The National Pension Commission in a circular to all Pension Fund Administrators (PFAs) has directed all PFAs to stop the payment of additional death benefit claims to legal beneficiary/beneficiaries without its approval.
The Circular, which was sighted by PensionTalk, directed all PFAs to forward such death benefit claims to PenCom which will grant approval before such payment is made.
The Commission noted in the circular that in a bid to strengthen the Death Benefits payment process, it becomes imperative that such directive be issued noting increase in Death Benefits payment that do not meet its payment standard.
The new Circular supersedes an initial one issued on 16 May 2013.
All PFAs have been directed to comply starting from 1 December 2020.
Download the Circular here: CIRCULAR-ON-CESSATION-OF-PAYMENT-OF-DEATH-BENEFIT