PENCOM Approves Total Withdrawal Of Low Income Earners Pension Contributions

The National Pension Commission, PENCOM, has implemented a new policy enabling low-income retirees to withdraw their entire Retirement Savings Account, RSA balances.

The new policy aligns with the increased national minimum wage of ₦70,000, signed into law by President Bola Tinubu on July 29, 2024.

A circular by PENCOM, explains that under the revised regulations, retirees whose RSA balances cannot fund pensions or annuities equal to one-third of the new minimum wage amounting to ₦23,333.33 may opt for a full withdrawal.

It notes that they can, however, continue to receive their monthly pensions until the implementation of the Minimum Pension Guarantee.

PENCOM has therefore directed Pension Fund Administrators, PFAs to comply immediately, requiring retirees to submit consent forms, handwritten applications, and payment schedules for approval.

This policy aims to ease financial pressures on retirees while ensuring transparency and informed decision-making.

PR/Umbwanko Baba