PenCom Recovers N28.24bn From Defaulting Employers
The National Pension Commission (PenCom) has announced the recovery of N28.24bn from defaulting employers since the inception of its recovery initiative in June 2012, as part of its ongoing efforts to enforce compliance with the provisions of the Pension Reform Act.
According to the Commission’s Q3 2024 report, released on Tuesday and seen by THE WHISTLER, the recovered amount includes N13.91bn in unremitted pension contributions and N14.33bn in penalties imposed on non-compliant employers.
During the third quarter of 2024 alone, PenCom reported recovering N272.52m from 23 employers. This figure comprises N106.87m in principal contributions and N165.63m in penalties.
The commission also revealed that legal proceedings have been initiated against four employers who failed to comply after repeated engagements.
“To enhance the effectiveness of the recovery exercise, the Commission increased the number of Recovery Agents (RAs) from 25 to 41,” the report stated, adding that it had also organized a workshop to train the 16 newly appointed agents to ensure they are well-equipped for enforcement duties.
In the same reporting period, PenCom processed and issued 5,424 Pension Clearance Certificates (PCCs) to private-sector organizations that met the requirements of the Pension Reform Act. The certificates are prerequisites for companies wishing to do business with the federal government.
The Commission noted that N24.09bn was remitted into the Retirement Savings Accounts (RSAs) of 69,552 employees as a result of these certifications. However, the number of PCCs issued in Q3 represents a significant 81 per cent decline compared to the 13,047 PCCs issued in Q2 2024.
PenCom attributed the decrease to the fact that many employers had already obtained their clearance certificates earlier in the year, thereby reducing the volume of fresh applications in Q3.
The report also highlighted developments regarding the Nigeria Social Insurance Trust Fund (NSITF) scheme. PenCom disclosed that it received 13 batches of transfer applications from Trustfund Pensions Limited, representing 86 NSITF members, seeking to move N4.54m into their RSAs.
Following a review, N4.09m was approved and transferred to the respective RSAs of the applicants across various Pension Fund Administrators (PFAs), in line with regulatory requirements.
Additionally, the Commission processed and paid N392,244.91 in NSITF benefits to 13 contributors and approved the payment of N33.28m in monthly pensions to 1,837 NSITF pensioners for the quarter under review.
Cumulatively, from 2006 to date, PenCom said it has facilitated N5.60bn in pension payments to NSITF pensioners.
PenCom reiterated its commitment to fostering transparency, compliance, and sustainability in the Nigerian pension industry.
The Commission emphasized that its enforcement activities are essential to protecting employees’ retirement savings and ensuring that employers fulfill their statutory obligations.
With continued efforts to strengthen its oversight and expand enforcement capabilities, the Commission said it is poised to further improve compliance and safeguard pension assets across the country.
PenCom Recovers N28.24bn From Defaulting Employers is first published on The Whistler Newspaper
