3.5 million retirement accounts lack regular funding – PenCom
- State governments, private employers indicted
- 5.1 other accounts not properly documented
The National Pension Commission has said that a total of 3.5 million retirement savings accounts (RSAs) were irregularly funded as at the end of 2020 financial year.
This arose from employers’ failure to remit monthly pension contributions which were either made occasionally or not made at all.
According to the National Pension Commission (PenCom) in its 2020 Annual report, majority of these irregularly funded accounts belong to employees of State Governments and private sector organizations.
In the same report, the Commission also said 5.1 million retirement savings accounts with Pension Fund Administrators (PFAs) had incomplete documentation as of the end of 2020.
There are indications that the incomplete document could prevent holders of Retirement Savings Account (RSA) in country from having access to their pension benefits.
PenCom, said, “A review of the monthly reports of the pension operators revealed that 5.1 million RSAs had incomplete documentation as at Q4 2020.
“Nonetheless, the engagement of agents to conduct data recapture on behalf of all the PFAs was expected to address the issue and validate all relevant documents under the profile of individual RSA holders.”
The commission said only 9,215,788 workers had RSAs as of the end of 2020.
PenCom and the Pension Funds Operators Association of Nigeria have continued to enlighten workers on the need to do data recapturing under the Contributory Pension Scheme so as to have accurate data with their PFAs.
The commission said contributors should update their information with their PFAs, notify the operators of any change that could have occurred in their details since the time they joined the scheme.
Some of the issues were that some contributors had irregular names, change of address and multiple PFAs, among others.
PenOp said it was important for the contributors to avail the PFAs of their National Identification Number, which it is now a mandatory requirement to access pension benefits.