Business
15,634 Retirees With Pensions Below N10,000 Exit Scheme – PenCom
About 15,634 workers who retired under the Contributory Pension Scheme (CPS) and could not earn up to N10,000 monthly stipends, withdrew N7.79 billion funds in their Retirement Savings Accounts with their respective Pension Fund Administrators in one year.
According to figures obtained on the National Pension Commission’s quarterly report on enbloc payments to the retirees, they were those who had less than N1.6 million in their RSAs, withdrew the total and exited the CPS from the second quarter of 2022 to end of first quarter of 2023.
They joined 133,738 retirees who had earlier exited the CPS for having less than N550,000 as their RSA balance when they retired.
PenCom had earlier granted approval for the payment of the entire RSA balances of retirees whose RSA balances were N550,000 or below and considered insufficient to procure a programmed withdrawal or annuity of a reasonable amount over an expected lifespan.
This made the total number of retirees who had exited the CPS to hit 149,372, with a total of N41.3 billion returned to them.
The 149,372 figure comprised of 7,584 Federal Government, 4,203 state governments and 137,585 private sector retirees.
According to PenCom’s reports, “In the second quarter of 2022, approval was granted for enbloc payment of retirement benefits to 3,369 retirees, which totalled N1.45 billion. These were retirees whose RSA balances could not provide a monthly pension of at least one third of the prevailing minimum wage (i.e. N30,000).
“In the third quarter, approval was granted for enbloc payment of retirement benefits to 4,529 retirees, which totalled N2.40 billion. These were retirees whose RSA balances could not provide a monthly pension of at least one third of the prevailing minimum wage (N30,000).
“In the fourth quarter, approval was granted for enbloc payment of retirement benefits to 3,677 retirees, which totalled N1.56bn. These were retirees whose RSA balances could not provide a monthly pension of at least one third of the prevailing minimum wage (N30,000)”.
It added that, “In the first quarter, 2023, approval was granted for enbloc payment of retirement benefits to 4,059 retirees, which totalled N2,54 billion. These were retirees whose RSA balances could not provide a monthly pension of at least one third of the prevailing minimum wage (N30,000)”.
In 2022, PenCom said new retirees who were entitled to less than N10,000 monthly pension at retirement could take the total money in their RSAs.
PenCom reviewed its regulation on enbloc payment to retirees, and allowed retirees with less than N1.6 million at retirement to withdraw all the balance in the retirement instead of being on monthly payment.
It stated, “There is a new regulation that says, if your RSA balance cannot provide one-third of the minimum wage, you are allowed to go with the balance in your account.
“If your monthly pensions is not up to N10,000, which is a third of the N30,000 minimum wage, you can take all your saving”.
The pension industry’s regulator explained that due to the reduction in the value of the money, it decided to review the enbloc amount which would amount to about N1.6m.
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FG Fixes Uniform Prices for Housing Units Nationwide, Approves N12.5m For 3-bedroom Bungalow ……..Says Move To Enhance Affordability, Ensures Fairness
“The approved selling prices are as follows: One-bedroom semi-detached bungalow, N8.5 million; two-bedroom semi-detached bungalow: N11.5 million and three-bedroom semi-detached bungalow, N12.5 million,” the statement added.
Minister of Housing and Urban Development, Ahmed Dangiwa, stated that priority in the allocation of the housing units would be given to low and middle-income earners, civil servants at all levels of government, employees in the organised private sector with verifiable sources of income, and Nigerians in the Diaspora who wish to own homes in the country.
The Permanent Secretary in the ministry, Dr. Shuaib Belgore, explained that several payment options have been provided to make the houses affordable and flexible. These include outright (full) payment, mortgage, rent-to-own scheme, and installment payment plans.
The ministry further announced that the sale of the completed housing units across the northern and southern regions will soon commence.
“Applications can be made through the Renewed Hope Housing online portal at www.renewedhopehomes.fmhud.
The ministry, however, clarified that the approved prices apply strictly to the Renewed Hope Housing Estates which are funded through the ministry’s budgetary allocation, as against the Renewed Hope Cities in Karsana Abuja, Janguza Kano, Ibeju Lekki, Lagos which are being funded through a Public Private Partnership (PPP).
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