Pension Fund Administrators (PFA) Sigma Pensions Limited has revealed its commitment to meet pensioners’ expectations and develop the market.
The PFA was reacting to a judgment by the National Industrial Court granting retirees access to a 50 per cent lump sum of their Retirement Savings Account (RSA) balance at retirement age.
The latest court ruling in the case of Rakiya Bakari Girei V Sigma Pensions Limited, National Pension Commission (PenCom) and Attorney General of the Federation comes in the wake of a similar case in which the Commission and a PFA secured a stay of execution on and are currently appealing the decision of the court.
Following several reports by the media, Sigma Pensions restated that as a responsible organisation, it would await the outcome of the proceedings and act accordingly in due course.
“Following the recent judgment by the National Industrial Court on the interpretation of the application of the lump sum payment to retirees, the PFA maintains a position of strict adherence to the law and laid down principles governing the industry, it noted.
“Nigeria’s pension industry is governed by the provisions of the Pension Reform Act (PRA) 2014, a repeal of the old PRA 2004. The 2014 Act, which is silent on a percentage which a retiree may receive as lump sum, establishes the regulator of the industry, the PenCom and grants the same mandate to among many others, “issue guidelines, rules and regulations for the investment and administration of pension funds. Pursuant to this mandate, PenCom on a regular basis issues directives and guidelines to govern the activities of Pension Fund Operators (PFOs) and PFOs are to strictly adhere to these guidelines.
“In line with this mandate, PenCom has provided PFAs with a programmed withdrawal template (PWT), a benefits computation tool. This template is used by PFAs to calculate and arrive at the amount, which a retiree may receive a lump sum and as programmed withdrawal over the course of their life, (except for annuity purchase). The PWT considers several specific parameters in determining the retirement payment package,” it stated.