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PenCom disburses N33.76bn gratuity to retirees, next of kins

By The Citizen

About 31,986 retirees and the next of kin of dead pensioners from different parastatals of the Federal Government have claimed a total of N33.76bn pension benefits.

According to the latest report of the National Pension Commission (PenCom) on Parastatal Pensioners' Verification Exercise, N20.6bn of the total claim has been paid out to the beneficiaries by the Office of the Accountant General of the Federation.

In the report, PenCom stated, 'The commission concluded the PPVE1 and issued the final report to the Budget Office of the Federation. During the exercise, 29,873 and 2,113 pensioners and the next-of-kin of deceased pensioners were enrolled respectively.'

It added that the total pension liabilities due to pensioners and next of kin enrolled during the exercise was N33.76bn.

Also, under the Contributory Pension Scheme, the commission said that it approved 1,504 requests for payment as death benefits to the next of kin of deceased employees in both the public and private sectors.

It noted that the total death benefits paid stood at N3.6bn, with N850.22m representing proceeds of Group Life Insurance Policy.

The report showed that the public sector accounted for the highest proportion of death benefit claims, which was 98.87 per cent of the total claims.

PenCom also noted that while some pensioners under the CPS opted for programmed withdrawal, others settled for annuity as they retired.

The figures showed that a larger number of the retirees went for programmed withdrawal than annuity.

According to the Managing Director, African Alliance Insurance Plc, Mr. Alphonse Okpor, the pension scheme ensures that all the balance in the Retirement Savings Account is not given to the pensioner at retirement. The retiree is only allowed to use the money to take either the annuity or programmed withdrawal.

He explained that it was meant to guide against wasteful spending or squandering of the gratuity if paid in bulk.

The insurer, who explained that annuity implied an annual income, said, 'The idea is that when you retire, you buy annuity policy that will guarantee income for the person until death comes just as if they are working.'

The Deputy General Manager, Technical and Services, AIICO Pension Managers Limited, Mr. Patrick Onos, explained further that the programmed withdrawal was being managed by the PFAs, while insurance firms handle annuity.

According to him, there comes a separation between a retiree and his PFA if he opts for annuity because the balance in his RSA will be transferred to an insurance firm.

The PFA operator also confirmed that in his firm, more retirees had opted for the programmed withdrawal than the annuity.

He said, 'According to how the programmed withdrawal is fashioned, it is guaranteed for a minimum of 10 years but it can go further than that. How far it can go depends on the balance in his RSA account. The payment is a function of the balance in the RSA account. Once the balance is exhausted, that ends the programmed withdrawal agreement.'

The National Provident Fund was established by the Act of Parliament in 1961, under the old pension scheme, to regulate the private sector pensions.

It ensured a monthly contribution from the basic salary of workers by both the employee and the employer.

The NPF was later converted to a limited social insurance scheme and administered by the Nigeria Social Insurance Trust Fund in 1993.

The Pension Act of 1979, and the NSITF, which administered the old scheme, subjected pensioners to difficult situation as they faced accumulated pensions, which was exacerbated with long queue for days to claim their entitlements. Many retirees died during the hardship.

It was learnt that this scheme was not funded, leading to mounting pension liabilities that became unsustainable.

The reported non-existence of pension schemes in many sectors, coupled with difficulty in accessing benefits, experts said added to the crisis.

The setback of the scheme led to the repeal of the 1979 Act and subsequent amendment of the NSTF Act of 1993.

The 2004 Pension Reform Act was enacted and it resulted in the creation of a contributory scheme for the payment of retirement benefits of workers in the public service and the private sector.

