PenCom approves N8.26bn as death benefits in third quarter of 2017

The National Pension Commission (PenCom) has approved N8.26 billion as death benefits to beneficiaries of 2,391 deceased employees during the third quarter of 2017.

PenCom in its 2017 third quarter report posted on its website indicated that the approval in the quarter moved the cumulative death benefits payments to a total of N129.70 billion..

PenCom said that the payment comprised of life insurance of 42,851 deceased employees from both private and public sector of the economy.

The report also showed that the total number of retirees currently receiving their pensions under the Programmed Withdrawal (PW) increased from 158,409 in the previous quarter to 165,740 in the third quarter, 2017.

This, it said represents 4.63 per cent (7,331) increase from the total retirement recorded through the PW.

A sectorial breakdown of those that retired under the PW during the quarter shows that, the public sector had 50.81 per cent (3,725) of total retirees while the private sector was 49.19 per cent (3,606).

During the quarter under review, the document revealed that 7,331 retirees were paid the sum of N17.91 billion as lump sum and N0.27 billion as monthly programmed withdrawals.

The report shows that from inception to date, a total of 165,740 retirees have been paid the sum of N427.16 billion as lump sum and N5.63 billion as monthly programmed withdrawals.

On retirement by annuity, the Commission approved a total of 5,243 applications for annuity retirement plan during the quarter, bringing the total number of retirees receiving their retirement benefits through the annuity plan to 41,688.

It indicates that 5,243 retirees received N4.30 billion as lump sum payment and paid annuity premium of N27.74 billion to Insurance companies, totaling N53.98 billion and N205.85 billion as lump sum payments and annuity premium.

It said that the retirees were receiving average monthly annuity of N1.85 billion as at the end of September 2017.

On withdrawal of 25 per cent of Retirement Saving Account (RSA) balances, it said approval was granted for payment of N5.00 billion to 16,165 RSA holders.

According to the report, the RSA holders were those under the age of 50 years and were disengaged from work and unable to secure another job within 4 months of disengagement.

It said the cumulative total number of disengaged RSA holders who were paid 25 per cent was 221,777 and were paid N76.03 billion from inception to date.

A further analysis on the payment of disengaged RSA holder, according to the report, showed that the private sector accounted for 95.40 per cent (221,777) while the public sector accounted for 4.60 per cent (10,687).

Credit: NAN