The National Pensions Commission is to increase monthly withdrawal limit for pensioners operating under the programmed withdrawal system from this month. Acting Director General of PENCOM Aisha Dahir-UMar disclosed this while appearing before the Senate. She also used the opportunity to state the agency’s opposition to suggestions that 75% of Retirement Saavings Account (RSAs) be paid as lump sum.
Why is PENCOM increasing the limit
According to Umar, the increase was due to the income earned on investing pension assets.
the commission has just concluded an exercise to increase the monthly pension of all retirees on programmed withdrawal due to the income earned on investing their pension assets. Pension funds have been majorly invested in government debt securities such as treasury bills and government bonds.
Not everyone will benefit
Umar however stated that 30% of retirees will not be eligible due to the meagre size of their Retirement Savings Account (RSA). A RSA is a defined contribution plan in which both the employee and employer make monthly payments till the employee is retired.