Heavy sanctions await employers with incomplete remittance documentations of their employees if they fail to correct the anomaly through their Pension Fund Administrators (PFAs) on or before December 31, 2023, LEADERSHIP learnt.
The National Pension Commission (PenCom) has, in a document to the concerned employers and employees respectively yesterday, and sighted by LEADERSHIP said, this has prevented PFAs from crediting accounts of the concerned employees.
To this end, it urged employers with incomplete remittance documentations to provide their PFAs with requisite information to facilitate the crediting of pension contributions into the employees Retirement Savings Accounts(RSAs) or face regulatory actions.
Findings by LEADERSHIP revealed that several thousands of employers were affected while over a 100,000 employees were said to have been affected by this development.
In the document entitled: ‘Outstanding pension Contributions in the Account of Pension Fund Administrators (PFAs),’ PenCom said, it has observed that some employers are remitting pension contributions of their employees with incomplete documentation, adding that, consequently, PFAs have been unable to credit the RSAs of the affected employees.
PenCom said, the list of the affected employers and employees can be viewed on its website and the PFAs, stressing that, all employers and employees on the aforementioned list are required to provide the PFAs with the requisite information to facilitate the crediting of pension contributions into the employees RSAs.
“Please note that the Commission shall take appropriate regulatory actions against employers who fail to comply with this directive by December 31, 2023, in line with the provisions of the PRA 2014,” the document reads.
PenCom stated that the Pension Reform Act (PRA) 2014, mandates employers with three or more employees to remit pension contributions into the Retirement Savings Accounts (RSAs) of their employees with Pension Fund Administrators (PFAs), even as the Act further mandates employers to remit the pension contributions of their employees who are yet to open RSAs into nominal RSAs with any PFA chosen at the employer’s discretion.
