507,335 job losers withdrew N247.466bn from pension savings before attaining retirement age- PenCom
Pension
507,335 job losers withdrew N247.466bn from pension savings before attaining retirement age- PenCom
Nike Popoola
No fewer than 507,335 workers under the age of 50 have withdrawn N247.466bn from their pensions, amounting to a quarter of the total funds in their Retirement Savings Accounts (RSA) with their respective Pension Fund Administrators under the under the Contributory Pension Scheme (CPS) as of the end of June.
Figures obtained by Dailyeconomy from the National Pension Commission’s second quarter report showed that they consisted of workers who either lost or left their jobs and couldn’t get another paid employment after four months.
According to the pension industry regulator, during the second quarter of 2024 financial year, 5,539 workers withdrew N9.273bn, while 518,850 withdrew N238.191bn from the inception of the scheme till the end of first quarter of 2024.
It stated, “A total of 5,539 RSA holders requested to access 25% of their RSA balances due to temporary loss of employment. Out of that, 5,528 RSA holders’ requests were approved, while 11 were rejected because their ages were above 50 years.
“Out of the 5,528 applicants whose benefits were approved, 5,223 were from
the private sector, while the remaining 305 were from the public sector.
The sum of N9.273bn was approved for the 5,528 RSA holders under the age of 50 years.”
The Pension Reform Act 2014 states that workers can access 25 per cent of their RSAs upon job loss or resignation.
However, he must wait for four months before he can apply for it if he doesn’t get another job within that period.
Section 7 (2) of the ‘Revised Regulation on the Administration Of Retirement and Terminal Benefits’ states that, “Where an employee voluntarily retires, disengages or is disengaged from employment as provided for under section 16 (2) and (5) of PRA 2014, the employee may with the approval of the Commission, withdraw an amount of money not exceeding 25 percent of the total amount credited to his RSA, 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.”
