The National Pension Commission (PenCom) revealed that ₦422.34 million was recovered from defaulting employers who failed to remit pension contributions by their employees to respective Pension Fund Administrators (PFAs).
PenCom made this known via its 2022 first-quarter report which was released on Tuesday.
The report revealed that the amount recovered is 30.6% lower than than the money recover in the first quarter of 2021, which was ₦608.55 million.
PenCom said the amount recovered comprises of ₦124.89 million principal contribution and ₦295.45 million penalty.
It added that the sum was recovered from 23 defaulting employers during the quarter under review.
Meanwhile, it said six defaulting employers have been presented for appropriate legal action.
“Following the issuance of demand notices to defaulting employers whose pension liabilities were established by the recovery agents (RAs) appointed by the commission, the sum of ₦422.34 million representing principal contribution (₦124.89 million) and penalty (₦295.45 million) was recovered from 23 defaulting employers during the quarter under review,” the statement reads.
“Meanwhile, six defaulting employers have been recommended for appropriate legal action for refusing to remit pension contributions of their employees after all administrative actions to make them comply failed.”
The commission said the total pension contributions remitted to individual retirement savings accounts (RSAs) in the first quarter of 2022 stood at ₦191.44 billion, out of which the private sector contributed ₦101.11 billion or 52.82 percent, while the public sector accounted for ₦90.33 billion or 47.18 percent.
“The cumulative pension contributions from inception to the end of the first quarter of 2022 amounted to ₦7.77 trillion, which is an increase from ₦7.58 trillion as at the end of Q4 2021,” it added.
PenCom noted that the aggregate pension contributions of the public sector increased from ₦3.92 trillion in the last quarter of 2021 to ₦4.02 trillion at the end of Q1 2022.
“Out of this number, PCCs were issued to 10,541 organizations, while 659 applications were in the approval process as at March 31, 2022,” PenCom added.
“The records showed that the 10,541 organizations had remitted a total of ₦59.39 billion into the retirement savings accounts (RSAs) of their employees, totaling 45,170.”
The total value of pension fund assets as at March 31, 2022 was ₦13.88 trillion.
“The amount comprised of N9.81 trillion in RSA’ Active’ Funds (RSA Funds I, II, III and V); ₦1.10 trillion in RSA Retiree Fund (Fund IV); ₦1.54 trillion in CPFAs; ₦1.42 trillion in Approved Existing Schemes. Fund VI Active and Retiree Fund amounted to ₦23.16 billion,” it said.
The commission noted that employers are mandated to remit workers’ monthly pension contributions to their retirement savings account (RSA) for the exclusive purpose of providing retirement income.
