The Pension Fund Operators Association of Nigeria (PenOp) has disclosed that about N208.86 billion was released to about 475,230 Nigerians who lost their jobs as of the second quarter of 2023.
At a media parley with the theme, ‘At the Dawn of 20 Years of Pension Reform, What are the Gains?’ organised by PenOp for Abuja-based reporters on Thursday, the Chief Executive Officer at PenOp, Oguche Agudah, disclosed this.
According to his presentation document, as of the third quarter of 2011, N3.86 billion was paid to over 27,169 Retirement Savings Accounts (RSA) holders under the Contributory Pension Scheme (CPS).
However, by Q2 of 2023, the number of RSA holders who lost their jobs rose by 1,649.18% while the amount paid rose by 5,310.88%.
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- According to Section 7(2) of the Pension Reform Act 2014, “Where an employee voluntarily retires, disengages or is disengaged from employment, as provided for under Section 16(2) and (5) of this Act, the employee may, with the approval of the National Pension Commission, withdraw an amount of money, not exceeding 25% of the total amount credited to his retirement savings account, provided that such withdrawals shall only be made after four months of such retirement or cessation of employment and the employee does not secure another employment.”
Agudah presented a breakdown of the amount released to Nigerians who lost their jobs and are entitled to 25% of the money in their RSA.
By 2015, N32.50 billion was paid to 125,395 RSA holders who lost their jobs while 331,003 RSA holders were paid the sum of N116.88 billion as of Q3 2019.
Also, N182.2 billion was paid to 443,720 RSA holders in Q3 2022 and as of Q2 2023, the sum of N208.86 billion was paid to 475,230 Nigerians who were no longer employed.
On death benefits payment to next of kin, Agudah said over N356 billion was paid to over 91,000 employee beneficiaries by Q2 of 2023.
Also, on 20% equity contribution for mortgage, he said over N7.8 billion had been paid to more than 600 applicants by the same period this year.
He added that the association is engaging with the government for various incentives to encourage more participation in Micro Pension Funds, an arrangement under the CPS that allows self-employed Nigerians to contribute towards their retirement.
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