PenCom recoups N608.55m from defaulting employers

The National Pension Commission (PenCom) has said it recovered N608.55m from defaulting employers who deducted their workers monthly emoluments but failed to remit to their Retirement Savings Accounts with their respective pension fund administrators.

Out of this amount, the principal contribution of the workers was N162.3 million, while penalties of N446.17 million were recovered after a demand notice.

PenCom stated this in its first-quarter 2021 report obtained by Ripples Nigeria on Wednesday.

Part of the report reads, “Following the issuance of demand notices to defaulting employers whose pension liabilities had been established by the Recovery Agents, the sum of N608,554,747.59 representing principal contribution (N162,385,260.05) and penalty (N446,169,487.54) was recovered from 25 defaulting employers during the quarter under review.”

The report also showed from January to March 2021, PenCom received a total of 14,741 applications from private sector organisations for the issuance of pension clearance certificates (PCCs).

Out of this number, PCCs were issued to 9,299 organizations while 5,442 applications were being processed.

According to the commission, 9,299 organisations that were issued certificates remitted the sum of N41.9 billion into the RSAs of 163,286 employees.

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“The total pension contributions remitted to the RSAs in the first quarter of 2021 stood at N203.10 billion. Out of this total, the public sector accounted for N115.83 billion or 57.03 percent while the private sector contributed N87.27 billion or 42.9 percent,” the report added.

“The cumulative pension contributions received from both the public and private sectors from inception to the end of the first quarter of 2021, therefore, amounted to N6.91 trillion, up from the N6.70 trillion as at the end of the Q4 2020.”

Meanwhile, a review of the Pencom website by Ripples Nigeria revealed that as of June 28, a total of 20,060 businesses had been given Certificates of Compliance in line with P ension Reform Act 2014 requirements.

According to the PRA 2014, employers are mandated to remit 18 percent of the workers’ monthly emoluments, comprising 10 percent contribution from the employer and eight percent from the employee.

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