December 2, 2022

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Pension compliance strengthened as restoration brokers internet N22.13bn


Efforts to strengthen pension remittance compliance by employers of labour has continued to realize traction, as restoration brokers since inception has pulled in N22.13 billion.

In accordance with knowledge from the Nationwide Pension Fee (PenCom), from the graduation of the restoration train in June 2012 to 30 June 2022, a complete of N22.13 billion, comprising of principal contributions (N11.441 billion and penalties N10.690 billion was recovered from defaulting employers.

Second quarter report of the PenCom reveals that following the issuance of demand notices to defaulting employers whose pension liabilities have been established by the Restoration Brokers (RAs), the sum of N721,120,251.46 representing principal contribution (N517,654,905.94) and penalty (N211,465,345.52) was recovered from 20 defaulting employers through the quarter beneath evaluate.

On the similar time, seven defaulting employers have been beneficial for applicable authorized motion, in spite of everything administrative steps taken to make them comply failed.

Part 11 (6) of the Pension Act 2014, states that any employer who fails to remit the contributions throughout the time prescribed shall, along with making the remittance already due, be liable to a penalty to be stipulated by the fee.

The penalty, in response to the pension legislation shall not be lower than 2 % of the full contribution that is still unpaid for every month, or a part of every month that the default continues, and the quantity of the penalty shall be recoverable as a debt owing to the worker’s retirement financial savings account because the case could also be.

Aisha Dahir-Umar, director-general, PenCom through the 2022 Stanbic IBTC Pension Managers Employers’ Discussion board with the theme “Pension Good: Equipping Staff For a Higher Future” held in Lagos on Tuesday referred to as on employers to make immediate remittance of their employees’ pension decutions.

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Dahir-Umar represented by Babatunde Alayande, head, South West Zonal Workplace of PenCom stated for pensions to be good so as to equip staff for a greater future, employers are anticipated by Pension Reform Act (PRA 2014), to make sure the remittance of pension contributions of staff into their Retirement Financial savings Account (RSAs) inside seven days of wage cost.

“Pension contributions are anticipated to be remitted into the RSAs of staff inside seven days of wage cost,” he acknowledged.

In accordance with her, for pension to be good employers are additionally anticipated to open nominal retirement saving account for workers who has refused to open their very own retirement saving accounts and as soon as the nominal RSA is opened on behalf of such worker, the employer is predicted to begin pension contribution remittance into that nominal RSA till the worker opens his RSA.

In accordance with the Fee, 12,760 functions from non-public sector organizations for the issuance of Pension Clearance Certificates (PCCs) through the second quarter 2022.

“Out of this quantity, PCCs have been issued to 10,085 organizations, whereas 2,675 functions have been being processed.”

The data confirmed that the 4,025 organizations had remitted a complete sum of N43, 778,899,890.04 into the Retirement Financial savings Accounts (RSAs) of their staff, totalling 141,701.

The contributions remitted to particular person RSAs in Q2 2022

stood at N238.75 billion, and out of this whole, the general public sector accounted for N136.79 billion or 57.29 %, whereas the non-public sector contributed N101.96 billion or 42.71 %.

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The cumulative pension contributions from inception to the tip of the second quarter of 2022 amounted to N8.01 trillion, which is a rise from N7.77 trillion as on the finish of Q1 2022.