The National Pension Commission (PenCom) has announced the recovery of a total of N25.45 billion in unremitted pension funds from defaulting employers between 2012 and 2023. This amount comprises N12.93 billion in principal contributions and N12.52 billion in penalties.
Ibrahim Buwai, the Director of Corporate Communications at PenCom, shared this information during a presentation to finance reporters in Abuja. He highlighted that the Pension Reforms Act stipulates penalties for late remittances, with interest accruing at a rate of two percent per month.
Buwai emphasized the significant efforts made to enforce compliance, with the recovered principal contributions and penalties almost equally distributed. He explained that from the inception of the recovery agents’ programs in 2012 until December 31, 2023, approximately N12.9 billion in principal contributions and N12.5 billion in penalties were recovered.
He reassured that all the recovered funds, including penalties and principal contributions, are deposited into individual Retirement Savings Accounts (RSAs) without deductions for administrative purposes. This ensures that every recovered amount directly benefits RSA holders.
However, Buwai also highlighted challenges faced by PenCom in its recovery efforts, particularly related to employers failing to remit pension contributions on time and the absence of proper schedules accompanying remittances to pension fund custodians (PFCs). This lack of documentation impedes the proper allocation of funds to RSA holders and poses obstacles to effective enforcement.
