The National Pension Commission has directed all pension fund administrators to stop opening death-benefit accounts for legal beneficiaries of deceased employees, effective 31 January 2020.
Legal representatives have been using death-benefit accounts to access benefits due to deceased employees who did not open retirement savings accounts during their lifetime. However, such a death-benefit account is not recognized under the Pension Reform Act, 2014 (PRA).
Accordingly, the discontinuation of this use of death-benefit accounts is to encourage all employees to open their retirement savings accounts during the course of their employment. A provision of the pension reform law mandates that employers must open retirement savings accounts for employees who fail to open their own accounts within six months after the start of employment.
Read a January 2020 report [PDF 114 KB] prepared by the KPMG member firm in Nigeria
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