Over 93,000 Private Workers Retire Without Benefits- PenCom
The National Pension Commission (PenCom) has revealed that 93,803 private sector workers have since the inception of the Contributory Pension Scheme (CPS) retired without pension benefits.
This was contained in the commission’s fourth quarter 2018 report which explained that this was so because the worker’s retirement savings accounts (RSAs) 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.
According to PenCom , the sum of N845.36 million was approved in the fourth quarter of 2018 for 3,572 retirees, which included 188 public (FGN and State) and 3,384 private sector retirees.
The pension industry regulator further noted that 103,016 retirees received en-bloc payments totalling N25.80 billion from inception to the end of the fourth quarter of 2018.
The commission however, enjoined workers to embrace the voluntary contribution to enable them enhance their contributions as the private sector workers can only enjoy pension benefits when their employers comply with the 18 per cent pension contributions.