RateCaptain
  • FX Rates
  • Commodities
  • Money Market
  • Cryptocurrency
  • Corporates
  • Contact Us
No Result
View All Result
Subscribe
  • FX Rates
  • Commodities
  • Money Market
  • Cryptocurrency
  • Corporates
  • Contact Us
No Result
View All Result
Rate Captain
No Result
View All Result
Home News

PENCOM introduces lumpsum payment to retirees with insufficient RSA balance

Rate Captain by Rate Captain
May 11, 2022
in News
Reading Time: 3 mins read
A A
0
PENCOM introduces lumpsum payment to retirees with insufficient RSA balance
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

The National Pension Commission (PenCom), has made a new provision of a lumpsum payment (bulk settlement) to retirees with insufficient Retirement Savings Account (RSA) balances, to address some of the issues of low monthly pensions.

Specifically, the provision allows the Pension Fund Administrators (PFA) to pay a retiree the entire sum, where the RSA balance cannot provide a monthly/quarterly pension or annuity of at least one third of the prevailing minimum wage.

AlsoRead

“The Tin Can Island Port is deteriorating” – Mohammed Bello-Koko

Twitter Acquisition deal temporarily on hold, Says Elon Musk

Emirates Airlines announced the adoption of Bitcoin as a Payment alternative

Prior to this provision, lumpsum payments were pegged at a specific monetary threshold. However, this has become inadequate due to varying economic realities. The new provision according to PenCom would address the dynamic economic circumstances as indicated by the National Minimum Wage.

It further buttresses PenCom’s efforts at ensuring that retirees receive meaningful periodic pensions under the Contributory Pension Scheme (CPS).

Following its recent revised Regulation on Retirement and Terminal Benefits which it noted is for immediate implementation, the Commission said the new provision on Pension Enhancement for retirees under the programmed withdrawal (PW) mode was introduced in the Revised Regulation that imbeds PenCom’s commitment to boosting the monthly pension of retirees.

It further noted that the Revised Regulation made new provisions to address issues on the payment of benefits to Micro Pension Plan (MPP) contributors, noting that the payment of the contingent and fixed portions of the contributions under the MPP, shall be in line with the guidelines on the Micro Pension Plan, issued by PenCom.

However, for the purpose of accessing the fixed portion of the MPP contribution, the MPP contributor must not be less than 50 years of age.

Also, the revised regulation provides that where an employee is missing, the employer or next of kin/legal beneficiary of the missing person shall notify the PFA of the disappearance after a minimum period of 12 months with proper identification.

Where the PFA is satisfied with the identity of the next of kin/legal beneficiary, then documentation and verification shall commence and upon receipt of the Missing Person Notification Report and copies of the supporting documents, PenCom shall, within 10 working days, constitute a Board of Inquiry (BOI) with members drawn from the Commission, Police Criminal Investigation Department and other key stakeholders.

“If the BOI decides that the pension contributor is actually missing, then the process of benefits payment to the person’s next of kin/legal beneficiary will commence.

“It has been observed that some RSA holders who had been reported dead and all benefits paid to their legal beneficiaries, reappear after additional amounts are remitted into their RSAs. The Revised Regulation provides that where an RSA holder is reported dead, the PFA shall write to the bank of the deceased informing it of the demise and advising that the deceased’s bank account/BVN be flagged off.

According to the Commission, to address the challenges faced by employees who wish to access their Nigeria Social Insurance Trust Fund (NSITF) contributions, the Revised Regulation established conditions applicable to retirees from the private sector with NSITF benefits, which NSITF transferred at the implementation of the CPS.

It provides that any employee who retires and has NSITF contributions shall notify the PFA of his/her intention to withdraw the NSITF contributions. A PFA shall request the retiree to provide necessary documents and application to access the NSITF part of the RSA balance. A PFA shall forward all requests to access the Pre-Act portion of the RSA balance to the Commission for no-objection.

Keynotes

Recall that the maiden Pension Enhancement was conducted in December 2017, sequel to an analysis of the balances in the RSAs of retirees receiving pensions under the Programmed Withdrawal (PW) mode.

The balances of the RSAs of most retirees were used to increase their monthly pensions.

According to PenCom, the maiden Pension Enhancement resulted in increased monthly pensions for 64,076 retirees.

The second enhancement was conducted in February 2020, which resulted in enhanced pensions for 86,108 retirees.

“The revised Regulation has provided that there shall be a periodic pension enhancement for retirees on Programmed Withdrawal based on the Return on Investment of funds in the RSA and the Commission’s directive.

“Retirees with a minimum of five per cent growth in their RSAs, from the date of initial programming or their last enhancement date, shall be entitled to receive enhanced pensions.”

PFAs have been mandated to review the retirees’ RSA balances at periodic intervals in order to determine eligibility for enhancement, as may be directed or specified by PenCom.

“A Pension Enhancement template has been provided for the purpose of re-computation of the enhanced monthly or quarterly pensions to guide the PFAs accordingly,” a statement from the Pencom read in part.

 

Previous Post

Bank of Canada turns to interest rate guidance amidst increased inflationary pressures

Next Post

JPMorgan cuts Nigeria from its ‘overweight’ emerging market sovereign recommendations.

Related News

“The Tin Can Island Port is deteriorating” – Mohammed Bello-Koko

“The Tin Can Island Port is deteriorating” – Mohammed Bello-Koko

by Rate Captain
May 16, 2022
0

The Nigerian Ports Authority has announced the  deteriorating state of the Tin Can Island port, saying that more attention should...

Twitter Acquisition deal temporarily on hold, Says Elon Musk

by Rate Captain
May 13, 2022
0

Elon Musk has announced that his $44 billion deal to acquire Twitter is now on hold. This is coming after...

Emirates Airlines announced the adoption of Bitcoin as a Payment alternative

Emirates Airlines announced the adoption of Bitcoin as a Payment alternative

by Rate Captain
May 13, 2022
0

One of the United Arab Emirates (UAE) leading airlines, Emirates Airlines has announced the adoption of Bitcoin as a payment...

After the alleged claim of not being aware of the strike, President Buhari begs ASUU to call off the strike!

After the alleged claim of not being aware of the strike, President Buhari begs ASUU to call off the strike!

by Rate Captain
May 12, 2022
0

President Muhammadu Buhari has appealed to the Academic Staff Union of Universities (ASUU), to consider the plight of the students...

Next Post
Investment Bank, JP Morgan predicts Foreign Exchange Rates from 2022-2023

JPMorgan cuts Nigeria from its ‘overweight’ emerging market sovereign recommendations.

Leave a Reply Cancel reply

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

Recommended

MOMAN Debunks Rumor of Aviation Fuel Selling at N700 per Litre

Oil Marketers, Airlines reach loggerheads over local Aviation Price

May 20, 2022

Naira Depreciates at all Markets: Naira Hits N610/$1 at B2B Market

May 20, 2022

Popular Story

  • Sterling Bank to face sanctions by APCON over provocative Easter Message “Likening Christ resurrection with Agege Bread”

    Sterling Bank to face sanctions by APCON over provocative Easter Message “Likening Christ resurrection with Agege Bread”

    0 shares
    Share 0 Tweet 0
Rate Captain

RateCaptain

We bring you the most accurate in new and market data. Check our landing page for details.

  • FX Rates
  • Commodities
  • Money Market
  • Cryptocurrency
  • Corporates
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

No Result
View All Result
  • FX Rates
  • Commodities
  • Money Market
  • Cryptocurrency
  • Corporates
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.