TUC to PenCom: Amend pension act to enable workers withdraw 50% from retirement savings

The Trade Union Congress (TUC) has asked the National Pension Commission (PenCom) to recommend an amendment of the pension reform act (PRA) 2014 to allow workers can withdraw 50 percent of pension savings upon retirement.

Part III, section 7 (1a) of the PRA 2014 states that employees can withdraw a lump sum from the total amount in the retirement savings account provided that the amount left after the withdrawal is sufficient for programmed withdrawals or annuity for life

In a statement signed by Quadri Olaleye, TUC president, and Musa-Lawal Ozigi, the secretary-general, the labour union said workers would be able to set up petty businesses with the 50 percent withdrawal to complement whatever amount the commission pays them at the end of the month.

The congress also asked PenCom to fulfil the objectives of the micro pension plan (MPP), which was launched by Muhammadu Buhari in March 2019, to ensure that all workers in both formal and informal sector are part of Nigeria’s financial inclusion policy.

“On the micro pension plan embarked upon to improve the standard of living of the informal sector participants at retirement and also reduce dependence on extended family, we would also appreciate it if the course is followed squarely because of its benefit and tendency to boost life expectancy,” the statement read.

TUC also commended Aisha Umar, acting director-general of PenCom, for the initiatives she has brought introduced.

“The commission is too sensitive to be entrusted into the hands of people with questionable character. As a stakeholder, we have watched with keen interest the activities of the commission and can say that Umar has done creditably well enough to earn a promotion,” it said.

The congress said prior to Umar’s appointment, it had issues with payment of pension and pensioners dying without being paid statutorily stipulated percentage of their contribution due to them at retirement adding that the story has changed since Umar became acting DG.

Featured image: Pensioners during a verification exercise