National Pension Commission (PenCom) has recovered about N24.53 billion contributions owed to workers by defaulting employers in the last 11 years.
The recoveries were from June 2012 to March 31, 2023.
News Rider reports that out of the N24.53 billion, the sum of N12.44 billion was the actual pension contribution while N12.09 billion was the penalty paid by defaulting employers.
It was also learnt that during the first quarter of 2023, N384.28 million (comprising N193.06 million contributions and N191.22 million penalties) was recovered from 34 defaulting employers.
Director-General of PenCom, Mrs Aisha Dahir-Umar, stated this on Thursday in Lagos at the 2023 Labour Writers Association of Nigeria (LAWAN) workshop with the theme, “Securing the Future: The Benefits of the Contributory Pension Scheme to Nigerian Workers”.
Represented by the Head of Corporate Communications of PenCom, Mr Abdulqadir Dahiru, the DG reiterated its commitment to protecting workers’ interests by compelling employers to remit pension contributions as and when due.
She stated that PenCom is determined to ensure that Nigerian workers received their benefits after retirement.
Dahir-Umar noted that the commission’s strict regulation and supervision of the pension industry helped to strengthen pension assets and Contributory Pension Scheme (CPS) membership.
The value of pension assets stood at N15.58 trillion as at March 31, 2023, while CPS membership was 9.95 million.
She revealed that in 2022, PenCom launched a policy allowing Retirement Savings Account (RSA) holders to utilise a portion of their retirement savings as equity for mortgages.
Dahir-Umar hinted that the policy marked a significant milestone in the commission’s ongoing efforts to provide greater flexibility and access to pension funds for the benefit of RSA holders.
The DG recognised that contributors were challenged in securing adequate housing after retirement, adding that PenCom planned to address the issue by unlocking the value of their pension savings to facilitate home ownership.
“Under this new policy, RSA holders who have contributed to their accounts for at least five years and met specific eligibility criteria can utilise up to 25 per cent of their pension savings as equity contribution towards acquiring residential properties.
“This policy aligns with our commitment to ensuring that pension funds catalyse economic development and social well-being,” she added.
She informed that RSA holders could access 25 per cent of their balance to address the crisis associated with job loss if they failed to secure another employment after four months.
Dahir-Umar stated that the partial withdrawal from RSA was to offer immediate support during a difficult period.
She noted that the remaining balance in the RSA would continue to grow and accumulate until the RSA holder attained the compulsory retirement age.
The DG challenged LAWAN members to be committed to excellent journalism, saying that a well-informed media plays a vital role in driving information flow and positive change in the society.
She said that enhancing journalists’ understanding of pensions would empower them to educate members of the public, dispel misconceptions and boost financial planning and security among Nigerian workers.
Dahir-Umar hinted that writers and journalists could shape public opinion and influence policy discussions.
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