The Pension Fund Administrators and life underwriters providing group life cover have paid a whopping sum of N205.12bn death benefits to 62,596 deceased workers’ relatives.
The National Pension Commission since the inception of Contributory Pension Scheme, CPS on approval of death benefits for the fourth quarter confirmed this.
The CPS which was introduced by the Pension Reform Act in 2014 mandates the employers in public and private sectors to ensure their workers open Retirement Savings Accounts with PFAs.
It also mandates the employers to remit a total of 18 per cent of the monthly emoluments of the employees, comprising 10 per cent employer and eight per cent employee contributions into the respective RSAs.
PenCom stated that in the fourth quarter of 2019, “The commission approved the payment of N4.28bn as death benefits to the beneficiaries of the 1,586 deceased employees during the quarter under review, which brought the total number of deceased employees from both public and private sectors to 55,820.
The amount paid during the quarter moved the total payments of death benefits to N173.86bn.”
This is in addition to having a group life insurance cover for the workers, which guarantees three times annual emolument as death settlement
It added that in Q1, 2020, “The commission approved the payment of N9.34bn as death benefits to the beneficiaries of the 2,086 deceased employees during the quarter under review.
In Q2, 2020, “The commission approved the payment of N2.58bn as death benefits to the beneficiaries of the 591 deceased employees during the quarter under review.
“The commission approved the payment of N8.56bn as death benefits to the beneficiaries of 1,821 deceased employees during the Q3, 2020.
In Q4, 2020, “During the quarter under review, approvals were granted for payment of death benefits amounting to N10.78bbn to the legal named beneficiaries/administrators of 2,278 deceased employees and retirees, (comprising 1,582 public (FGN and states) and 696 private sectors).
These brought the total death figure and death settlements to 62,596 cases and N205.12bn respectively.
According to the commission, the contributors under the CPS rose slightly to 9.24 million in January from 9.22 million in December.
The commission disclosed that out of the employers that applied, a total of 1,877 organisations got its clearance for putting in place appropriate pension and insurance covers for their employees in the fourth quarter of 2020.
This qualified them to do business with the Federal Government.
It stated, “The commission received a total of 1,900 applications from private sector organisations for the issuance of pension clearance certificates.
“Out of this number, PCCs were issued to 1,877 organisations while 23 applications were declined due to inability of the organisations to meet the requirements for issuance of certificates.
“The records show that a total sum of N9.88bn was remitted into the RSAs of 41,923 employees of the 1,877 organisations.