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Chuks Udo Okonta
The total premium from Retiree Life Annuity (RLA) transferred to insurance companies from inception of the Contributory Pension Scheme (CPS) to December, 31, 2020 stood at N464.53 billion, the National Pension Commission (PenCom) has said.
PenCom stated this in a report obtained by Inspenonline, adding that the total number of retirees on annuity increased from 74,805 in 2019 to 83,568 in 2020 and that the breakdown of the total number of retirees showed that the FGN retirees accounted for 49,368 (59.07 per cent), the States retirees accounted for 10,494 (12.56 per cent) while the private sector retirees accounted for 23,706 (28.3 per cent).
It submitted that the cumulative monthly annuity being received by retirees from inception to December 31, 2020 was N4.62 billion, after the receipt of cumulative lump sum of N127.62 billion and that the total premium transferred to insurance companies from inception to December, 31, 2020 stood at N464.53 billion.
The pension sector regulator said in 2020, 8,763 retirees who opted for Life Annuity received a total sum of N25.92 billion as lump sum while a total sum of N57.22 billion was paid as premium to insurance companies in exchange for monthly Annuity receipts of N540 million.
PenCom maintained that in the second quarter of 2021, it granted approval to 1,708 retirees under the Retiree Life Annuity, adding that the total lump sum of N4,586.16 million was approved for payment to the retirees, while the sum of N12,346.89 million was approved for payment to 14 Retiree Life Annuity Providers as premium in return for total monthly/quarterly annuities of N122.46 million.
To ensure life insurance companies fully maximize opportunities in the retiree life annuity space, the National Insurance Commission (NAICOM) is rallying insurers to boost annuity business.
To this end, NAICOM had asked insurance companies to share information on issues they are facing while underwriting annuity so as to deepen the annuity market space in the county and bring more clients to the industry.
