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We’ve Recovered N422m from Employers who Defaulted on Pension Remittance – National Pension Commission

The National Pension Commission (PenCom) has announced in its first-quarter report for 2022, that it has recovered N422.34 million from defaulting employers who failed to remit pension contributions by their employees to respective pension fund administrators (PFAs).

Though this is 30.6 percent lower than the commission’s recovery to the tune of N608.55 million in the first quarter of the preceding year, the agency revealed that the amount comprises N124.89 million principal contribution and N295.45 million penalty.

PenCom said the sum was recovered from 23 defaulting employers during the quarter under review, adding that six defaulting employers have been presented for appropriate legal action.

It read; “Following the issuance of demand notices to defaulting employers whose pension liabilities were established by the recovery agents (RAs) appointed by the commission, the sum of N422.34 million representing principal contribution (N124.89 million) and penalty (N295.45 million) was recovered from 23 defaulting employers during the quarter under review.

“Meanwhile, six defaulting employers have been recommended for appropriate legal action for refusing to remit pension contributions of their employees after all administrative actions to make them comply failed.

“The cumulative pension contributions from inception to the end of the first quarter of 2022 amounted to N7.77 trillion, which is an increase from N7.58 trillion as at the end of Q4 2021.”

While the aggregate pension contributions of the public sector increased from N3.92 trillion in the last quarter of 2021 to N4.02 trillion at the end of Q1 2022., the aggregate pension contributions of the private sector increased from N3.66 trillion in Q4 2021 to N3.76 trillion at the end of Q1 2022.

The total value of pension fund assets as at March 31, 2022 was N13.88 trillion. The amount comprised of N9.81 trillion in RSA’ Active’ Funds (RSA Funds I, II, III and V); N1.10 trillion in RSA Retiree Fund (Fund IV); N1.54 trillion in CPFAs; N1.42 trillion in Approved Existing Schemes. Fund VI Active and Retiree Fund amounted to ?23.16 billion.

Also from January to March 2021, PenCom said it received a total of 11,200 applications from private sector organisations for the issuance of pension clearance certificates (PCCs).

The statement added; “Out of this number, PCCs were issued to 10,541 organizations, while 659 applications were in the approval process as at March 31, 2022.

“The records showed that the 10,541 organizations had remitted a total of N59.39 billion into the retirement savings accounts (RSAs) of their employees, totaling 45,170.”

Employees have also been asked to remit workers’ monthly pension contributions to their retirement savings account (RSA) for the exclusive purpose of providing retirement income.

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