InsuranceNo fewer than 83,568 retirees, at the point of retirement, opted for Retiree Life Annuity (RLA) plan, hence, paying a cumulative N464.53 billion premium to life insurance companies in the country, LEADERSHIP learnt.

Life annuity plan is an income purchased from an approved life insurance company which provides monthly or quarterly income to the retiree during his/her lifetime.

To this end, investigation shows that, from 2004 when the Contributory Pension Scheme(CPS) became operational, till December 31sr, 2020, the total premium transferred by Pension Fund Administrators(PFAs) on behalf of their customers, amounted to 464.53billion.

In a recent report from the National Pension Commission(PenCom) and made available to LEADERSHIP, the total number of retirees who opted for annuity plan increased from 74,805 in 2019 to 83,568 in 2020.

Further breakdown shows that federal government retirees accounted for 49,368 (59.07 per cent), the States retirees accounted for 10,494 (12.56 per cent) while the private sector retirees accounted for 23,706 (28.3 per cent) of the retirees who opted for annuity at the expense of programmed withdrawal plan.

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