The National Pension Commission (PenCom) has recovered a total of N13.69 billion from employers who defaulted in pension remittance in the last six years.
The Pension Reform Act, 2004 (amended 2014), provides punishment for employers who deduct pension from their employees but fail to remit the deductions into the employees’ Retirement Savings Accounts (RSAs).
Rattled by the rise in cases of default in pension remittance, PenCom raised recovery agents in 2012 and sent them after the defaulters.
Data from PenCom show that as at the end of 2017, the agents had recovered almost N14 billion.
A breakdown of the total recovery showed that N6.95 billion was the contribution the employers failed to remit as at when due while N6.75 billion was penalties they were forced to pay for their offence.
Analysis showed that the total recoveries made so far translates to a growth of about N2.28 billion from the total recovery of N11.41 billion recorded at the beginning of 2017.
The pension contributions recovered from defaulting employers from inception to the beginning of 2017 were made up of N6.21bn actual pension contributions and N5.20 billion penalty.