Editorial Times | Abuja



The National Pension Commission says it will no longer pay death benefits to legal beneficiaries of employees upon the death of the employees.

This was contained in a notice made available to journalists by the management of the Commission.

The statement reads

“Section 11(1) of the pension reform act (PRA) 2014 mandates every eligible employee to maintain a Retirement Savings Account (RSA) with a Pension Fund Administrator (PFA) of his or her choice.

The Act also mandates every employer to open a nominal RSA within six months of assumption of duty for the employee who fails to open in RSA in accordance with section 11(5) of the PRA 2014. Employees are therefore required to ensure that RSAs are opened for all their employees.

Prior to the PRA 2014, Death Benefits Accounts (DBA) have been used by legal beneficiaries to access the benefits of the deceased who did not open RSA during their lifetime. However, pursuant to the above cited statutory provisions, this practice is no longer valid.

Accordingly, the general public is hereby notified that the processing of DBA for death benefits claims would be discontinued with effect from 1 February, 2020. All PFAs have been directed to stop the opening of DBAs with effect from 31 January, 2020.

Signed

Management”

A lot of Nigerians under the contributory pension scheme are crumbling. Especially those who were already in service for over 14 – 15 years before its introduction.

They said their contributions were not enough, hence their monthly take home pay is way below the minimum wage.

Some said that there was never a corresponding increase in their monthly pensions despite the increase in their savings with the PFAs.



http://www.editorialtimes.com/pension-the-federal-government-discontinues-payment-of-death-benefits/

Good decision.

Chai!

Great decision, but it only affect the lowest of the low, the big thieves will always have their way