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Disengaged workers collect N50bn in new pension scheme

No fewer than 159,361 disengaged Nigerian workers were paid N49.55 billion pension entitlement after they were unable to secure a new job, four months after their disengagement.

The aforementioned amount was paid to the beneficiaries since the inception of the Contributory Pension Scheme (CPS) till the end of the first quarter, 2016.

The National Pension Commission (PenCom), who stated this in its 2016 first quarter review, noted that in the first quarter of this year, it granted approval for the payment of N3.32 billion to 10,481 Retirement Savings Account (RSA) holders under the age of 50 years who were disengaged and were unable to secure another job within four months of disengagement.

The commission noted that the private sector accounted for 95.55 per cent (152,262) of the disengaged RSA holders, who received a total of N49.55 billion being 25 per cent of their RSA balances as at the time they were disengaged.

The regulator added that said 270 of the disengaged workers, during the quarter, were the federal government employees; 282 workers from the states and 9929 disengaged employees from the private sector, amounting to 10,481 workers and payment of N3.32 billion.

Meanwhile, 10 out of the 36 states in the country are remitting pension contributions into the RSAs of their employees, the National Pension Commission (PenCom) has said.

The states, according to PenCom, are: Anambra; Delta; Lagos; Kaduna; Niger; Ogun; Osun; Ondo; Rivers and Zamfara.

The commission in its 2016 first quarter review, also said eight states have commenced the funding of their Retirement Benefit Bond Redemption Fund Accounts (RBBRFAs). The states include: are: Anambra; Delta; Lagos; Kaduna; Niger; Ogun; Osun and Rivers.

PenCom noted that state governments have continued to make progress in the level of their implementation of the CPS, stressing that 26 states had enacted their pension laws, whilst 10 others were at the bill state.

The regulator said 673,116 contributors were registered with the various Pension Fund Administrators within the period under review, adding that out of the number of registered retirement saving accounts, only 62.07 per cent amounting to 417, 834 of the RSAs were currently funded.

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