How next-of-kins can access pension benefits

What happens when an employee who has been contributing under Contributory Pension Scheme (CPS) dies before his retirement?

Where an employee who has been contributing under the CPS dies before retirement, his or her benefits shall be paid to the named beneficiary as provided under a will or to the next of-kin. In the absence of such designation, the benefit shall be paid to any person appointed by the Probate Registry as the Administrator of the estate of the deceased.

What constitutes the consolidated benefits of a deceased employee who died in active service?

The consolidated benefits of a deceased employee include his/her accumulated monthly contribution, including any income that accrued from investing the contributions; benefits from Group Life Insurance Policy; and accrued pension benefits.

What is the procedure for accessing the RSA of a deceased employee?

Upon the death of an employee, the employer/Next-of-Kin (NoK) or representative of the deceased, shall notify the PFA, who in turn shall duly notify PenCom. The deceased’s consolidated benefits are, thereafter, paid in bulk to the Executors of his estate or to any person appointed by the Probate Registry as the Administrator of his estate to enable them apply the same in favour of his beneficiaries. The employer should also process the proceeds of the Group Life Insurance Policy and ensure payment by the insurance company to the beneficiaries.

How would the consolidated benefits of an employee who died prior to opening an RSA be processed in favour of his beneficiaries?

For a deceased person who did not open an RSA before his death, the retirement benefits will be processed and paid to the beneficiaries from the Temporary RSA opened for him/her by the employer.

SOURCE: THE NATION