PenCom approves monthly pension increase for retirees under CPS

PenCom has approved a monthly pension increase for retirees on programmed withdrawal under the contributory pension scheme

The National Pension Commission (PenCom) has approved a monthly pension increase for retirees on programmed withdrawal under the contributory pension scheme (CPS).

In a statement seen by Nairametrics, PenCom said the development marks the third edition of pension enhancement under the CPS.

The commission stated that the new increase will take effect in February 2023.

Programmed withdrawal benefits retirees: The commission also stated that the increase would apply to retirees under programmed withdrawal who have accumulated significant growth in their retirement savings accounts.

It stated, “PenCom is pleased to inform the general public that the third edition of pension enhancement under the contributory pension scheme (CPS) has been approved. The exercise is for existing retirees under programmed withdrawal who have accumulated significant growth in their retirement savings accounts (RSAs).

Need for proper documentation: The commission urged all eligible retirees to contact their Pension Fund Administrators (PFAS) to complete all required documentation. Part of the statement said:

“The effective commencement date of the enhancement is February 2023. All relevant retirees are, by this notice, advised to contact their respective pension fund administrators (PFAS) to complete the required documentation.”

The commission also assured all stakeholders of its commitment to the effective regulation, supervision and administration of pension matters in Nigeria.

What you should know: A programmed withdrawal is a method by which the employee collects his retirement benefits in periodic sums spread throughout the length of an estimated life span.