WHERE’S MY PENSION MONEY?

Long story, but briefly, I processed my pension, I got the 1/3 and the 2/3 to be taken monthly, which is only P1,000.

I resigned from work in 2007 for further studies in the UK but the college was bogus. So I had no job until I returned in September 2018. I’m jobless and the chances of getting any work are very low. I was a teacher.

I had written to BPOPF and to NBFIRA requesting the full amount of the 2/3 but it was refused. I live with my kids, who each earn less than P7,000 and pay rent of P3,000 and a grand daughter who attendeds school. I have no house of my own. The money would take me out of poverty and give me a decent life. Is there any where I can go for intervention?

Unfortunately, this is how pension schemes work. If you visit the BPOPF web site (I’ll send you the link), it says that when a member retires, the pension fund member can get one third of his or her benefit which is tax free but the remaining two thirds must be used to “purchase an annuity from an approved insurance of his/her choice”. That annuity will pay you an amount every month for the rest of your life, in your case P1,000.

It’s important to understand that pension schemes aren’t saving schemes like you might get from a bank, where you can withdraw any or all of the money you saved when you want it. Pension schemes are there to give you an income when you retire. The only exception is that you are allowed to take one-third in cash on retirement. You can use that for any purpose you like but the smart move is to use it to pay off any debt you might have, maybe finish a building project or perhaps even use it as start-up capital for a new business. Something useful that will help your finances for the rest of your life.

Sadly, the remaining two-thirds is protected and no matter how much you ask, the law forbids your pension provider from changing that.