Written by Sarah NEGEDU

PenCom recovers N1.34bn from defaulting employers

A total of N1.34billion accrued interest and pension contributions has been recovered from defaulting employers in the third quarter of 2017, the National Pension Commission, PenCom, has revealed.

The commission in its 2017 third quarter report said it used 55 consultants as recovery agents to get back the outstanding pension contributions and penalties from the defaulting employers.

The commission stated that the affected employers were issued with appropriate notice to remit the outstanding pension contributions. “During the quarter, the sum of N1.34 billion was recovered, this brings the total recoveries made since inception of the Recovery Agents’ activities in 2012 to N13.58 billion.”

On Pension contributions within the period, it indicates that the total monthly pension contribution by contributors from the public and private sectors into their Retirement Saving Accounts, RSA, was N4.38 trillion.

This, it said showed an increase of N135.22billion representing 3.18percent over the total contributions as at the end of the previous quarter. The aggregate total contribution shows that the public sector contributed 51.34percent, while the private sector contributed the remaining 48.64percent.

The report however pointed out that during the quarter under review, the public sector contributed 40.87percent of the total contributions received while the private sector contributed 59.13percent.

It further revealed that the aggregate total pension contribution of the private sector increased from N2.05 trillion as at second quarter of 2017 to N2.13trillion as at third quarter of 2017, re[presenting a growth of 3.89percent.

Also, the aggregate total pension contribution by the public sector grew by 2.52percent from N2.20trillion to N2.25trillion over the same period.

The statement noted that the commission continued the ongoing refund of contributions made by military and other security service agencies personnel exempted from the contributory pension scheme.

It added that during the quarter under review, the department responsible for military pensions processed 254 applications for the refund.

PenCom said N39.83 million was refunded to the contributors while the sum of N127.13million, representing contributions made by the Federal Government on their behalf was returned to the contributory pension account.

Meanwhile, 27 state governments were said to have enacted laws to implement the Contributory Pension Scheme, CPS, as at the third quarter of 2017, while eight states were currently in the process of implementing the CPS law.

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