In a significant development, the National Pension Commission (PenCom) has disclosed that a total of N356.32 billion has been disbursed in pension settlements to 91,214 relatives of deceased workers enrolled under the Contributory Pension Scheme.
This revelation comes from PenCom’s second-quarter report on the approval of death benefits, which highlights the commendable effort in providing financial support to families of deceased contributors to the pension scheme.
According to the report, a total of 92,752 requests for death benefits were submitted. However, 1,528 requests were rejected from the inception of the scheme until the end of the second quarter of 2023.
Breaking down the approved settlements, 59,058 beneficiaries were related to deceased workers in the Federal Government service, 9,246 were under state governments, and 22,910 were associated with the private sector.
In the second quarter alone, the report notes that 2,049 beneficiaries sought death benefits for deceased employees/retirees. Out of these, 2,042 requests were approved, with only seven rejections attributed to incorrect documentation.
Of the approved death benefit requests in the second quarter, 653 were from the private sector, and the remaining 1,389 were from the public sector, totaling N12.2 billion in approved settlements.
PenCom’s revised regulation on the administration of retirement and terminal benefits outlines the process for handling death benefits. Legal beneficiaries of the deceased are required to submit relevant documents, including a completed death notification form, to the Pension Fund Administrators.
The documentation must also include a letter of administration, and beneficiaries are mandated to provide a signature verification letter issued by the deceased’s banker. Additionally, evidence of death, such as a certificate issued by PenCom (for deaths at home), and other specified documents, must be submitted to facilitate the processing of death benefits.
This milestone in pension settlements underscores the commitment of PenCom to providing financial relief to families during challenging times and ensuring the seamless administration of benefits under the Contributory Pension Scheme.