A total of 118,044 retirees withdrew N29.26bn from their Retirement Savings Accounts and left the Contributory Pension Scheme because they had low balances in their accounts which could not be utilised as monthly stipends for them.
Many of the affected retirees were those that their employers were deducting their pensions from their monthly emoluments but declined to remit the monies into the RSAs of the employees with their respective PFAs.
They included federal, state and private retirees, according to information obtained from the National Pension Commission.
Some of them were however foreigners who exited the CPS because they returned to their countries.
PenCom stated in its quarterly report, “The commission granted approval for the payment of the entire RSA balances of the categories 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.
While programmed withdrawal is the monthly stipend paid to the retirees by their PFAs, annuity is paid by life insurance companies to their pensioners.
The Pension Reform Act states that retirees with balances below N550,000 should be given back all their savings at retirement, as such was considered insufficient to procure either programmed withdrawal or annuity.