The National Pension Commission (PenCom) has issued a stern warning to employers failing to provide complete documentation for their employees’ pension contributions. In a press release, PenCom revealed that some employers were not adhering to established procedures, causing Pension Fund Administrators (PFAs) to be unable to credit Retirement Savings Accounts (RSAs) of affected workers.
A December 31, 2023, deadline has been set for these employers to rectify the situation, with PenCom threatening regulatory action against non-compliant businesses, in line with the Pension Reform Act 2014 (PRA 2014). The PRA 2014 mandates employers with three or more employees to remit pension contributions into their employees’ RSAs with PFAs. It also requires contributions for employees without RSAs to be placed into nominal RSAs chosen by the employer.
A list of affected employers and employees is accessible on PenCom and PFA websites, and individuals on this list must provide the necessary information to PFAs for proper crediting of pension contributions. PenCom emphasizes its commitment to effective industry regulation and ensuring timely retirement benefit payments.
Read the full release below:
The Pension Reform Act 2014 (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). The PRA 2014 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 employers’ discretion.
The National Pension Commission (PenCom) has observed that some employers are remitting the pension contributions of their employees with incomplete documentation. Consequently, PFAs have been unable to credit the RSAs of the affected employees.
The list of the affected employers and employees can be viewed on the websites of PenCom and PFAS. 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 31 December 2023, in line with the provisions of the PRA 2014
RSA holders and the general public are assured of PenCom’s commitment to effectively regulating and supervising the person industry, to ensure that retirement benefits are paid as and when due.
