Pension Fund Administrators (PFA) Sigma Pensions Limited is committed to meeting retirees’ expectations and developing the market.
The PFA responded to a ruling by the National Labor Court that gave retirees of retirement age access to a lump sum equal to 50 percent of their retirement savings (RSA) balance.
The latest court ruling in the Rakiya Bakari Girei V Sigma Pensions Limited, National Pension Commission (PenCom) and Attorney General of the Federation case stems from a similar case where the commission and a PFA suspended the execution on and are currently appealing the decision of the court.
After several media reports, Sigma Pensions confirmed that, as a responsible organization, it will wait for the outcome of the proceedings and act accordingly in due course.
“Following the recent judgment of the National Labor Court on the interpretation of the application of the lump sum payment to retirees, the PFA strictly adheres to the law and the established principles for the industry.
“Nigeria’s pension industry is subject to the provisions of the Pension Reform Act (PRA) 2014, a repeal of the old PRA 2004.”
The 2014 law, which says nothing about a percentage that a pensioner can receive as a lump sum, establishes the industry’s regulatory authority, PenCom, and among other things gives the same mandate to “issue guidelines, rules and regulations for investment and management”. of pension funds.
In accordance with this mandate, PenCom regularly issues instructions and guidelines that regulate the activities of the pension fund operators (PFOs) and the PFOs must strictly adhere to these guidelines.
“In accordance with this order, PenCom provided PFAs with a programmed payment template (PWT), a tool for calculating benefits. This template is used by PFAs to calculate and identify the amount a retiree can receive as a lump sum and programmed withdrawal over their lifetime (excluding annuity purchase). The PWT takes several specific parameters into account when determining the pension payment package, ”it says.