Withdrawals from pension savings rise to N8.27bn

The National Pension Commission (PenCom) has revealed that cash withdrawals by sacked workers in the country increased to N8.27 billion in the third quarter of 2022.

PenCom stated this in its latest annual report published on its website and obtained by Ripples Nigeria on Thursday.

The Pension Reform Act 2014 permits the payment of 25 percent of pension contributions to Retirement Savings Account (RSA) holders under the age of 50 years who are sacked (disengaged) from work and unable to secure another job within four months.

The report showed that out of 11,913 sacked workers which initiated withdrawals during the period, 435 were former staff of the Federal Government while 87 were ex-employees of state governments.

The private sector with 11,391 expectedly has the highest number of disengaged workers seeking relief from their pensions.

READ ALSO: PenCom recovers N721.12m from defaulting employers; others to face legal action

The report read: “The Commission granted approval for the payment of N8.28 billion (being 25 percent of their RSA balances) to 11,913 RSA holders under the age of 50 years, who were disengaged from employment and unable to secure another job within four months.”

PenCom revealed that total pension contributions remitted to individual RSAs in Q3 2022 stood at N223.82 billion.

It added that the cumulative pension contributions from inception to the end of the third quarter of 2022 amounted to N8.4 trillion as against the N8.1 trillion posted in Q2.

“Out of this total, the public sector accounted for N120.62 billion or 53.89%, while the private sector contributed N103.20 billion or 46.11

“The aggregate pension contributions of the public sector increased from N4.15 trillion in Q2 2022 to N4.27 trillion as at the end of Q3 2022. Similarly, the aggregate pension contributions of the private sector also increased from N3.86 trillion in Q2 2022 to N3.96 trillion as at the end of Q3 2022,” it concluded.

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