Low-income pensioners can now withdraw their total retirement savings in full or continue receiving monthly pensions, pending the approval of the Minimum Pension Guarantee.
This update was detailed in a memo from the National Pension Commission (PENCOM), signed by the Head of Surveillance, A.M. Salem, and dated November 27, 2024. The memo aligns with Section 4.1 (g) of the revised regulation on retirement and terminal benefits, reflecting the new national minimum wage of ₦70,000.
Previously, retirees could only withdraw one-third of their Retirement Savings Accounts (RSAs). However, with the revised regulation, retirees whose RSA balances cannot generate a monthly pension equal to at least one-third of the minimum wage (₦23,333.33) can now choose between withdrawing the entire balance or continuing with their regular pension payments.
The memo also requires Pension Fund Administrators (PFAs) to provide necessary documents for retirees opting for lump-sum withdrawals. These include a consent form, a signed hard copy application letter, and a payment schedule. The changes take immediate effect.
PENCOM emphasized that PFAs must ensure retirees are fully informed about their options under the Minimum Pension Guarantee.
