Life insurance firms providing Retiree Life Annuity under the Contributory Pension Scheme (CPS) received N32 billion premium in the third quarter of last year from Pension Fund Administrators (PFAs) to provide life annuity.
The premium was approved by the National Pension Commission (PenCom), according to the pension industry regulator’s Quarterly Summary Report.
This followed the choice of 4,294 retirees to receive their life retirement benefits through the annuity mode during the period.
The other mode under the CPS is Programme Withdrawal.
There has, however, been a growing desire by retirees to receive their benefits through the model even as Programme Withdrawal has the highest number of retirees.
The report read: “A total of 4,294 retirees chose annuity mode of pension payment in Quarter 3, 2022.
“A lump sum of N18.04 billion was approved for payment to the retirees, while the sum of N32 billion was approved for payment to Retiree Life Annuity Providers as premium in return for a monthly annuity of N326.10 million”.
Meanwhile, PenCom has continued to receive applications for the transfer of 228 contributors to the Nigeria Social Insurance Trust Fund (NSITF) to their PFAs during Q3 2022.
PenCom received 20 batches of applications to transfer NSITF contributions on behalf of 228 NSITF contributors for the sum of N15.45 million during the quarter under review.
“Approval was granted to transfer N13.99 million to RSAs of the 228 members. Similarly, the Commission approved monthly pensions in the sum of N40.67 million to 2,304 NSITF pensioners, PenCom said.
“Thus from 2006 to date, total pension payments made to NSITF pensioners from the NSITF fund amounted to the sum of N5.29 billion”, the commission said.
