Nigeria: PenCom says over N4 billion remmitted to RSAs by 1,526 organisation in Q4 2021

The National Pension Commission stated that 1,526 organizations had remitted a total sum of N4,047,499,080.64 into the Retirement Savings Accounts of their employees totalling 15,603. This is according to data obtained from PenCom’s latest quarterly report.

At the end of Q4 2021, twenty-five (25) States of the Federation had passed pension laws based on the CPS, with seven (7) states in the process of doing so.

Four (4) of the five (5) states that operate other pension plans have adopted the Contributory Defined Benefits Scheme (CDBS), while one (Yobe State) has implemented the Defined Benefits Scheme (DBS).

What PenCom is saying

PenCom stated that 84.7% of applications were issued Pension Clearance Certificates (PCCs). The report said “The Commission received 1,800 applications from private sector organizations for the issuance of Pension Clearance Certificates (PCCs). Out of this number, PCCs were issued to 1,526 organizations, while 274 applications were in the approval process as at end of Q4,2021. The records showed that the 1,526 organizations had remitted a total sum of N4,047,499,080.64 into the Retirement Savings Accounts of their employees totalling 15,603.”

PenCom said it conducted various workshops on the developments in the Contributory Pension Scheme for a number of public and private sector organisations across the six geopolitical zones of Nigeria. It said, “The commission participated at the 2021 Lagos International Trade Fair organised by the Lagos Chamber of Commerce and Industry in collaboration with the Lagos State Government. The fair provided the opportunity to sensitise members of the public on the workings of the Micro Pension Plan as well as respond to other inquiries on the CPS.”

Key highlights of the report

• Following the issuance of demand notices to defaulting employers whose pension liabilities were established by the Recovery Agents (RAs), the sum of N984,295,614.20 was recovered from 36 defaulting employers during the quarter Q4 2021, representing principal contribution (N406,421,486.65) and penalty (N577,874,127.55). Meanwhile, legal action against 18 defaulting employers has been advised.
• The Commission approved a reimbursement of N1,178,670.15 to 8 military and other security personnel who were exempted from the Contributory Pension Scheme during the quarter under review (CPS).
• The Commission received applications for the transfer of NSITF contributions on behalf of 208 NSITF participants during the quarter under review. The transfer of N10,767,194.61 to 180 members’ Retirement Savings Accounts (RSAs) was approved.
• Due to discrepancies between the amount given by PFA and the balances in the NSITF database, the Commission denied the request for the transfer of N2,389,145.53 to 28 NSITF donors.
• In the same vein, the Commission authorized N54,594,952.61 in monthly benefits for 2,305 NSITF retirees.