Your Comment

Steve Awa Onoh | 9/22/2013 4:26:00 PM
My fada died in active service since 2007 and till now i av not recieve his death benefit. He worked wit d nigeria police. I need someone who will help me to follow it up pls. My number is 08101551901
Okpara Ikechukwu | 6/12/2014 8:47:00 AM
when will Nigeria war affected policemen receive their payments?
SKYLIMIT BENSON | 10/15/2014 11:00:00 AM
PLS when is the police going to pay our gratuity.I lost my dad since 2009 till now no gratuity from the Nigeria police,abi till all of us dia?my phone no:07037531646
john aniemeka | 2/10/2015 2:46:00 AM
i am from b division asaba delta state my father died active service since 2006 up till now police has not payed his gratuity pls we need help my number 08068842638
BOBBY | 3/1/2015 12:42:00 AM
These noble commission should please pay the next of kin,so as to enable these children meet up with their mates.
BOBBY | 3/1/2015 12:44:00 AM
These noble commission should please pay the next of kin,so as to enable these children meet up with their Level of challenges
Ashiekaa Aondover | 3/17/2015 9:47:00 AM
my fade die in 2013 he is a police officer but till now police did not pay us i want to as what is going on in to nig police force?
Ashiekaa Aondover | 3/17/2015 9:49:00 AM
my fade die in 2013 he is a police officer but till now police did not pay us i want to as what is going on in to nig police force?my number is 08097460857
Ashiekaa Aondover | 3/17/2015 9:51:00 AM
my fade die in 2013 he is a police officer but till now police did not pay us i want to as what is going on in to nig police force?my number is 08097460857
Ashiekaa Aondover | 4/9/2015 8:27:00 PM
my fada died in 2013 But no life insurance have be pay to us and nig police say thier use to pay in a year time nd is going to two years now but noting ve be pay to us what is happening with nig police force my num is 08073909126
jessey | 4/13/2016 3:08:00 PM
my dad work in the anti bomb squad in ilorin since his death 5 years back we have not been given our dad gratuity things have been hard for me and my siblings.please help
jessey | 4/13/2016 3:14:00 PM
here is my number 07036765744 in case of any assistance
Ashmad | 4/25/2016 8:36:00 AM
as for me i cnt evn say anthng......couse no life insuance,no gratuity,no.....................
martins | 6/25/2016 6:08:00 PM
Mr. Francis Friday | 7/26/2016 12:55:00 AM
Since I retire on October 2015 nothing like pension or gratuities for me, I have family and suffer for 35 years help me to enjoy my suffering before I died pls
Rosemary | 8/10/2016 1:50:00 AM
so sorry about that Mr Francis. am an insurance licences advisor. I can help you get your pension just like I have done for other retirees with the directions I'll give you to take. 08066868810. That's my contact. Thanks
jacob kromgap | 8/1/2016 4:44:00 PM
Why now, since 29 Jan 2010 ma dad died No gratuity! 08136060592
Olanrewaju Babatunde | 8/3/2016 8:10:00 PM
Sir,i loose my dad 3rd day of ileya festival last yr 2015,but since then we have not receive anything from insurance office Oyo state ib ,and my daddy leave many children,most of them,they are in higher institutions and nobody to assist us,please help us 08116250105 ,08176161104
grace nuhu | 8/31/2016 10:14:00 AM
my dad retires since 2002 update he has not recieved his gratuity we went to abuja 4*but no help please some one help my dad out my no 08080603036 borno state ministry of education
grace nuhu | 8/31/2016 10:38:00 AM
my dad retire since 2002 up to date he has not been paid his gratuity 14 years now he retire from borno state ministry of education my no 08080603036
blessing | 9/4/2016 11:02:00 AM
my dad died since 2007 in active service.he works with the Nigeria police and up till now his pension has not been paid.we have done the all the process necessary and also paid #20,000 to the police for further processes.but no response yet.....we were told that its been handled by l don't kwn was to do again....please help, is there any more process left? my numba is 07031147203.... tanks
clement Dememem | 9/29/2016 9:11:00 PM
My brother died since 2014 in active service, we procesed every thing but uptil now no respond from d police service commission, d children can no longer go to sch. Pls what is wrong. My no is 09051507175
lasisi mutiatu oluwakemi | 10/7/2016 1:28:00 PM
Am use in this medium to beg the federal government not to surfer we people that fall under new pension reform in paying our gratitude money as I am I left service on the 17 August 2016 . for now nothing has been coming in to make a living .sir/ma I Wii appriciate if the gratuity can be paid two or three month after leaving the office. no 08130170679 Thanks.
Emmanuel james | 11/25/2016 8:20:00 AM
my father died since 2014 and up till now his gratuity has not been paid. we have submitted all the necessary documents needed to process it. what's happening??? please help..... 08138595170
bukola yinusa | 1/15/2017 5:36:00 PM
Pls I lost my dad since 2003, and uptill now nothing has done, pls my mum is suffering and my siblings are there they need to go to school. It only d Grace of God I was able to finish my tertiary education but now, where my mum work to send me to school,she has been sent home bcos of d financial constraints. Plsssss my mother cry all day I need u to help me plssssssss
yinusa bukola. | 1/15/2017 5:40:00 PM
Pls this are my phone number. 07053879926, 07039295832
Bello Bolanle | 3/21/2017 1:31:00 PM
The inspector general of police,pls we need your assistance,bcoz i loose my Daddy year 2015,since then we have not receive anything from Nigeria police most especially the group life insurance,sir this suffering is getting too much,am from Oyo state.08116250105
Ulor Adams | 3/24/2017 7:49:00 PM
I hate nigeria
Simon Simon | 3/30/2017 10:06:00 AM
Nigeria police why?my father serve this land 34yrs and die,no burial benefit, no life insurance, no gratuity.... the family we are suffering. how I wish the lG will do some thing about this. pls we need help. 07033588884
Toyosi | 3/31/2017 8:49:00 PM
