Service Delivery Under the Contributory Pension Scheme (CPS) – PensionNigeria

Service Delivery Under the Contributory Pension Scheme (CPS)

One of the strategic focus areas of the National Pension Commission (PenCom) is to ensure excellence in Service Delivery to stakeholders. Therefore, today’s publication seeks to address some issues bordering on service delivery in order to enlighten stakeholders on how to resolve such issues when they occur.

The Pension Fund Administrators (PFAs) have a primary responsibility of providing efficient customer service to their clients. The Retirement Savings Accounts (RSA) holders are therefore expected to seek a resolution of issues with their PFAs before escalating to PenCom when necessary. Some of these issues include non-remittance of pension contributions, payment of retirement benefits and administration, amongst others.

Below are some service delivery issues that should be noted by RSA holders:

Disclosure Requirements and Issues on RSA Statements

PFAs are mandated by PenCom to issue RSA statements to contributors and retirees at least once every quarter. RSA holders are expected to update their contact details with their PFAs from time to time, to ensure that they receive the RSA Statements regularly.

The RSA statement has some minimum information and disclosure requirements mandated by the Commission which includes the amount contributed from inception to date; monthly employer and employee pension contributions; income earned (returns on investment); and total RSA balance as at the reporting period. PFAs may also send RSA balances via text messages to RSA holders and the RSA holder also has the option of checking the performance of his/her RSA online and by physically visiting the nearest branch of his/her PFA to obtain a hard copy of the RSA statement.

In the event of a noted difference between the contributions credited into the RSA of an employee with the actual deductions made from salary, the employee should approach his PFA and employer for reconciliation. Where it is established that there is an under payment of the monthly contributions, the employer must remit the difference into the RSA of the employee.

Remittance of Monthly Pension Contributions by Employers:

The Contribution rates are a minimum of 10 percent by employer and 8 percent by employee, totaling 18 percent monthly. Employers are mandated to remit the monthly pension contributions of every worker on their payroll. For employees whose salaries are deducted and not classified into basic, transport and housing allowances, the pension contributions should be based on the gross salary payable. Employers should take note of this and be guided accordingly. Employees should monitor and report erring employers to the Commission for action. See how to Report HERE 

Regarding non remittance for employees of treasury-funded Ministries, Departments and Agencies (MDAS), their remittances are done by the Commission or the Integrated Personnel and Payroll Information Systems (IPPIS) Division under the Office of the Accountant General of the Federation.

Such employees should Write a complaint to their PFA, inform the Pension Desk Officer of the relevant MDA and provide the necessary documents. Upon receipt and verification of the documents, remittance of the accumulated contributions would be made into respective RSAs.

Where the employee is working for an FGN MDA that is already on the IPPIS Platform, such complaint should be forwarded to the Office of the Accountant General of the Federation for verification and remittance of all outstanding contributions.

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