PenCom recovers N12.93billion unremitted contributions

Mariam Abeeb

The National PenCom Commission (PenCom) has disclosed that its recovered a total sum of N25.45 billion unremitted contributions was recovered from defaulting employers between 2012 and 2023.
This was made known by the Head, Corporate Communications Department, PenCom Mr. Ibrahim Buwai, during his remark at the Annual General Meeting (AGM) of the Finance Correspondents Association of Nigeria (FICAN)in Abuja.
He explained that the recovery included the principal sum of N12.93 billion as well as penalties which amounted to N12.52 billion.
He added that under the Pension Reforms Act, which remained the provision for enforcement, late remittances attract penalties and attract interest of two per cent monthly.
He cautioned employers, stressing that non-compliance is costlier than adherence to regulations. She emphasized that late remittances incur penalties and interest charges calculated at a rate of 2 percent per month.
He noted that a detailed company schedule accompanying contributions, Pension Funds Custodians (PFCs) cannot appropriately allocate funds to RSA holders. PenCom has previously issued directives urging concerned parties to rectify these discrepancies.
He assured stakeholders that PenCom remains steadfast in adhering to stringent guidelines. She disclosed that the Commission rigorously monitors investment activities through daily valuation reports, swiftly addressing any deviations or non-compliance.
“From the inception of these recovery agents programmes in 2012 to 31st December, 2023, the principal contributions that were recovered were about N12.9 billion while the penalty was about N12.5 billion. So, you can see that it’s almost 50-50. All this is what has been recovered from employers and paid into RSAs.
“The good thing is that all this penalty and principal goes into the individual RSA individual account. Nobody takes a penny, not PFAs, not PenCom, nobody. All these money recovered were for RSA holders and it goes into RSA. What you can help us by way of employers is that it is not in their interests not to remit because it is cheaper to remit than not to remit.
“We have the issue of employers not remitting. Second issue, employers remitted but if there is no company schedule that shows the employers that these monies belong to, PFCs cannot apportion to RSA holders.
“We are not happy and that is why in 2023, we put out a statement on it and on our website, we have a long list of remittances that we saw were uncredited, calling on the people concerned to come forward and make sure the remittances are done,” he stated.