The politicians never stopped collecting their allowances even after retirements why should the civil servant do? This is called self centeredness, It sucks to know we are stuck in Nigeria.
claudius shuwa | 4/6/2017 8:56:00 AM
i lost my dad since 2005,he wrk as nigeria police man,no gratuty no lnsurance has be pay to us,and i so lost my mum so i lift wth my youge once pls i need help dis my no. 08072468884
Jeniffer umko | 4/9/2017 2:30:00 PM
We are in the state of limbo loosing ones dad is one thing surviving life afterwards is another life is hard I lost my Dad nigeria police officer since 2002 till date no gratuity no pension no burial right help help us we are 10 in numbers to siblings and wife 08032147275
Destint | 4/20/2017 2:18:00 PM
Pls.,what are the processes and documents required to access my benefits as the next of kin to my father who died in active service. Thanks. Contact : 08185337381
Immanuel | 6/12/2017 12:23:00 PM
Visit the nearest court close to you and apply for affidavits of next of kin. The document need will be given to you
Gift Godwin | 4/26/2017 12:59:00 AM
Pls what are the procedure to follow, because we keep hitting wall when ever we try to pursue our dads pensions and gratuity. Its been 11years now.08074759419
Hilda Wealth | 4/27/2017 10:42:00 AM
My dad worked with the ministry of Education and was later transfered to Ambrose Alli University when it was opened in 1981, he worked for the state government of Edo State as a Civil Servant for good 35, he retired in September 1997, died in June 2005. Till date his gratuity has not been paid . I need help on the procedure to follow for his gratuity to be paid
Hilda Wealth | 4/27/2017 10:51:00 AM
My dad worked with the Ministry of Education Edo State, and was later transfered to Ambrose Alli University Ekpoma when it was formed in 1981, he worked as a Civil Servant for good 35 years. He retired in 1997 and died in 2005 till date his entitlement/gratuity has not been paid. I need help on the procedure to follow for his entitlement/gratuity to be paid. 08053931774
Abagu Luper | 5/13/2017 2:33:00 AM
I lost my mother in 2015 till today no pension no gratuity. primary school teacher pls help me. 07062926720
Jonathan joseph adam | 5/18/2017 11:24:00 PM
Pls does any one have an idea of how much a DCP is going to collect as gratuity And also what will be the monthly pension????
InemesitEbunkamaodo | 6/14/2017 11:22:00 AM
Inemesit Ebunkamaodo. Pls iretired in September 2016, from federal civil service.whe n will I be paid? The #54billion that was given to pencom to clear back of debts owed the retirees up to march 2017 did not get to those of us who retired in September Pls helpme. Name INEMESIT EBUNKAMAODO
Erharuyi F.E. | 6/29/2017 2:24:00 PM
I Lost My Dad Pte Erharuyi Okunrobo from 149 BTN, Ojo Military Barrack since Tuesday 26th June 2001 which is making it exactly 16years now in active service and I have not been paid his Gratuity till date...I am the only child of this Soldier but my dad had his younger brother whom is my uncle has his first Next of kin and while I became the second next of kin been the child which I have I reported to his unit for a change in order for me as the Son to lay claim to my father's Gratuity as it has cost me more financial stress in transporting my uncle anytime they need me in any of the designated office from the Village...Please I need help on this aspect because it's really affecting me badly right now as an Entrepreneur based in Lagos...09056947105
musa KASIMU | 7/29/2017 2:49:00 AM
I lost my dad 2006, so as d next of King to my dad I was ask to bring his part 1 and part 2 other.... In Benin and lagos which I did so in Abuja a check of about 1.9m was given... Now is dat all d entitlement of my dad as a Sargent who served 4 over 36yr sir I need ur help cos some one told mi dat is d part 1 other money dat is bin paid to mi help sir I need to understand dis whole thing 08036050539
Olusola Adedayo | 8/11/2017 11:28:00 AM
Sir kindly let me know the month federal govt have paid retiree new contributory up to. I mean gratuity 2016 .what is causing this delay
Usman abubakar | 9/28/2017 1:31:00 PM
my father died 2013 as active staff with the prison service of Nigeria but till now we can't get his benefits, please we need help
Ejenavi Ogheneogaga | 10/18/2017 1:22:00 PM
My fada retire since 2013 and die september 9 2016 and uptill na the government have not paid us his pension money,now i can not go to school anymore please help us and my family let them pay us.He retire at delta state in ughelli as a civin sarvant his name is Godwin Ejenavi. Please Help Us.
Roland | 10/25/2017 2:34:00 PM
Every labourer is worthy of his wages .what is the function of police service commission if they cannot see to the welfare of retired officers interms of payment of gratuity and pension.i am not a Nigeria police personnel but i feel their pains how i wish am in the position to help.thanks
Roland | 10/25/2017 2:34:00 PM
Every labourer is worthy of his wages .what is the function of police service commission if they cannot see to the welfare of retired officers interms of payment of gratuity and pension.i am not a Nigeria police personnel but i feel their pains how i wish am in the position to help.thanks
james ogbelu | 10/25/2017 4:21:00 PM
want you people are doing is not good my father death in 2005 till now why we are strongly to survive and why you people are there enjoying yourself paying your blood cheldren school feels and doing all can of. things with our money dot knowing us why God say dot only do good for the people that you only known and why you people are not fealing God and you all call our leaders
Idongesit Obonukut | 10/26/2017 1:54:00 AM
I lost my dad since last year and uptil now we have not gotten his gratuite to help us further in school.I have filled all the necessary forms and submitted all that was needed bt i have not heard anything. Please government should plsease help us so that we will not go and steal .number 09023662377 Or 07035381806. God bless Nigerian Government.