Centre tasks PenCom on proper handling of death benefits, depleted accounts

The Centre for Pension Rights Advocacy, on Monday, urged the National Pension Commission (PenCom) to prioritise the proper handling of death benefits and depleted accounts for pensioners.

Ivo Takor, Director of the centre, made the call while speaking with the News Agency of Nigeria (NAN) in Lagos.

Takor, while reacting to PenCom’s directive to Pension Fund Administrators (PFAs) and custodians to settle all pension benefits within three working days, advised commission to look into issues relating to death benefits and the depleted accounts of pensioners.

He commended the new directive, describing the streamlined payment system as one that would enhance efficiency.

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He said that ensuring timely and seamless payment of death benefits to beneficiaries is crucial for maintaining the integrity of the pension system.

He noted that PenCom ought to also address the issue of depleted accounts, which could leave retirees without sufficient funds for their livelihood.

“This policy shift is a welcome development for Retirement Savings Account (RSA) holders, as it reduces unnecessary delays in accessing their retirement benefits.

“The streamlined process will enhance efficiency, ensuring that retirees and other eligible beneficiaries receive their funds promptly.

“Additionally, the continued oversight by PenCom, especially for sensitive cases like death benefits and depleted accounts, maintains a necessary layer of accountability and protection for RSA holders.

“The approval of benefits under the CPS is a crucial aspect of ensuring that retirees enjoy a smooth transition into retirement,” he said.

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Takor noted that PenCom had reinforced its commitment to building a responsive and effective pension system by allowing PFAs to handle the bulk of benefit processing independently.

He encouraged RSA holders to engage with their PFAs for more information and guidance on how these new directives might impact their benefit applications.

NAN reports that the National Pension Commission has mandated Pension Fund Administrators (PFAs) and Fund Custodians to approve and pay pension benefits to eligible applicants within three working days of receiving complete applications.