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Monday, July 22, 2024

PENCOM recovers N25.4 billion in unremitted contributions

PenCom's Vigorous Efforts Yield Significant Returns During FICAN Congress

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The National Pension Commission (PenCom) has announced the successful recovery of N25.4 billion from employers who had defaulted on remitting pension contributions for their employees. This notable achievement was unveiled during the 2024 Congress of the Finance Correspondents Association of Nigeria (FICAN) in Abuja, where PenCom’s Director General, Aisha Dahir-Umar, shared insights into the Commission’s concerted efforts.

Representing Dahir-Umar at the event, Mr. Ibrahim Garba Buwai, PenCom’s Director of Corporate Communications, elucidated on the Commission’s relentless pursuit of outstanding contributions since the inception of its recovery agent programs in 2012. Out of the total recovered sum, N12.9 billion constituted principal contributions, with an additional N12.5 billion comprising penalties imposed on defaulting employers. All retrieved funds were promptly channeled into the Retirement Savings Accounts (RSAs) of the respective pension contributors.

Dahir-Umar underscored the gravity of non-compliance with pension remittance regulations, cautioning employers about the costlier repercussions of neglect. Late remittances, she emphasized, incur penalties and interest charges calculated at a rate of 2 percent per month.

Addressing concerns regarding uncredited remittances, Dahir-Umar highlighted the necessity of detailed company schedules accompanying contributions to facilitate accurate allocation by Pension Funds Custodians (PFCs). PenCom has issued directives urging stakeholders to rectify these discrepancies.

Responding to queries about pension asset investment in infrastructure, Dahir-Umar reassured stakeholders of PenCom’s stringent monitoring and adherence to guidelines. The Commission maintains rigorous oversight through daily valuation reports, swiftly addressing any deviations or non-compliance.

Clarifying PenCom’s role in investment decisions, Dahir-Umar emphasized the Commission’s establishment of general guidelines and regulations, while Pension Fund Administrators (PFAs) evaluate investment opportunities based on compliance.

Emphasizing the fiduciary responsibility towards RSA holders and retirees, Dahir-Umar reiterated that the N18 trillion pension assets are diligently managed to ensure availability for retirement benefits when due. With 10.1 million contributors, the meticulous stewardship of these assets remains paramount to PenCom and industry operators, safeguarding the welfare of RSA holders and retirees.

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