PenCom Recovers N422m From Defaulting Employers

The National Pension Commission (PenCom) said it recovered N422.34 million from employers who failed to remit pension contributions by their employees to respective pension fund administrators (PFAs) in the first quarter of 2022 (Q1’22).

PenCom, however, stated in its 2022 First Quarter report that the figure is 30.6 percent lower than the Commission’s recovery amounting N608.55 million in the corresponding period of 2021 (Q1’21).

According to the Commission, the amount comprises N124.89 million principal contribution and N295.45 million penalty, adding that the sum was recovered from 23 defaulting employers during the quarter under review.

PenCom added that six defaulting employers have been presented for appropriate legal action.

The commission stated: “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 N422.34 million representing principal contribution (N124.89 million) and penalty (N295.45 million) was recovered from 23 defaulting employers during the quarter under review.

“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 N191.44 billion, out of which the private sector contributed N101.11 billion or 52.82 percent, while the public sector accounted for N90.33 billion or 47.18 percent.

“The cumulative pension contributions from inception to the end of the first quarter of 2022 amounted to N7.77 trillion, which is an increase from N7.58 trillion as at the end of Q4 2021,” it added.

PenCom noted that the aggregate pension contributions of the public sector increased from N3.92 trillion in the last quarter of 2021 to N4.02 trillion at the end of Q1 2022.
Similarly, the aggregate pension contributions of the private sector increased from N3.66 trillion in Q4 2021 to N3.76 trillion at the end of Q1 2022.

The commission noted that the total value of pension fund assets as at March 31, 2022 was N13.88 trillion.

“The amount comprised of N9.81 trillion in RSA’ Active’ Funds (RSA Funds I, II, III and V); N1.10 trillion in RSA Retiree Fund (Fund IV); N1.54 trillion in CPFAs; N1.42 trillion in Approved Existing Schemes. Fund VI Active and Retiree Fund amounted to N23.16 billion,” it said.