PenCom reestablishes 25% lump sum payment to retirees
The National Pension Commission has suspended the installment of 20 for every penny single amount to retirees under the Contributory Pension Scheme and guided all Pension Fund Administrators to return to the old format of 25 for each penny.
The acting Director-General, PenCom, Mrs Aisha Dahir-Umar, expressed this in Lagos on Thursday at a protection gathering.
The PenCom DG, who was spoken to at the gathering by the Head, Contributions Bond Redemption Department at PenCom, Olulana Loyimi, said the commission chose to suspend the new format in light of the reactions against its presentation.
She stated, “As you know the commission presented another layout for Programmed Withdrawal which produced results from fifteenth May, 2018. There have anyway been concerns communicated by a few partners. The commission in its standard responsive and consultative way has chosen to audit the format. Therefore, the commission has coordinated that Pension Fund Administrators return to the old layout till additionally take note.”
The commission in May discharged the layout to the PFAs for the estimation of retirement advantages to CPS retirees, which prompted the decrease in the single amount being paid out to the retirees to 20 for every penny of the adjust in their Retirement Savings Accounts and as low as 16 for each penny for a few beneficiaries.
The retirees every day communicated their dismay at their failure to access no less than 25 for each penny of the adjust in their RSAs which the law until now permitted.
Part III Section 7(1) An of the 2014 adaptation of the law states. “A holder of a RSA will upon retirement or accomplishing the age of 50 years, whichever is later, use the sum credited to his RSA for the accompanying advantage: withdrawal of a single amount from the aggregate sum credited to his RSA gave that the sum left after the singular amount withdrawal or annuity for life as per surviving rules issue by the commission every now and then.”
The significant parameters utilized on the layout to compute the month to month benefits are the date of birth, RSA adjust, last pay before retirement and sexual orientation of the retiree.