PenCom releases N86.7bn to over 275,000 sacked workers

The National Pension Commission said it had released N 86 . 7 billion to sacked workers of various companies who participated in the Contributory Pension Scheme .
Acting Director – General , PenCom, Mrs Aisha Dahir – Umar , who disclosed this on Monday in Lagos , said the amount was for the settlement of 275 , 172 disengaged workers .

She said the figure represented the total paid from 2004 , when the CPS came into effect , to June 2018 .

Dahir- Umar also said the amount was about one per cent of the N 8 . 23 trillion pension assets .

The acting director – general noted that loss of jobs in both public and private sectors have been on the rise since the recession because employers want to control expenses .

She said in order to fulfil its promise, the commission had allowed the sacked workers access 25 per cent of their pension contributions , especially if they were unable to get new jobs .

“ The lean prospect of finding a new job after the loss of an earlier job was responsible for increase in demand to access 25 per cent of pension contributions .

“ The PRA 2014 allows contributors , under the age of 50 years , who were disengaged from work and were unable to secure another job within four months of disengagement , to access 25 per cent of their respective Retirement Savings Accounts .

“ The commission also recently reduced the assessment time after disengagement to four months from six months , ” Dahir -Umar said .

The acting director – general said in the second quarter of 2018 about 12 , 854 workers have been disengaged .

She , however , said the disengaged workers have been able to access N 5 . 6 billion from the pension assets within the timeframe .

“ Of the entire disengaged workers who accessed their pension contributions , about 93 per cent were from the private sector .

“ Some of the beneficiaries invested the money in business ideas in order to be self – employed .

“ Others used it to meet their more immediate financial needs, ” she said .

( NAN )

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