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109,284 Nigerian workers retire without pension

109,284 Nigerian workers retire without pension

Doris Ukaonu

Towards the end of June 2019, not less than 109,284 Nigerian workers retired without pension savings because of their inability to meet their pension target. 

Punch correspondent, Nike Popoola, reports that the workers were unable to meet their pension target because of non-payment of salaries,a non-remittance of monthly deductions from their remunerations, into their Retirement Savings Accounts from their employers.

According to the Pension Reform Act 2014, every worker must at the time of requirement,h up to N550, 000 in their Retirement Savings Accounts.

If a worker has less than N550, 000, they will be given all the money in their RSA  and allowed to quit the pension scheme.

It was also discovered that some of the affected retirees had at the end of June, withdrawn N27.09bn.

Some who had low sums in their RSAs were offered low monthly stipends for support, but they rejected it.

Speaking concerning the issue, a retiree Mary Moneme who retired with less than N1.6m balance in her RSA said, “My PFA said if I collected 50 per cent lump sum, it would be paying me about N6,000 per month if I took the programmed withdrawal. The insurance company said it would be paying me about N7,000  with the annuity.

“The PFA said if I took 25 per cent lump sum, it would be paying me about N9, 000 while the insurance company said it would pay about N10, 000.

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“What will I be using that kind of monthly stipend to do? I have left my PFA and have not returned there because that monthly stipend is not a living wage.”

Meanwhile, industry stakeholders said that the issue of no pension savings was because of the irregular payment of salaries from employers. Pension saving can only be deducted from a paid salary.

Also, some employers who cultivate the habit of deducting workers salaries and failed to reimburse their RSAs were also the cause of the lack of pension savings.

 

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