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PenCom enhances pension for retirees on programmed withdrawal

The National Pension Commission (PenCom) has enhanced the pension of existing retirees on programmed withdrawal.

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The Federal Government had in November 2017 approved pension enhancement for retirees on contributory pension scheme (CPS) in line with Section 173 (3) of the Constitution, which provides that “pensions shall be reviewed every five years or together with any Federal Civil Service salary review, whichever is earlier.”

Daily Trust had on November 10, 2017 published an article which indicated that there was a loophole in the Contributory Pension Scheme (CPS) if retirees under the scheme were exempted from periodic pension enhancement.

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The recent announcement by PenCom that the enhancement has been approved and implemented means that accrued rights of existing pensioners paid into their Retirement Savings Account (RSA) will be periodically reviewed upwards just like their counterparts in the old defined benefits scheme.

However, PenCom said retirees on annuity would not benefit from pension enhancement since their retirement benefits had been moved from their Pension Fund Administrators (PFAs) to insurance companies of their choice.

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