BY NKECHI NAECHE-ESEZOBOR--The National Pension Commission, (PenCom), approved N665.23 billion lump sum payments to annuity retirees in the last 15 years.
Chief Executive Officer of PenOp, Oguche Agudah, disclosed this at the yearly media parley with Nigeria Association Of Insurance and Pension Editors, (NAIPE) with theme: “At the dawn of 20 years pension reforms, what are the gains?” organised the Association in Lagos.
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On retirees under Programmed Withdrawal, he said the lump sum paid on programmed withdrawal stood at N964,239.47 billion as at the same quarter of 2023.
According to a recent report released by the Commission, indicates the number of retirees that opted for annuity option of pension declined by almost 10 percent to 3,156 in the second quarter of 2023, from 3,505 recorded in the first quarter of 2023 as against an increase of 27 percent in the first quarter, 2023.
A retiree under the Contributory Pension Scheme, CPS, has the option to choose between enrolling on annuity with part of his pension savings after retirement or take up programmed withdrawal of the pension savings with a Pension Fund Administrator, PFA.
The Pension Reform Act opened huge business opportunity for the insurance industry by introducing life annuity which underwriters sell to retirees under the CPS.
