The National Pension Commission has attributed the delays often experienced by beneficiaries of deceased pension contributors to the rigorous verification processes carried out by Pension Fund Administrators to avoid wrongful payments.
Speaking at the recent Crusader Sterling Pensions Limited Stakeholders Forum in Lagos, the Principal Manager at PenCom’s South-West Zonal Office, Ladi Ishola, emphasised that while the commission is committed to easing access to pension entitlements, due diligence remains a critical safeguard to ensure that only legitimate beneficiaries are paid.
Death Benefit is the available Retirement Savings Account balance due to the legal beneficiary(ies) of a deceased RSA holder. PenCom data revealed that about 45,976 beneficiaries have received the death benefits of their deceased relatives worth N274.34bn in five years.
“You know, the essence of putting all those policies in place is to ensure that the right person is paid,” Ishola said. “We have had so many instances where multiple claims are made by different individuals, sometimes even by people falsely reporting a contributor as deceased.”
Citing a shocking example, he narrated a case where a man declared dead was discovered to be alive during the PFA’s routine verification visit, despite his wife already processing claims. “When they knocked on the door, it was the ‘dead’ man that came out,” he recalled, highlighting the extent of the fraud risks facing the system.
He added that PFAs are required to sign indemnity agreements with the commission, meaning they would bear the financial burden if benefits are wrongly paid.
“So it’s not about delaying families unnecessarily. It’s about getting it right,” he noted.
The PenCom official also advised contributors to be deliberate about choosing their next of kin, warning that vague or conflicting NOK records often contribute to disputes and delays in the event of death.
“We always say, choose someone close to you — someone who will be reachable and dependable. It makes a huge difference during claims processing,” he said.
The commission reaffirmed its commitment to streamlining pension access, adding that from June 2025, PFAs will independently handle approvals for most retirement benefit applications. However, death benefits and certain exceptional cases will still require regulatory oversight due to their sensitivity.
In his welcome address, the Managing Director/Chief Executive Officer of Crusader Sterling Pensions, Mr Rotimi Adebiyi, announced that the firm had become the first Pension Fund Administrator in Nigeria to surpass the N10 unit price mark on its Retirement Savings Account Fund II.
“CPL continues to set industry standards,” Adeniyi said. “Our RSA Fund II recently surpassed the N10 price mark, making us the only PFA in Nigeria to achieve this noble feat.”
RSA Fund II is the default investment fund for active contributors below 50 years under Nigeria’s Contributory Pension Scheme. The unit price milestone reflects long-term investment growth and consistent fund management performance, positioning CPL as a leading player in the competitive pension landscape.
CPL’s performance comes amid broader asset growth in the pension industry, which rose by 22.65 per cent year-on-year to N22.51tn as of December 2024.
Crusader Sterling Pensions also reported a 28 per cent growth in its total assets under management, climbing from N520.7bn to N720.1bn by the end of last year, outperforming the industry average.
The 2025 Stakeholders’ Forum was themed ‘Future-Ready Pensions: Innovating for a Secure Tomorrow.’
