Owing to the impact of covid-19 pandemic which resulted in huge numbers of job loss, the National Pension Commission has approved a total of 5,396 requests from individuals seeking to access 25 per cent of their balance due to temporal loss of employment during the period of January to February 2021.
The approval by the commission is in line with section 7(2) of the Pension Reform Act, 2014 which states that where an employee voluntarily retires, disengaged or is disengaged from employment the employee may with the approval of the commission withdraw an amount not exceeding 25 percent of the total credited to his/her retirement saving.
Information on the commission’s websites states that, a pension contributor’s cessation of employment and does secure another employment may not be applicable.
It added that section 13 of the pension reform act, 2014 allow contributors to move their retirement saving account through a transfer window from one pension fund administrator to other.
Recal that many employees were negatively impacted by covid19, leading to loss of jobs, however, “employees that keyed into the contributory pension scheme CPS, had their retirement saving account balance to fall back to.” said the statement.
The commission disclosed that a total amount of N2.6 billion was paid to employees that lost their job during the period of covid19
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