PenCom recovers N553,03m from 19 defaulting employers

Mrs. Aisha Dahir-Umar

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Chuks Udo Okonta

The National Pension Commission (PenCom) has said following the issuance of demand notices to defaulting employers whose pension liabilities had been established by the Recovery Agents (RAs), the sum of N553,033,652.01, representing principal contribution of N382,462,161.65 and penalties of N170,571,490.36 were recovered from 19 defaulting employers in October to December 2020.

PenCom in its fourth quarter 2020 report, noted that the total pension contributions remitted to the Retirement Savings Accounts (RSAs) in the fourth quarter of 2020 stood at N167.74 billion, stressing that out of this total, the public sector accounted for N86.93 billion or 51.81 per cent, while the private sector contributed N80.81 billion or 48.18 per cent.

It maintained that the cumulative pension contributions received from both the public and private sectors from inception to the end of the fourth quarter of 2020, therefore, amounted to N6.70 trillion, up from the N6.54 trillion as at the end of the third quarter 2020, representing a growth of 2.45 per cent.

The pension sector regulator said PFAs registered a total of 68,827 RSAs during the quarter under review, adding that this brought the cumulative RSA registrations from inception to 31 December 2020 to 9,215,788.

The pension industry, it said recorded a net marginal growth of 0.72 per cent (66,704) in schemes membership during the quarter under review, rising from 9.20 million contributors as at the end of the preceding quarter to 9.27 million as at Q4 2020, stressing that the growth in the industry membership was driven by the RSA Scheme, which had an increase of 68,749 registered contributors.

It noted that however, membership of the Closed Pension Fund Administrator (CPFA) Schemes declined by 2,045 to 14,926 while the Approved Existing Schemes (AESs) membership remained unchanged at 40,951 as at Q4 2020.

The Director-General, PenCom, Mrs. Aisha Dahir-Umar, said the implementation of the Contributory Pension Scheme (CPS) has greatly impacted the economy, stressing that the major visible areas of this impact are the economic and social spheres and that the pension assets, is slowly but surely changing Nigeria’s financial landscape and by extension, the course and pace of our socio-economic development.

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