PenCom Recovers N25.4bn Unremitted Pension Contributions
By Patience Ikpeme
In a significant development, the National Pension Commission (PenCom) has successfully recovered a substantial sum of N25.4 billion from employers who had failed to remit pension contributions for their employees.
This revelation came to light during the 2024 Congress of the Finance Correspondents Association of Nigeria (FICAN) in Abuja, where the Director General of PenCom, Aisha Dahir-Umar, shared the noteworthy achievement. Speaking on behalf of Dahir-Umar, Mr. Ibrahim Garba Buwai, the Director of Corporate Communications at PenCom, elucidated that since the initiation of the recovery agent programs in 2012 until December 31, 2023, the Commission has been relentless in its efforts to recover these outstanding contributions.
Out of the total amount recovered, N12.9 billion constituted principal contributions, while N12.5 billion comprised penalties imposed on defaulting employers. Dahir-Umar underscored that all retrieved funds have been promptly directed into the Retirement Savings Accounts (RSAs) of the respective pension contributors.
Highlighting the repercussions of neglecting pension remittances, Dahir-Umar cautioned employers, stressing that non-compliance is costlier than adherence to regulations. She emphasized that late remittances incur penalties and interest charges calculated at a rate of 2 percent per month.
Moreover, Dahir-Umar shed light on the issue of uncredited remittances, stating that without a detailed company schedule accompanying contributions, Pension Funds Custodians (PFCs) cannot appropriately allocate funds to RSA holders. PenCom has previously issued directives urging concerned parties to rectify these discrepancies.
Addressing concerns about the investment of pension assets in infrastructure, Dahir-Umar assured stakeholders that PenCom remains steadfast in adhering to stringent guidelines. She disclosed that the Commission rigorously monitors investment activities through daily valuation reports, swiftly addressing any deviations or non-compliance.
Furthermore, Dahir-Umar clarified PenCom’s role in investment decisions, emphasizing that the Commission establishes general guidelines and regulations, while Pension Fund Administrators (PFAs) evaluate investment opportunities based on compliance.
The Director General reiterated that the N18 trillion pension assets belong to RSA holders and retirees, emphasizing that these funds are diligently managed to fulfill PenCom’s fiduciary responsibility. She underscored the Commission’s primary objective of ensuring the availability of funds for retirement benefits when due.
With 10.1 million contributors, the meticulous management of the N18.1 trillion pension assets remains paramount to PenCom and industry operators, ensuring the security and welfare of RSA holders and retirees alike.
