“Majority of prospective retirees are still unaware of the options available to them at retirement. We are here to let them know that there are three options.
“According to the Pension Reform Act 2004, Section 4, there is the option of monthly or quarterly withdrawal on the basis of an expected life span.
“The second option is annuity for life, purchased from a life insurance company, licence by NAICOM.
He told NAN that for annuity, the pay is for life, no matter the number of years the retiree lives.
He explained that in annuity, if a retiree dies within a guaranteed period, their beneficiaries would be paid the balance of their lump sum by the insurance company.
Similarly, a Benefit Administrator from Legacy Pension, Mrs Blessing Anieze, told NAN that the programmed withdrawal was handled by the Pension Fund Administrators (PFAs) and Annuity by insurance companies.
“The PFAs are known mostly by everyone and these retirees don’t really know about us.
“And annuity is a very good retirement package. It takes care of the elders in our societies no matter how long they live.
“These people cannot work again because of their age. Some don’t have business abilities after working so long for the government,” she said.
NAN reports that the exercise was organised by the National Pension Commission which started since June 9, and is expected to end on June 13 at the Women Development Centre, Abuja. (NAN)