Features of Programme Withdrawal and Retiree Life Annuity

 

Features of Programme Withdrawal and Retiree Life Annuity 

Programme Withdrawal

• A product offered and administered by Pension Fund Administrators (PFAs)

 

Retiree Life Annuity

• A product offered and administered and by Life 1nsurance Companies (Retiree Life Annuity Providers)

 

Programme Withdrawal

• Regulated by the National Pension Commission (PenCom)

 

Retiree Life Annuity

 • Regulated by the National Insurance Commission (NAICOM)

 

Programme Withdrawal

•  Pays monthly/quarterly pension over an Pays monthly/quarterly Annuity for life as expected life span as determined using determined using usually the Tables the A(55) Tables of Annuitants Ultimate rates published by the Institute and Faculty of Actuaries of United Kingdom (as amended)

 

Retiree Life Annuity

    •  Pays monthly/quarterly Annuity for life as expected life span as determined using usually the PA (90) Annuitants Ultimate rates published by the Institute and Faculty of Actuaries of United Kingdom (as amended)

 

Programme Withdrawal

    •  The balance in the RSA is re-invested by the PFA to generate income/funds for the Annuity Pool and invested to generate retiree. The profit/loss on investment is credited into the retirees RSA.

 

Retiree Life Annuity

  •  The premium is transferred to a Retiree Life Annuity to generate income/funds for the Annuity Pool and invested to generate retiree. The profit/loss on investment is income to the pool. credited into the retirees RSA.

 

 

Programme Withdrawal

  • Retiree may benefit from periodic pension enhancement resulting from returns on investment of the pension funds in their RSAs.

 

Retiree Life Annuity

•  Periodic pension enhancement may be applicable depending on type of RLA purchased.

 

Programme Withdrawal

    • Balance of retirement benefits remain in the retiree's RSA and RSA statement of account is issued to Retiree  quarterly or on request.

 

Retiree Life Annuity

• Retiree receives monthly/quarterly annuity as long as he/she is alive.

 

Programme Withdrawal

   • Retirees may move to Retiree Life Annuity after one year of being under programmed withdrawal.

 

Retiree Life Annuity

•    Retiree on RLA cannot move to programmed withdrawal but may change to another RLA provider after at least two years with existing RLA provider.

 

Programme Withdrawal

• In case of death of a retiree, the legal of the beneficiary(ies) will be paid the total RSA balance.

 

Retiree Life Annuity

   •  In the case of death of an annuitant, RLA is beneficiary(ies) will be paid for at least ten years. On demise of the annuitant within the guaranteed period, the RLA provider would pay enbloc the sum of annuity for the remaining guaranteed years, at a present value to the named beneficiary(ies).

 

Programme Withdrawal

   •   The RSA balance under programmed withdrawal can be exhausted and resort be made to MPG.

 

 

Programme Withdrawal

   •  The RSA balance under programmed withdrawal can be exhausted and resort be made to MPG.

 

Retiree Life Annuity

• RLA are not exhaustible, provided the retiree is still alive.

 

Programme Withdrawal

 • Retiree and PFA share risk.

 

Retiree Life Annuity

• Risks are transferred to the RLA provider.

 

Reference :

National Insurance Commission 

National Pension Commission