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The short answer
When an RSA holder dies, two separate payments can arise: the group life insurance benefit the employer must maintain, which goes to the named beneficiary, and the RSA balance, which the PFA pays to the personal representative on a will admitted to probate or letters of administration. The group life cover must be at least three times the employee's annual emolument.
Two payments, two routes
Families often expect one cheque and get confused when two processes start. KPMG's summary of the Pension Reform Act 2014 sets out both:
| Group life insurance | RSA balance | |
|---|---|---|
| Who arranges it | The employer, through an insurer | The PFA |
| Minimum amount | Three times the employee's annual emolument | Whatever is in the RSA |
| Who is paid | The named beneficiary | The personal representative of the estate |
| Key document | Insurer's claim requirements | Will admitted to probate, or letters of administration |
| Who to contact | The employer's HR team | The deceased's PFA |
Group life applies to someone who dies while employed. A retiree on programmed withdrawal still has an RSA balance, which follows the second route. A retiree on annuity has bought income from an insurer, so what is payable depends on the annuity contract.
Worked example
Example only. An employee earns a total annual emolument of ₦3,600,000 and has ₦6,200,000 in the RSA when she dies in service.
- Group life: at least 3 × ₦3,600,000 = ₦10,800,000, paid by the insurer to her named beneficiary.
- RSA: ₦6,200,000 plus any returns up to payment, paid by the PFA to the administrator or executor of her estate, who distributes it under the will or the law of intestacy.
- Together the family could receive at least ₦17,000,000, but on two timetables.
Claiming the RSA balance
- Notify the PFA in writing of the death, quoting the RSA PIN.
- Obtain a grant of probate (if there is a will) or letters of administration (if there is not) from the probate registry of the relevant state High Court.
- Submit the claim to the PFA with the documents it asks for. PFAs commonly request a death certificate, the grant, IDs and bank details of the administrators, and the deceased's RSA details; ask the PFA for its own checklist rather than relying on a general list.
- The PFA processes the claim and, where PenCom approval is required, forwards it.
- Payment is made to the personal representative, not directly to children or relatives named as next of kin.
Claiming group life
- Contact the employer's HR team, which holds the policy and the beneficiary nomination.
- The insurer will set out its own claim documents; a death certificate and evidence of employment are typical.
- If the employer did not take out the policy, it remains liable under the Act. Raise it with the employer in writing and, if needed, with PenCom; see complaining to PenCom.
Special cases
The deceased had retired
For a retiree on programmed withdrawal, the monthly payments stop and the remaining RSA balance becomes payable to the estate through the same probate or letters of administration route. For a retiree on annuity, contact the insurer that pays the annuity: whether anything is due depends on the policy, for example whether it had a guaranteed payment period.
The deceased had more than one RSA
People who changed jobs before data recapture sometimes ended up with two accounts. Ask each PFA the family suspects, and ask the employer's payroll records which PFA received contributions in each period, so no balance is left behind.
The family disagrees
Where relatives dispute who should administer the estate, the court decides before any grant is issued. The PFA will not pay until a valid grant is presented, so mediation or early agreement on administrators is usually the fastest route to payment for everyone.
How long it takes
The sources checked do not set a fixed number of days for death benefit payments. The slowest step is usually the court grant of probate or letters of administration, which depends on the state registry and on whether the family agrees on administrators. Starting that application early, while the PFA verifies the account, saves months. If the PFA has all documents and goes quiet, ask in writing for the status and expected payment date.
What to check first
- The deceased's PFA and RSA PIN (payslip, statement or employer).
- Whether they died in service (group life applies) or in retirement.
- Whether there is a will.
- Whether the RSA data was recaptured; PenCom's 2023 FAQs say benefits cannot be accessed on an RSA registered before 1 July 2019 until it is, so ask the PFA how it handles this for a deceased holder. See RSA data recapture.
Where Pryme fits
Administrators often need to show what the estate received and paid. Any Pryme customer can generate a verifiable statement or receipt through Pryme's partnership with VerifyDoc.ai, which others can check is unaltered.
Questions people ask
How do I claim my late husband's pension in Nigeria?
Notify his PFA, obtain probate or letters of administration, and submit the claim with the PFA's checklist. Separately, contact his employer about the group life insurance if he died in service.
Does next of kin get RSA money directly?
Not for the RSA balance. The PFA pays the personal representative on a will admitted to probate or letters of administration. The group life benefit goes to the named beneficiary.
How much is group life insurance for employees in Nigeria?
The Pension Reform Act 2014 requires employers to maintain cover of at least three times the employee's annual emolument.
How long does a pension death benefit claim take?
No fixed period is set in the sources checked. Probate or letters of administration is usually the slowest step, so start it early.
Sources
- KPMG Nigeria newsletter, The Pension Reform Act 2014 (Jul 2014) · accessed Oct 2026
- PenCom, Frequently Asked Questions, 2023 edition (PDF) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.