Monthly Pension Contributions: Commission recovers N24.5bn from employers

The National Pension Commission (PenCom) has recovered over 24.5 billion Naira, (N24,533,339,305.09) from defaulting employers who failed to comply with the provisions of Pension Reform Act 2014, which makes monthly pension contributions mandatory.

This was disclosed by the Commission at the 2023 Journalists’ Conference in Abuja, Nigeria.

The stated amount was released from the commencement of the recovery exercise, which spanned from June 2012 to 31 March 2023, through the whistleblowing mechanism introduced by PenCom to encourage the general public, especially private sector employees to report defaulting employers not complying with the provisions of the law in remitting the monthly pension contributions of their workers.

A breakdown of the sum shows that the recovery comprises principal contributions of N12,440,682,240.91 and penalties N12,092,657,064.18  from defaulting employers.

In the first quarter of 2023 (Q1 2023), the sum of N384,280,651.48 comprising principal contributions of N193,058,483.56 and penalties N191,222,167.92 was recovered from 34 defaulting employers.

In his presentation tittled “Enhancing customer Service in the Pension Industry: PenCom’s New Strategic Plan”, Head of Consumer Protection Department of PenCom Mr. Ikenna Chidi-Ebere explained that the PenCom introduced the ‘Whistleblowing Mechanism’ to encourage the “general public, especially private sector employees to report defaulting employers not complying with the provisions of Pension Reform Act 2014 (Non-remittance of Mandatory Monthly Pension Contributions)”.

He added that “the report can be submitted anonymously to protect employees from the risk of job loss or victimization by their employers.”

According to Mr. Chidi-Ebere,

“Employees can also report any observed irregularity that relates to pension matters which may hamper the customer satisfaction. The report can be lodged at the online and off-line addresses provided by the Commission.”

The Director General of the National Pension Commission, Aisha Dahir-Umar in her welcome remarks said “PenCom’s proactive regulatory approach has strengthened the oversight and governance of pension funds, promoting transparency, accountability and safeguarding the interests of pension contributors.”

Represented by Abdulqadir M. Dahiru, Head, Corporate Communications Department, the PenCom Director General said the creation of the Consumer Protection Department (CPD) underscores PenCom’s determination to prioritise service delivery and provide Retirement Savings Account holders with the care and attention they rightfully deserve.

She described the theme of the workshop, “Transforming Service Delivery in the Pension Industry: Strategies for Improving Efficiency and Customer Satisfaction,” as both timely and crucial as it reflects PenCom’s commitment to continuous service improvement in the Pension Industry so that contributors and retirees receive the best possible experience.

The Director General of PenCom pointed out that regulatory oversight is pivotal in maintaining transparency, fairness, and efficiency, which are the cornerstones of the pension system.