Retirees with low pension earnings now have the option to withdraw their entire retirement savings at once or continue receiving monthly pensions until the Minimum Pension Guarantee is approved.
This update comes from a memo issued by the National Pension Commission, signed by the Head of the Surveillance Department, A.M Salem.
The memo, dated November 27, 2024, states that retirees were previously limited to withdrawing only one-third of their Retirement Savings Accounts (RSAs).
Following the increase of the national minimum wage to N70,000, retirees whose pensions fall below one-third of this amount can now opt to withdraw their full RSA balance.
Pension Fund Administrators are instructed to process retirement benefits based on the new minimum wage, allowing retirees with pensions below N23,333.33 to choose between withdrawing their RSA balance or continuing to receive their current pensions.
Retirees opting to withdraw their RSA balance must submit specific documents for approval, including a consent form and a signed withdrawal letter.
All concerned parties are urged to comply with the new directive immediately as outlined in the memo.