The National Pension Commission (PenCom) has recovered over N25.42 billion in principal contributions and penalties under the Contributory Pension Scheme (CPS) for the period between 2012 and December 2023.
According to the breakdown, the Commission recovered unremitted pension contributions of about N12.9 billion in the last decade, while the total fines on defaulters amounted to about N12.5 billion during the period under review.
Director General of the Commission, Aisha Dahir-Umar, said all the recovered funds have been credited to the respective individual Retirement Savings Accounts (RSAs) to ensure that workers enjoy their entitled retirement benefits.
The Director General, who disclosed this at the 2023 Annual General Meeting (AGM) of the Finance Correspondents Association of Nigeria (FICAN) in Abuja, said under the Pension Reforms Act, which remains the enforcement regulations, late remittances attracted not only penalties but also interests of two percent monthly on the amount involved.
Represented on the occasion by PenCom’s Head of Corporate Communications Department, Ibrahim Buwai, the Director General, assured the public of the safety and security of the pension funds.
She said notwithstanding the challenges posed by non-remittances and uncredited contributions, the Commission would not relent in enforcing compliance by contributing organisations and safeguarding the interests of all RSA holders.
Dahir-Umar, who acknowledged the challenges posed by millions of employers in terms of prompt remittances of employees’ contributions, also underlined the important role of RSA holders in monitoring remittances and encouraged them to report any discrepancies to PenCom for immediate action.
She also stated that the CPS assets, currently in the region of about N18.1 trillion, had not only enhanced workers’ retirement status but also effectively addressed the inadequacies of the old pension system that left many retirees in penury.
Further highlighting the robustness of the CPS, the PenCom boss said the N18.1 trillion in pension assets belongs to over 10.1 million contributors, which underscores the scheme’s transparency and accountability, noting that the pension assets are not just figures but represent the hard-earned savings of contributors and retirees.
In acknowledging the positive media engagement and reportage of PenCom’s activities, Dahir-Umar said the Commission is fully committed to transparency and effective management of pension funds, saying that continuous partnership with the media would be maintained to bridge the information gap and dispel misconceptions about the CPS.
On public concerns about investing pension funds in the nation’s infrastructure development, the Commission’s Chief Executive explained that strict guidelines are in place to safeguard pension assets, adding that direct investment in infrastructure is prohibited.
She reiterated that investment decisions are made by Pension fund managers based on stringent regulations set by the Commission in its efforts to ensure the safety and efficiency of pension funds, while also seeking to promote financial literacy and retirement planning among Nigerians going forward.