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Chuks Udo Okonta
The National Pension Commission (PenCom) has expressed worries over the irregular funding of Retirement Savings Accounts (RSAs) by employers as out of the 9.27 million accounts as at December 31, 2020, 3.5 million had funding issues.
PenCom stated this in a report obtained by Inspenonline, stressing that a total of 3.5 million RSAs were irregularly funded during the year, as monthly pension contributions were either made occasionally or not made at all.
The pension industry regulator maintained that majority of these irregularly funded accounts belong to employees of State Governments and private sector organisations.
PenCom noted that as at 2nd quarter 2021, out of the nine states remitting both employers and employees pension contributions, FCT; Osun; Delta; Ekiti; Ondo and Anambra have backlog of remittance.
On how states have fared as regards embracing the Contributory Pension Scheme (CPS), it said: “As at Q2: 2021, twenty-five (25) States of the Federation had enacted pension laws on the CPS, while seven (7) States were at the bill stage. Out of the five (5) States operating other pension schemes, four (4) States have adopted the Contributory Defined Benefits Scheme (CDBS), while one, (Yobe State) operates the Defined Benefits Scheme (DBS),” PenCom said.
As part of driving compliance, the Commission noted that it carried out sensitization workshops, capacity-building programs, and stakeholder engagement meetings during the quarter under review, adding that the activities include: A meeting with the Executive Governor of Plateau State to review the steps taken by the State towards implementing the CPS.
It said interactive meeting was also held with the newly constituted Bayelsa State Technical Committee on the Implementation of the CPS. The meeting was to guide the Committee on the road map to implementing the CPS in the State.
Engagement meetings with the Executive Governors of Edo, Ondo and Osun States to drive the implementation of the CPS in these States, it said, adding that an enlightenment workshop on the RSA Transfer System for employees of the National Orientation Agency, Ilorin. Was also organised.
Continuing PenCom said it had a virtual sensitization/enlightenment workshop on the workings of the CPS for the Management and staff of the Livestock Feeds Plc, adding that a two-day workshop for Pension Desk Officers of the six Area Councils and Local Government Education Authorities of the Federal Capital Territory (FCT), Reconciliation Committee, and the FCT Area Council Pension Board staff, was organised and that the workshop guided the participants on how to detect incorrect/shared PINs in pension contribution schedules.
It maintained that an enlightenment programme on the workings of the RSA Transfer System (RTS) was held for the Management and staff of thirteen (13) Ministries, Departments and Agencies (MDAs) of Ekiti State, adding that the programme apprised participants on the workings of the RTS as well as the importance of Data recapture.
The pension regulator submitted that an enlightenment programme on the CPS, was organised for the Management and staff of the Federal Character Commission, National Human Rights Commission, Lafarge Africa Limited, and the Senior Staff Association of Chemical & Non- Metallic Products Limited and the programme touched on the role/responsibilities of the employees, employers and the modes of withdrawal, amongst others.
