Nigeria: Pencom Directs PFAs, PFCs to Suspend Heirs Life, Great Nigeria's Fresh Annuity Processing

22 May 2025
This Day (Lagos)
By James Emejo

The National Pension Commission (PenCom), has directed all Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) not to process new Retiree Life Annuities (RLAs) from Heirs Life Insurance Limited and Great Nigeria Insurance Plc, until further notice from the commission.

PenCom conveyed the development in a letter dated May 7, 2025, and signed by its Head, Benefits and Insurance Department, Obiora Ibeziako.

The directive followed the immediate suspension of both insurance companies by National Insurance Commission informing the Commission (NAICOM), which barred them from underwriting new (RLAs).

RLA refers to a financial product offered by life insurance companies that converts a lump sum from a retiree's Retirement Savings Account (RSA) into a regular income stream, typically monthly or quarterly, for the rest of the retiree's life.

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The product allows retirees to ensure steady income stream after retirement, similar to a pension.

Reports alleged that the companies had been subject to scrutiny and complaints regarding claim settlements.

NAICOM has a zero-tolerance stance on non-payment of claims and has taken action against some other companies for failing to meet their obligations in recent times.

The letter read, "The National Pension Commission (the Commission) is in receipt of letters referenced NAICOM/TD/ASU/RIC094/VOL2/043 and NAICOM/TD/ASU/RIC094/VOL2/089, dated 5 May 2025 from the National Insurance Commission informing the Commission of the immediate suspension of Heirs Life Insurance Limited and Great Nigeria Insurance PLC from underwriting new Retiree Life Annuities (RLAs).

"Accordingly, all Pension Fund Administrators and Pension Fund Custodians are hereby directed not to process new Retiree Life Annuities from the aforementioned RLA providers until further notice from the Commission."

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