Regulatory Updates from PenCom - PensionNigeria

Regulatory Updates from PenCom

The National Pension Commission (PenCom) recently released it 3rd quarter report for 2019 and below are updates from the report on, Recovery of Outstanding Pension Contributions, Issuance of Compliance Certificates, Transfer of NSITF Contributions to RSAs and Refund of Pension Contribution to Military.

Recovery of Outstanding Pension Contributions

Employees working in organisations, who do not remit pension contributions or have Group Life Insurance, are to report their employers to PenCom as defaulting employers, check here for how to report

PenCom employees the services of Recovery Agents (RAs) for the recovery of outstanding pension contributions and penalty from defaulting employers. The RAs are mandated to review the pension records of employers assigned to them by PenCom and recover outstanding pension contributions with penalty.

During the 3rd quarter of 2019, demand notices were issued to 18 defaulting employers whose pension liabilities had been established by the RAs. This resulted in the remittance of outstanding pension contributions of N364.68 million, representing principal contributions of N146.95 million and penalty of N217.73 million.

The total recoveries made from inception to date amounted to N16.37 billion, comprising principal contributions of N8.37 billion and penalty of N8 billion. These amounts have since been credited to the respective RSAs of the employees.

Issuance of Compliance Certificates

A compliance certificate is a certificate issued by PenCom to certify that a company has complied with the provisions of Pension Reform Act 2019, employers need this certificate for various reasons including to get contracts from the government.

PenCom received a total of 5,600 applications for the issuance of Compliance Certificates, as at end of 3rd quarter 2019, 5,453 certificates were issued while 147 applications were declined due to non-remittance of pension contributions for the appropriate period and/or non-provision of Group Life Insurance Policy for the employees. The sum of N14.56 billion was remitted to 70,982 employees’ RSAs by the 5,453 organizations.

Transfer of NSITF Contributions to RSAs

PenCom received 24 batches of NSITF transfer applications totaling N19.80 million on behalf of 297 NSITF members. The applications were processed and members’ contributions transferred to their RSAs. Since inception, the sum of N9.98 billion has been transferred to the RSAs of 138,893 NSITF contributors. PenCom processed monthly pension payments of N69.68 million in respect of 3,628 NSITF pensioners. Since inception, the total pension payments to NSITF pensioners amounts to N4.61 billion.

Refund of Pension Contribution to Military

Military Pensioners were exempted from the Contributory Pension Scheme in 2011 and PenCom has since then been refunding Military officers pension contributions. In continuation of the refund of pension contributions to Military and Security Agencies personnel, PenCom during the quarter under review, processed 721 applications for refund. The sum of ₦44.22 million was refunded to the contributors while ₦1.16 billion, representing the contributions by the Federal Government, was returned to the Contributory Pension Account domiciled with Central Bank of Nigeria.

Also Read 2019 Examination of Pension Operators by PenCom

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