ONE of the major challenges threatening the Contributory Pension Scheme, CPS, introduced in 2005 following the Pension Reforms, PRA, 2004, is non-remittance of deducted contributions by employers.
Speaking to Vanguard, Secretary/Legal Adviser, National Pension Commission, PenCom, Mr Muhammed Sani Muhammed, gave insight into how the commission is addressing the issue.
“This goes to the heart of actually what we do at PenCom. Pension contribution is supposed to be remitted to the retirement savings account of the employees at least seven days after payment of salary.
“There are situations where you have employers that don’t do that, but the law says if any employer does not do that, such an employer is liable to pay the un-remitted deduction as well as pay some interests on it”.
Vanguard, May 23, 2018
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