Hi Friends,
I need your help. My dad retire from the police force after 35 years of dedicated service to his father land. He did all the necessary paper thing  in other to receive his gratuity from the federal Govt. As God may have it, he received a letter from Nigeria Pension commission that his gratuity has been remitted to his Pension Fund Administrators-PFA, ( about 7.4M), that he should proceed to his PFA and discuss the mode of withdrawal of the money.

My dad was over happy. He has even started making plans as to purchase a small car cause he never had one before.
We waited for the PFA to write to him but nothing happen. he went to their office in Lagos and they asked him to wait. He decided to go to their Abuja office.

This PFA said that their mode of payment will be : That they are entitled to pay him monthly pension for the period of 11 years. that his monthly pension will be 50% of his last salary (N106,000) i.e N53,000 per month. which will amount to N6,996,000 (53 x 12 x 11yrs) after 11 years. That the only money they can give him now is the balance of the money which is N404,000.

Fellow Nigerians, this is injustice as much as i can see it.

~~I know that simple maths will tell us that the future amount of the present value spread out for 11 years considering interest should be more than that.

~~Why should it be that after someone might have suffered for 35 years in active service to his father land, another coporate entity will be making use of his money for business and be giving him little change?

~~Why should such PFA body demand to know when he is expecting to die, is he God?

I wish Seun should published this on the home page. This Country self don tire me!

U need to be able to differentiate between Pension and Gratuity.
Gratuity is the raw cash paid after retirement while Pension is paid monthly for upkeep over some years after retirement.
The 7.4M or so u are referring to might be Pension which strictly must be paid monthly.
Havent u heard of old people queueing and dieing for pension on a monthly basis?

My advice is that he should get back to his work place to demand any gratuity if at all coz thatz d only lump sum that might be paid cash to him.
If u are still not comfortable with the whole stuff, then u can engage the service of a professional or lawyer to take the issue up.

Cheers.

@poster

I can tell you that the computation is wrong

Now there is what is called the lump sum. This replaces the gratuity. The bench mark for that is 25% of your total money. Whatever computation that would be made is after the deduction of this lump. One could chose to go for a programmed withdrawal or purchase annuity.

You can reach me on pages@mail.com for me to through more light on this and also how your father should go about handling the case

Thanks Friends,

@ abbyode, should he expect another gratuity if this is just for monthly pension?

@ Pages, From your point of view the lumps sum is 25 % of 7.4M which is N1,850,000. Should this be his gratuity?
They (PFA) said the only lumps sum to be given to him will be N404,000. That the rest will be amortised for 11 years

thanks for your replies