By Melvin Onwubuke
The National Pension Commission has made huge progress in ensuring compliance among employers regarding pension contributions.
According to nairametrics, PenCom has successfully retrieved a total N25.45 billion in unremitted pension contributions, from defaulting employers between the years 2012 and 2023.
This was disclosed by Mr. Ibrahim Buwai, the Director of Corporate Communications at PenCom, during the Finance Correspondents Association of Nigeria Annual General Meeting this weekend.
This substantial figure according to him, engirds the principal contributions of N12.93 billion and penalties accruing to N12.52 billion in about 11years.
The PenCom director pointed out the significance of the PenCom Reforms Acts, noting that the legislation mandates penalties for late remittances, accruing interest at a rate of 2% per month.
Buwai said “From the inception of these recovery agents’ programs in 2012 to December 31, 2023, the principal contributions that were recovered, were about N12.9 billion while the penalty was about N12.5 billion.
“So, you can see that, it’s almost 50-50. All this, is what has been retrieved from employers and paid into RSAs.”
He added “The good thing is that, all the penalties and principal goes into the individual RSA account. Nobody takes a penny, not PFAs, not PenCom, nobody. All this money. All this money recovered, were for RSA holders and it goes into RSA.
” What you can help us by way of employers is that, it is not in their interests not to remit because it is cheaper to remit than not remit.”
The painstaking efforts of PenCom in recovering unremitted PenCom contributions shows its commitment to protect employee’s retirement savings and ensuring employers adhere to regulatory obligation.
