PENSIONS: COURT SAYS RETIREES ABOVE 60 ENTITLED TO 50% LUMP SUM, WARNS PENSIONS COMPANIES

…Court declares paying 25 percent lump sum payment to retiree above 50yrs by Pensions Administrator illegal.


Justice Oyebiola Oyewumi of National Industrial Court, Abuja has said retiree Mr Maroof Giwa is entitled to at least 50% pensions lump sum.

The Court said this is considering his age which is above 60 years, and the life expectancy of a male Nigerian as projected by WHO, and therefore ordered Arm Pension Managers to pay within 14 days.

The Court held that 25% lump sum calculated by the Arm Pension Managers as claimant’s pension is unlawful that the said withdrawal as clearly stated in the Pension Reform Act is in respect of a retiree who voluntarily retired at age 50 and not applicable to Maroof.

From facts, the claimant- Maroof Giwa had submitted that he approached Arm Pension Managers to apply for pension and withdrawal benefits but the PFA offered to pay 25% of his total retirement savings which he rejected and demanded 50% of the total sum.

The claimant claimed that the computation of the lump sum/benefits by the defendant done on the basis 25% not known to the law that he cannot be treated like a retiree who retired voluntarily that he’s 60 years and above and would want to withdraw 50% or 75% of his total pension.


https://theconscienceng.com/court-says-retirees-above-60-entitled-to-50-pensions-lump-sum/

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