The National Pension Commission (PenCom) has sanctioned defaulting companies N12.09billion monetary fines, LEADERSHIP learnt.
This is aside the N12.440 billion principal contributions recouped, making a total payment of N24.5billion by employers who failed to remit the pension contributions of their workers as and when due. The penalty payment was for infraction committed between June 2012 to 31 March 2023.
In a 2023 first quarter report of the pension industry by PenCom, it disclosed that it’s recovery agents swung into action following reports against the concerned companies before it was able to recoup the N24.5billion, inclusive of penalty fees.
The recovered fund, according to the regulatory body, has however, been moved to Pension Fund Administrators (PFAs) and remitted to Retirement Savings Account (RSA) of the concerned contributors. In the third quarter period, it disclosed that, demand notices were issued to defaulting employers whose pension liabilities were established by the Recovery Agents.
However, during the first quarter of the current year, the sum of N384.2million comprising principal contributions of N193.059 million and penalties N191. 222 million was recovered from 34 defaulting employers. Four defaulting employers’ name, it added, were forwarded to the Commission Secretariat/Legal Advisory Services Department for prosecution.
Section 11 (6) of the Pension Act 2014, states that any employer who fails to remit the contributions within the time prescribed shall, in addition to making the remittance already due, be liable to a penalty to be stipulated by the commission.
The penalty, according to the pension law shall not be less than 2 per cent of the total contribution that remains unpaid for each month, or part of each month that the default continues, and the amount of the penalty shall be recoverable as a debt owing to the employee’s retirement savings account as the case may be.