Sacked workers withdraw 17.5% more money in Q2 2022
By Jeph Ajobaju, Chief Copy Editor
Cash withdrawals by sacked workers from pension savings rose 17.5 per cent to N6.65 billion in the second quarter of the year ended June 2022 (Q2 2022) from N5.66 billion in Q2 2021.
The latest report of the National Pension Commission (PenCom) shows, however, the number of sacked workers who withdrew from their pension savings declined 2.8 per cent from 9,517 in Q1 2021 to 9,250 in Q2 2022.
The Pension Reform Act 2014 permits the payment of 25 per cent of pension contribution to Retirement Savings Account (RSA) holders under the age of 50 years who are sacked and unable to secure another job within four months.
“The Commission granted approval for the payment of N6,645.54 million (being 25% of their Retirement Savings Account, RSA, balances) to 9,250 RSA holders under the age of 50 years, who were disengaged from employment and unable to secure another job within four months in Q2’22,” the report said.
“This is against the payment of N5,661.68 million to 9,517 RSA holders under the age of 50 years, who were disengaged from work and unable to secure jobs within four months in Q1’22.”
_____________________________________________________________
Related articles:
PFAs invest N9tr in stable, safe FGN securities
Hard pressed retirees urge Governors to pay pension
PenCom lists 28 states as pension payment defaulters
_______________________________________________________________
Contributions by public, private sectors
Total pension contributions remitted to individual RSAs in Q2 2022 stood at N238.75 billion.
“Out of this total, the public sector accounted for N136.79 billion or 57.29%, while the private sector contributed N101.96 billion or 42.71%.
“The cumulative pension contributions from inception to the end of the second quarter of 2022 amounted to N8.01 trillion, which is an increase from N7.77 trillion as at the end of Q1 2022,” PenCom added, per reporting by Vanguard.
“A total number of 3,831 Micro Pension Contributors (MPC) were registered during the period under review by 17 out of 18 Pension Fund Administrators bringing the total number registered to 80,419 as at June, 2022.
“The total Pension Contributions received from MPCs in Q2 2022 was ¦ 22,193,664.59. This brings the total Pension Contributions received to ¦ 280,780,481.42 from 9,586 MPCs as at 30 June 2022.”
