PenCom: Disengaged workers withdrew N12.72bn from pension fund in Q1

The National Pension Commission (PenCom) says 13,126 disengaged workers withdrew N12.72 billion in the first quarter (Q1) of 2023.

The disbursement data is contained in the agency’s Q1 report for the year.

PenCom said the withdrawals aligned with the pension regulation act which allows any disengaged worker to access 25 percent of their retirement savings balance within four months of unemployment.

“The department granted approval for the payment of N12,717.90 million (being 25 percent of their RSA balances) to 13,126 RSA holders under the age of 50 years, who were disengaged from employment and unable to secure another job within four months,” the report said.

On the sectoral withdrawal approvals, PenCom said the federal and state governments had 259 and 211 ex-workers respectively, while the private sector had a total of 12,656 in Q1.

The report also shows that from 2014 to March 2023, the agency has had a total of 466,812 workers who were disengaged from their jobs and have withdrawn N201.22bn from their retirement savings accounts.

‘N384.28 MILLION RECOVERED FROM 34 DEFAULTING EMPLOYERS’

In the quarter under review, PenCom said the services of recovery agents (RAs) were sustained for the recovery of unremitted pension contributions and penalties from defaulting employers.

“Demand notices were issued to defaulting employers whose pension liabilities were established by the recovery agents. During the quarter, the sum of N384.28 million comprising principal contributions (N193.06 million) and penalties (N191.22 million) was recovered from 34 defaulting employers,” the agency said.

“Meanwhile, four defaulting employers were forwarded to the commission secretariat/legal advisory services department for prosecution. From the commencement of the recovery exercise in June 2012 to 31 March 2023, a total sum of N24.53 billion comprising of principal contributions (N12.44 billion) and penalties (N12.09 billion) was recovered from defaulting employers.”

PenCom also said the total pension contributions remitted to individual RSAs was N225.49 billion, in the first three months of the year.

The commission explained that, out of this figure, the public sector accounted for N124.7 billion, while the private sector contributed N100.79 billion.

This puts “the cumulative pension contributions from inception to the end of Q1 2023 at N8.7 trillion,” PenCom said.