RETIREES OVER 60 YEARS ENTITLED TO 50% LUMP SUM PENSION PAYMENT SAYS COURT.

In a landmark judgment, justice Oyebiola Oyewumi of the national industrial court judicial division has ordered ARM pension managers to pay a retiree Mr Maroof Giwa at least 50% lump sum of his pension. Pension managers at the moment pay 25% lump sum to retirees. But Justice Oyewumi said norm be broken for Giwa, considering his age and the life expectancy of male Nigerians as projected by world health organization. The court held that 25% lump sum calculated by ARM pension managers as the claimant’s pension is unlawful. He further said that the 25% withdrawal as clearly stated in the pension reform Act is in respect of retiree who voluntarily retired at age 50. The provision he said is not applicable to Giwa. Maroof Giwa had approached ARM pension managers for his pension benefit withdrawal but was offered 25% by his PFA. He demanded for 50% of the total sum. He argued that he cannot be treated like a retiree who retired voluntarily because he is 60 years.

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