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Leadway pays N175bn to 85,000 retirees

Lagos, July 10, 2023: Leadway Pensure has paid not less than N175 billion in retirement and terminal benefits to over 85,000 of its customers since the inception of the Contributory Pension Scheme (CPS) in 2004.

Mr Kelechi Nwabalogu,Team Lead, Customer Relationship Management Department of Leadway Pensure said at a media training in Lagos.

Nwabalogu said that Leadway Pensure shareholders’ funds stood in excess of N8.6 billion, higher than the required N5 billion by the National Pension Commission (PenCom).

According to him, Leadway Pensure was formed by a consortium of three finance service organisations namely; Leadway Holdings Ltd., MBC Securities and Prestige Assurance Plc.

He noted that in terms of quality assurance, PenCom had adjudged the PFA as one of the best in the industry, which signifies its quality service delivery and best in class corporate governance.

Speaking on the 25 per cent Retirement Savings Accounts (RSA) balance for mortgage approved by PenCom, Nwabalogu stated that the company was committed to providing financial support to its RSA holders by accessing the fund and becoming house owners before retirement.

He noted that RSA holders must, however, meet the conditions and guidelines stipulated by PenCom to access the fund.

“Some of the conditions are that; the RSA of the applicant shall have both employer and employee’s mandatory contributions for a cumulative minimum period of 60 months.

“An offer letter for the property duly signed by the property owner and verified by the mortgage lender.

“The application for equity contribution for residential mortgage shall be in person and not by proxy, among others,” he said.

PenCom, in September 2022, approved a guidelines for RSA holders  to access a residential mortgage through their RSAs, in line with Section 89 (2) of the Pension Reform Act 2014 (PRA 2014).

The commission’s guideline states that RSA holders can use 25 per cent of their RSA balance toward the payment of equity for a residential mortgage.

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