February 27, 2024

The Pension Fund Operators Association of Nigeria (PenOp) said that 442,000 pensioners have received N1.63 trillion as a lump sum in annuity and programmed withdrawals from 2007 to 2023.

The Chief Executive Office of PenOp, Oguche Agudah, revealed this at a media parlay themed, “At the dawn of 20 years pension reforms, what are the gains?’. It was organised by the pension operators in Lagos.

Oguche noted that since the inception of the Contributory Pension Scheme (CPS) in the second quarter of the year, a total of N665.23 billion has been paid to 111.708 applicants as a lump sum on life annuity.

On retirees under programmed withdrawal, he explained, the lump sum paid stood at N964.239 billion as at Q2 ‘2023.

According to him, approval of death benefits payment also rose to N356.32 billion as death benefits to the beneficiaries of 91,214 deceased employees were recorded since the scheme’s inception.

The Head of the Surveillance Department at PenCom, Ehimeme Ohioma, said returns on investment must be above inflation, stating that if the returns are not above inflation, there would be a loss on real savings.

“How do we make the pension funds earn a real return on investment?” he asked.

Ohioma said in 2022, the commission increased the minimum regulatory capital for PFAs to ensure there was enough capital for critical infrastructure and to run an efficient sector.

He said capacity increase is a continuous thing because the world is dynamic. The skills of the industry practitioners and the commission need to be constantly upgraded to meet the acceptable standard,” he said.


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