Disengaged Workers Withdraw N201bn From Pension Fund – PenCom
No fewer than 466,812 workers who were disengaged from their jobs have withdrawn N201.22bn from their Retirement Savings accounts, amounting to a quarter of their total savings as of the end of first quarter of 2023.
Figures from the National Pension Commission (PenCom) disclosed on ‘Withdrawal of 25 per cent from RSA balances’ from its first quarter report for 2023.
In the report, PenCom said N12.72bn was withdrawn by 13,126 job losers in Q1, 2023, in addition to N188.51bn withdrawn by 453,686 job losers from inception till the end of 2022.
“The department granted approval for the payment of N12.72bn (being 25 per cent of their RSA balances) to 13,126 RSA holders under the age of 50 years, who were disengaged from employment and unable to secure another job within four months,” it stated.
PenCom said it continued to maintain the services of recovery agents for the recovery of unremitted pension contributions and penalties from defaulting employers.
Demand notices were issued to defaulting employers whose pension liabilities were established by the recovery agents, it said.
During the quarter, it disclosed that N384.28m comprising principal contributions (N193.06bn) and penalties (N191.22m), was recovered from 34 defaulting employers.
Meanwhile, it added, four defaulting employers were forwarded to the commission secretariat/legal advisory services department for prosecution.
“From the commencement of the recovery exercise in June 2012 to 31 March 2023, a total sum of N24.53bn comprising of principal contributions (N12.44bn) and penalties (N12,09bn) was recovered from defaulting employers,” it stated.
PenCom said the total pension contributions remitted to individual RSAs in Q1, 2023 stood at N225.49bn. Out of this total, the public sector accounted for N124.7bn or 55.3 per cent, while the private sector contributed N100.79bn or 44.70 per cent.
The cumulative pension contributions from inception to the end of the first quarter of 2023 amounted to N8.7tn.
