PenCom approved over N1.66 Trillion for PFAs to pay RSA Holders as at Q3 2022

February 6, 2023 PensionNigeria

National Pension Commission (PenCom) has approved the withdrawal of over N1.66 trillion for Pension Fund Administrators (PFAs) to pay Retirement Savings Accounts (RSAs) holders from inception to 30 September 2022.

Retirees on programmed withdrawal top the list of withdrawals from Retirement Savings Accounts (RSAs) with a total withdrawal of N901.48 billion, followed by Death Benefits N310.43 billion, Retirees on Annuity N199.26 billion, 25% Withdrawal N182.20 billion, Enbloc withdrawal N37.15 billion and Voluntary Contribution N32.93 billion.

Support PensionNigeria financially with N1,000 per Month HERE, or with any amount HERE
Empower us to do more independent analysis of the Pension Industry in Nigeria

Subscribe to PensionNigeria Daily News Broadcast on WhatsApp, just send “Subscribe” to 08160052802, PLEASE ensure you also save 08160052802 to your contacts as “PensionNigeria” to enable you receive the PensionNigeria News Broadcast.

Retirees on Programmed Withdrawal

The total number of retirees currently receiving their pensions under the Programmed Withdrawal agreements with Pension Fund Administrators (PFAs) is 315,112 (FG 49.74%, State Govt 10.13% and private sector 40.13%). The sum of N887.60 billion has been paid to retirees as lump sum while N13.88 billion has been paid as monthly programmed withdrawals, from inception to 30 September 2022, making a total payment of N901.48 billion to retirees on programmed withdrawal.

Retirees on Annuity

These are retirees who have chosen to receive their pension via annuity provided by Life Insurance companies. The total number of retirees receiving their retirement benefits through the annuity plan is 102,297 (FG 56.02%, State Govt 12.19% and private sector 31.79%). The sum of N193.32 billion was paid as lump sum while N5.95 billion was paid as monthly annuity pension payments to retirees on annuity plan, from inception to 30 September 2022, making a total payment of N199.26 billion to retirees on annuity plan. In addition, a total of N595.22 billion has been transferred from PFAs to insurance companies, being annuity premium, from inception to 30 September 2022.

Retirees Enbloc Withdrawal

This used to be for retirees whose Retirement Savings Account (RSA) balances were N550,000 or below and considered insufficient to procure a Programmed Withdrawal or Annuity of a reasonable amount over an expected life span, but based on the Revised Regulation on the Administration of Retirement and Terminal benefits, released in March 2022, Enbloc withdrawal now relates to retirees whose RSA balances could not provide a monthly pension of at least one third of the prevailing minimum wage (i. e. N30,000) and the retirees were subsequently paid the total balance in their RSAs. The sum of N37.15 billion has been paid to 141,636 retirees (FG 5.21%, State Govt 2.87% and private sector 91.92%) for Enbloc withdrawal from inception to 30 September 2022.

25% Withdrawal

25% Withdrawal is a temporary access to Retirement Savings Account (RSA) for withdrawal of 25% of RSA balance for employees who were disengaged, resigned or retired from employment before the age of 50 years and were not able to secure another employment after 4 months. The sum of N182.20 billion has been paid to 443,720 (FG 2.90%, State Govt 1.80% and private sector 95.30%) RSA holders from inception to 30 September 2022.

Death Benefits

Death benefit represents payments to beneficiaries of deceased Retirement Savings Account holders. The sum of N310.43 billion was paid to 83,533 beneficiaries (FG 65.87%, State Govt 9.46% and private sector 24.66%) from inception to 30 September 2022.

Voluntary Contribution

Voluntary Contribution is an additional contribution which RSA holders can contribute voluntarily to boost the balance in their RSA. RSA holders can also withdraw their voluntary contributions before they retiree, but in accordance with the guidelines on voluntary contributions. The sum of N32.93 billion was paid to 46,383 RSA holders (FG 6.42%, State Govt 0.07% and private sector 93.51%) from inception to 30 September 2022.

Check below for PensionNigeria breakdown of all the important aspects of the PenCom 3rd Quarter 2022 Report

DONT MISS our 3rd Quarter 2022 Report Series

Director General’s Remarks on PenCom 3rd Quarter 2022 Report
Analysis of Pension Operating Environment 3rd Quarter 2022
Appointment & Resignation of Pension Operators’ Board Members and Top Management Q3 2022
Recovery Agents recover ₦23.30 billion from Defaulting Employers as PenCom takes 19 Employers to Court over Non-Remittance of Pension Contributions in Q3 2022
Update on NSITF & Refund of Pension Contribution to Military & SSS Q3 2022
Lagos State only paid about half of the amount it committed to clear outstanding Accrued Rights of its Retirees
Kaduna State is not fully Implementing Contributory Pension Scheme but seeks PFAs to invest Pension Funds in Kaduna State Bonds
Ekiti State Pays 1st Batch of Retirees under CPS, plans to implement VC for Exempted Employees
Zamfara State exited CPS & PenCom has refund their Pension Contributions but Retirees are still not better off
Update on Benue & Bauchi State Pension Reform Laws
PenCom Engagements with 5 States on Implementation of Contributory Pension Scheme
Update on RSA Transfer System (RTS) 3rd Quarter 2022
Micro Pension Registrations per PFA & Fastest Growing PFAs as at 30 September 2022
Micro Pension Contributions received per PFA Q3 2022
Update on the Micro Pension Plan Q3 2022
List of Organisations Issued Compliance Certificates as at 30 September 2022
Total RSA Registration as at 30 September 2022
Status of Contributory Pension Assets as at September 2022
Biggest PFAs & Fastest Growing PFAs by RSA Registrations 30 September 2022
RSA Registration Age and Gender Breakdown for Q3 2022
PenCom approved over N1.66 Trillion for PFAs to pay RSA Holders as at Q3 2022
Status of Implementation of CPS in States as at 30 September 2022

Also Check out
Performance of all PFAs in Nigeria for January to September 2022 (Year to Date)

Subscribe to PensionNigeria Daily Newsletter and get Today’s Top Pension News delivered straight into your email box every Evening.
If you have subscribed before and you still do not receive our Newsletter, please check your “Spam Folder”, if you find our Newsletter there, mark it as “NOT SPAM” or move it to your Inbox

Pension is Your Right,
An Insurance for Old Age
Follow PensionNigeria on Social Media LinkedIn Twitter Instagram Facebook YouTube

You May Also Like