PenCom To Give 25% Of Funds To Contributors Who Lose Job

The National Pension Commission(PenCom) has said contributors who lose their job’s during the Covid-19 Pandemic will be allowed to draw 25% of savings from their Retirement Savings Account(RSA).

The commission’s spokesman, Peter Aghahowa, said many employees may lose their jobs as a result of the effect of the pandemic on the economy.

But in a chat with THE WHISTLER on Sunday, he said Contributors that lose their Jobs would be allowed to access a part of their balance if they failed to get another job after four months.

“The Contributory Pension Scheme was designed in such a way to take care of peculiar needs of Nigerians. So, at this time, we expect that quite a number of people will come forward that qualify for that.”

He however said the 25% fund palliative was built into the contributory pension scheme(CPS) to help cushion the hardship that, any emergencies, such as the Covid-19 pandemic may have brought.

“This is a provision in the Act , Section 7 (2), or you could describe it as a palliative that was built into the CPS arrangement.

Section 7(2) of the PRA 2014 of the Pension Reform Act 2014 provides that an employee, who is disengaged from employment before the age of 50 years and is unable to secure another employment within four months of such disengagement may make a withdrawal of not more than 25% from their RSA.

Meanwhile the PenCom said though there was lockdown, the commission has ensured that all Pension Fund Administrators (PFAs) continue to pay the pensioners as and when due.