Pension

PenCom recovers N16.37bn outstanding pension contributions from defaulting employers

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Chuks Udo Okonta

The National Pension Commission (PenCom) said total recoveries of outstanding pension contributions and penalty from defaulting employers from inception of the Contributory Pension Scheme (CPS) to September 2019, amounted to N16.37 billion, comprising principal contributions of N8.37 billion and penalty of N8.00 billion.

PenCom stated this in its third quarter 2019 report, adding that these amounts have since been credited to the respective Retirement Saving Accounts (RSAs) of the employees.

“The Commission maintained the services of Recovery Agents (RAs) for the recovery of outstanding pension contributions and penalty from defaulting employers. The RAs were mandated to review the pension records of the employers assigned by the Commission and recover outstanding pension contributions with penalty.

“During the quarter, demand notices were issued to 18 defaulting employers whose pension liabilities had been established by the RAs. This resulted in the remittance of outstanding pension contributions of N364.68 million, representing principal contributions of N146.95 million and penalty of N217.73 million,” it said.

The Commission said it had sustained effort at collaborating with social partners to drive compliance with the provisions of the PRA 2014 by the Organized Private Sector (OPS).

“The Commission in collaboration with the Nigeria Employers’ Consultative Association (NECA), organised interactive sessions with the OPS on the “Current Developments and Challenges” in the implementation of the CPS. The interactive sessions were held in September, 2019 at Lagos, Port Harcourt, Abuja and Kano,” it said.

The pension regulator posited that the interactive sessions, provided a platform for the Commission to interact with the OPS on the implementation of the CPS, stressing that the sessions also provided an opportunity to update stakeholders on recent developments, address concerns, clarify issues and discuss the expectations of the contributors, with a view to improving compliance with the provisions of the PRA 2014. Furthermore, the Commission obtained valuable feedback form the OPS on the implementation of the CPS during the sessions, it stated.

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