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Defaulting employers cough out N17.52bn unremitted pensions — PenCom



PenCom Fines Employers N12.1BN over Unremitted Pension Funds
  • As pension fund assets hits N11.09trn

The National Pension Commission (PenCom) has recovered N17.52 billion from employers who deducted monthly pensions from their workers’ monthly salaries but refused to remit to their Retirement Savings Accounts (RSA) with the respective Pension Fund Administrators (PFAs).

PenCom disclosed this in its second quarter 2020 report which was released on Friday.

The amount consists of principal contribution of N8.89 billion and penalty of N8.63 billion.

Part of the report read, “Following the issuance of demand notices to some defaulting employers whose outstanding pension contribution liabilities had been established by the recovery agents, 16 of the affected employers remitted the sum of N261.33 million representing principal contribution (N152.79 million) and penalty (N108.54 million) during the quarter.

This brought the total recoveries made from inception to 30 June 2020 to N17.52 billion comprising principal contribution of N8.89 billionn and penalty of N8.63 billion.”

The commission stated that during the quarter, there was no application for transfer of contributions from the Nigeria Social Insurance Trust Fund (NSITF). members.

One batch of NSITF lump sum payment application totalling N225,442.72 was however received on behalf of five NSITF members during the quarter ended 30 June, 2020, it stated.

It added that the application was processed and five members’ contributions transferred to their bank accounts.

Consequently, it added, the cumulative sum of N2.94 billion had been paid into the bank accounts of 36,551 NSITF contributors as lump sum/one off payment from inception to June 30.

For the quarter ended June 30, the commission said it processed monthly pension payments totalling N62.25 million in respect of 3,629 NSITF pensioners.

As of June 30, it said the total pension payment to NSITF pensioners amounted to N4.73 billion.

The commission said it reviewed the request for the payment of attributable income to eligible NSITF members and granted a “no objection” for payment of N2.92 billion to 165,954 eligible NSITF members whose NSITF contributions were refunded to their RSAs or bank accounts as of December 2018.

Meanwhile, PenCom also revealed in the report that total value of pension fund assets based on unaudited valuation reports grew from N10.33 trillion as at March 2020 to N11.09 trillion as at June, 2020, representing a growth of 7.36 per cent.

“The growth was mainly due to market valuation of quoted equities,” it stated.

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