The Trade Union Congress (TUC), says the National Pension Commission, PenCom, should pay retired workers 50% of their total pension contributions at retirement, to enable them to establish businesses as they retire.
This was disclosed in a letter signed by the President of TUC, Comrade Quadri Olaleye, to the PenCom on Tuesday afternoon.
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— Natl Pension Comm (@PenComNig) October 6, 2020
The TUC praised the efforts of the Acting Director-General of PenCom, Mrs. Aisha Umar, saying she has “done incredibly well enough to earn a promotion.”
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The TUC said before her appointment, workers had issues of payments as pensioners were dying without being paid statutorily stipulated percentage of the contribution due to them at retirement.
The TUC added that “the Congress wants the act amended such that workers will be paid 50% of their contribution at retirement, to enable them to establish petty businesses that complement whatever amount the commission pays them at the end of the month.”
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The TUC urged that the Micro Pension Plan for workers in the informal sector be followed squarely, because of benefits to the retired worker.
Nairametrics reported recently that sacked Nigerian workers below the age of 50, have withdrawn 25% of Pension funds valued at N2.56 billion, in line with the Pension reforms Act of 2014; which allows pension fund contributors to withdraw 25% of their funds if they lose their jobs and have not resumed work in 4 months.
nice step 2 d right direction
I think this is long overdue, for the PENCOM Regulations to be amended in order to reflect this 50% initial bulk payment, it’s just Logical.
The policy of 25% payment after retirement is very bad with the Nigeria economy that is not saving friendly due to inflation.50% payment is good and the Constitution should be amended in such a way that workers will have access to 50% of their pension after spending 10 years in service
It is a good development
Thank you for this step. I want to also add that pensioners in Federal Civil Service should be paid their entitlement latest three months after retirement. What do the insensitive Government want the retirees to eat for one year to two years. The late payment is the reason for starting contributing pension scheme. It is bad that one would be seeing his/her RSA balance and still goes hungry or dieing for lack of money to treat him/her self.