Govt, private retired workers get N13.21bn from PFAs

Pension Fund Administrators (PFA) in the country have credited to the account of private and government retired workers a total sum of N13.21 billion.

The payment was captured in the National Pension Commission first quarter 2022 ‘Retiree life annuity’.

‘Retiree life annuity’ is a stream of income purchased from a life insurance company with the available Retirement Savings Account balance under the Contributing Pension Savings as a premium.

In broad terms, the main difference between an annuity and a pension is that you buy an annuity after retirement to provide you with a guaranteed regular income, whereas you save into a pension pot throughout your life.

Read also: Pension commission blames lack of funds for failure to pay retired govt workers

PFA in its report stated that, “The commission granted approval to 3,264 retirees under the retiree life annuity during the quarter under review.

” A total lump sum of N13.21bn was approved for payment to the retirees, while the sum of N22.69bn was approved for payment to 14 retiree life annuity providers as premium in return for total monthly/quarterly annuities of N231.93m.”

During the quarter under review, PENCOM also revealed it approved death benefits amounting to N13.39 billion to the legal beneficiaries/administrator.

According to PENCOM the money was for 2,574 deceased employees and retirees.

“This comprised 1,923 Public (FGN &State) and 651 private sector employees/retirees,” it said.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now