PenCom Recovers N19.29bn Unremitted Pensions

The National Pension Commission says it has recovered N19.29bn monthly pensions deducted by employers from employees’ monthly emoluments but not remitted to the Retirement Savings Accounts with their respective Pension Fund Administrators.

Figures obtained from PenCom’s quarterly report on Tuesday showed that the recovery included unremitted contributions and sanctions.

PenCom also disclosed its plan to take legal action against some of the employees.

The report revealed that following PenCom’s issuance of demand notices to some defaulting employers whose pension contribution liabilities had been established by recovery agents, recoveries and penalties were made.

This brought the total recoveries made from inception to June 30, 2020 to N17.52bn comprising principal contribution of N8.89bn and penalty of N8.63bn.

It also revealed that it recovered N213.07m in Q3, 2020; N553.03m in Q4, 2020; N608.55m in Q1, 2021; and N398m in Q2, 2020.

The PenCom’s Q2, 2021 quarterly report obtained on Tuesday read in part, “Following the issuance of demand notices to defaulting employers whose pension liabilities were established by the recovery agents, the sum of N398m representing principal contribution of (N243.4m) and penalty of (N154.61m) were recovered from 31 defaulting employers during the quarter under review.

“Meanwhile, 19 defaulting employers have been recommended for appropriate legal action.”

The Pension Reform Act 2014 mandates employers with at least three employees to have pensions for their workers.