PenCom slams N12.09bn fine on delinquent firms
By Patience Ikpeme
Defaulting companies have been fined a total of N12.09 billion, along with a further N12.440 billion in principal contributions recouped by PenCom, bringing the total employer payment to N24.5 billion for failure to remit employee pension contributions as and when due.
This is contained in the 2023 first quarter report of the pension industry released by PenCom.
The report said the penalties were related to infractions committed between June 2012 and 31 March 2023.
PenCom’s recovery agents recouped the N24.5 billion, including penalty fees, which was subsequently moved to Pension Fund Administrators and remitted to the Retirement Savings Accounts of contributors.
During Q1 2023, N384.2 million was recovered from 34 defaulting employers, with the names of four defaulting employers forwarded for prosecution by the Commission Secretariat/Legal Advisory Services Department.
The Pension Act 2014 stipulates that employers who fail to remit contributions within the prescribed time will be liable to a penalty, not less than 2% of the total unpaid contributions for each month the default continues.
