirees receiving their retirement benefits through annuity plan to 32131.
PenCom stated that the 2511 retirees received N2.36 billion as lump sum payment and paid annuity premium of N12.05 billion to insurers, cumulating to a total of N44.21 billion and N157.09 as lump sum payment and annuity premium respectively.
The pension regulator said retirees were receiving average monthly annuity of N1.62 billion as at the end of June 2016.
Recall insurers have been mandated by the National Insurance Commission (NAICOM) and PenCom to open operational accounts with Pension Fund Custodians (PFCs) of their choice and transfer the fund in their kitty to the PFCs
The regulators in a joint circular, said they are currently reviewing the regulation on retiree life annuity, which will be jointly released to the public in compliance with the PRA 2014 within 3 months of this notice.
The parties also agreed to allowed all new annuity purchased or being processed to be domiciled in the dedicated account with the PFC, while the treatment of all existing retiree life annuity funds and assets, should be dealt with upon issuance of the forthcoming joint regulation.
NAICOM was enjoined to ensure that Life Insurance companies comply with the requirements, while the processing and approvals of new retiree life annuity requests shall continue forthwith.
Pension Fund Administrators (PFAs) were asked to resume the processing of new annuity requests for retirees and forward same to PenCom for necessary approval without delay, and PenCom was asked to ensure that PFAs transfer all approved premium for Retiree Life Annuity to the Operational Accounts opened by the Life Insurance Companies with PFCs
