Low-income pensioners can now withdraw their entire retirement savings at once or continue receiving their monthly pension while awaiting the Minimum Pension Guarantee approval.
In a memo issued by the National Pension Commission, signed by A.M. Salem, the Head of the Surveillance Department said that the change aligns with the new section 4.1 (g) of the revised regulations for managing retirement and terminal benefits, following the recent minimum wage increase to N70,000.
Previously, retirees could only withdraw one-third of their total Retirement Savings Accounts.
“According to Section 4.1 (g) of the Revised Regulation on the Administration of Retirement and Terminal Benefits, if the balance in the Retirement Savings Account is insufficient to provide a monthly or quarterly pension or annuity of at least one-third of the current minimum wage, then the retiree will be permitted to withdraw the entire balance from the RSA in one payment.
“Retirees whose monthly or quarterly pensions amount to less than N23,333.33, which is one-third of the present minimum wage of N70,000.00, may opt to either receive the entire remaining balance in their RSAs at once or continue to receive their current monthly or quarterly pensions until the Minimum Pension Guarantee begins.”
The memo indicated that requests for payments from retirees who decide to take the outstanding balance in their RSAs at once should be sent to the commission along with the specified documents for approval.
