Retirees move N563bn pension funds into insurance sector

A total of N563.23 billion of pension funds under the Contributory Pension Scheme have been moved into the nation’s insurance industry as at the end of June 2022.

Available data from the National Pension Commission (PenCom) show that 98,402 retirement savings account (RSA) holders, including 54,897 from the federal government, 11,955 from states and 31,152 from the private sector, are already collecting monthly pensions from life insurance companies.

On a monthly basis, the retiree life annuitants receive about N6.62 billion as pensions, according to the data.

Meanwhile, the Lagos State Government has continued its effort to clear the pension rights of its civil servants.

Read also: McKinsey & Company predicts bright future for Nigerian insurance sector

According to PenCom, in June 2022, the state government paid the sum of N1.5 billion to its retirees as settlement of their accrued rights.

This brings the cumulative payment made by Lagos State to N7.09 billion for the period December 2021 to June 2022.

Lagos State is currently owing N6.91 billion to its retirees as at the end of June 2022.

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