The National Pension Commission (PenCom) has said its efforts in addressing uncredited contributions have yielded significant results, with its director-general Aisha Dahir-Umar revealing that since 2012, approximately N12.9 billion in principal contributions under Contributory Pension Scheme (CPS) and N12.5 billion in penalties have been recovered.
She said the funds have been diligently credited to individual Retirement Savings Accounts (RSAs), ensuring that workers receive the retirement benefits they are entitled to.
Despite the challenges posed by non-remittances and uncredited contributions, PenCom says it remains committed to enforcing compliance and safeguarding the interests of RSA holders.
The CPS seems to have marked a significant milestone with pension assets surpassing N18 trillion, according to the head of the corporate communications department at PenCom, Ibrahim Garba Buwai who represented the DG also said the scheme has not only enhanced retirement benefits for workers but also addressed the inefficiencies of the old pension system.
Speaking at the 2024 annual general conference of the Abuja chapter of Finance Correspondence Association of Nigeria, Buwai highlighted the robustness of the CPS, emphasising that the pension assets are not just figures but represent the hard-earned savings of contributors and retirees. With over 10.1 million contributors, the N18.1 trillion in pension assets belongs to them, underscoring the scheme’s transparency and accountability.
He commended the positive reportage of PenCom’s activities by the media and reiterated the commission’s commitment to transparency and effective management of pension funds. He emphasised the importance of collaboration with the media to bridge the information gap and dispel misconceptions about the CPS.
Addressing concerns about investing pension funds in infrastructure, the DG clarified that strict guidelines are in place to safeguard pension assets. Direct investment in infrastructure is prohibited, and investment decisions are made by pension fund managers based on stringent regulations set by PenCom.
On the issue of remitting deductions from employees, she acknowledged the challenges posed by millions of employers. However, he emphasised the role of RSA holders in monitoring remittances and encouraged them to report any discrepancies to PenCom. He also highlighted the penalties for late remittances, emphasising the commission’s commitment to enforcing compliance.
Regarding uncredited contributions, the DG expressed concern and urged employers to rectify discrepancies to ensure that employees’ contributions are properly credited to their accounts. He revealed that since 2012, PenCom has recovered approximately N12.9 billion in principal contributions and N12.5 billion in penalties, all of which have been credited to individual RSA accounts.
In conclusion, Buwai reiterated PenCom’s commitment to ensuring the safety and efficiency of pension funds, as well as its dedication to promoting financial literacy and retirement planning among Nigerians.