More Nigerians withdraw from retirement savings for survival

The National Pension Commission (NPC) has revealed that in the first six months of 2021, sacked workers of private and government institutions withdrew N9.45 billion from their retirement savings account.

PenCom disclosed this in its quarterly report titled, ‘Withdrawal due to temporary loss of employment.’

According to PenCom, the lay-off workers contacted their Pension Fund Administrators four months after being laid off and unsuccessful job search.

A breakdown from the report showed 1,645 of the sacked staff worked for the government while 16,880 were formal staff of private institutions.

“In the first quarter of 2021(January to March), the commission granted approval for the payment of N5.02 billion to 10,619 RSA holders under the age of 50 years, who were disengaged from work and unable to secure jobs within four months.

While in the second quarter of the year, “The commission approved the payment of N4.43bn to 7,906 RSA holders under the age of 50 years, who were disengaged from work and unable to secure jobs within four months,” the report stated.

READ ALSO: Without data on workforce, Nigerian govt says N321bn spent monthly on salaries, pension

Ripples Nigeria had earlier reported that in three years 48,873 workers withdrew N152 billion from their pension account.

According to Section 7(2) of the Pension Reform Act 2014 where an employee voluntarily retires, disengages or is disengaged from employment, as provided for under subsections (2) and (5) of section 16 of this Bill, the employee may, with approval of the Commission, withdraw an amount of money not exceeding 25 percent of the total amount credited to his or her retirement savings account.

The section however noted that such withdrawal shall only be made after four months of such retirement or cessation of employment and the employee does not secure another employment.

Similar Articles

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Advertismentspot_img

Instagram

Most Popular