Insurers battle for space in retirement benefits business with 9.59% stake

Anohu-Amazu

Chuks Udo Okonta

Life Insurance operators need to up their games if they are to maximize the gains from retirement benefits business where they presently hold only 9.59 per cent leaving Pension Fund Administrators (PFAs) to control a whopping  90.41    per cent.

Director-General,  National Pension Commission (PenCom) Mrs Chinelo Anohu-Amazu, in an interview with a national daily, said  out of the 96,063 workers that had retired under the Contributory Pension Scheme (CPS) as at the first quarter of 2014,   86,851    (90.41    per cent)    of   the    retirees    opted    for programmed withdrawal   method of collecting   periodic pensions   including those who   retiree   under   health   ground,   while 9,212(9.59    percent)   went   for annuity

She noted that the total  value  of pension  industry  assets  under  the  CPS  stood  at about N4.6  trillion  as at September,   2014  with  an average  monthly  contribution of N20 billion  and 30 per cent annual  growth  rate.

She said  the total number of registered participants   in the CPS stood at 6,263,811 employees as at third quarter of 2014.  The public sector accounted for a proportional contribution of   48.69    percent,    while   the   private    sector accounted for the balance of 51.31 percent.

She noted that  the CPS has simplified   the process   of payment   of retirement   benefits through the issuance   and implementation    of effective   regulations   and guidelines, stressing that  the regulation  requires  employees   to commence   the  process of  accessing   their  benefits  6  months  before  the  date  of their  retirement. "This allows for smooth transition   into retirement   life as retirement benefits are currently paid as and when due," she added.

 She said the Commission   had paid the sum of N236.27 billion and  N25.27  billion  as  lump  sum  and  pension  to  retirees  respectively, adding that  In addition, N45.27   billion was   paid as premiums   to insurance   company offering annuity   products and N52.99 billion death   benefits   were

paid  to  20,136  beneficiaries   of “deceased  workers   in the  private  and  the public  sectors  during  the same  period.