The National Pension Commission (PenCom) has paid out ₦82 billion to families of deceased pension contributors.
This program guarantees the proper distribution of payments to the surviving employees’ legal beneficiaries from the money accumulated in their Retirement Savings Accounts (RSAs).
PenCom has released new recommendations requiring companies to open RSAs for their employees within six months of employment in an effort to expedite the process.
This step guarantees that all donations are accurately recorded and attempts to avoid delays in benefit disbursement.
Additionally, with effect from January 31, 2020, PenCom has instructed Pension Fund Administrators (PFAs) to stop operating Death Benefits Accounts (DBAs).
The amount is a 40.3% increase over the N58.6 billion provided in 2023, confirming the pension plan’s increasing ability to help the families of contributors who have passed away.
According to an analysis, death payments have risen steadily over time.
In 2020, 6,731 next of kin received a total payment of N31.09 billion, while 8,327 recipients received N42.83 billion in 2021.
In 2022, the amount increased to N59.6 billion, covering 10,631 cases; in 2023, it reached N58.6 billion, covering 9,836 next of kin.
