PenCom: Over 41,000 employees uncredited due to incomplete documentation by employers

August 30, 2023 8:13 pm

PenCom commences online enrolment exercise for prospective retirees The National Pension Commission (PenCom) says it has commenced the online verification and enrolment exercise for prospective retirees in ministries, departments and agencies (MDAs) of the federal government. The commission said the exercise is for those who are due to retire in 2025. Omolola Oloworaran, acting director-general (DG), PenCom, spoke at a workshop on the online enrolment application for pension desk officers (PDOs) of treasury-funded ministries, departments and agencies (MDA) of the federal government, on Monday in Abuja. Oloworaran said the commission is working effortlessly to ensure that challenges such as application downtimes are resolved. She also said a new and more efficient enrolment application that will provide a user-friendly and seamless experience for users has been developed. “At the National Pension Commission (PenCom), we hold firmly to our statutory responsibility of ensuring a seamless pre-retirement verification and enrolment process for employees of federal government treasury-funded MDAs,” Oloworaran said “Each year, we embark on this exercise to gather accurate data for determining the Accrued Pension Rights of prospective retirees, so that the federal government can make the necessary budgetary provisions. “Today’s session is not just a routine gathering; it is part of PenCom’s commitment to building the capacity of stakeholders, specifically you, the Pension Desk Officers, whose roles are indispensable in this process. “This workshop aims to equip you with the skills and knowledge needed to effectively use the application and address any challenges that arise during the enrolment process. “We are also here to confront the issues of the past head-on.” 'THERE WERE GAPS IN PREVIOUS ENROLMENT' She further said in previous enrolment exercises, gaps and challenges were observed. The PenCom DG added that the workshop will provide practical solutions and clarity on the modalities for the upcoming 2025 enrollment. “We understand that some challenges, like application downtimes, have occasionally hindered the process, particularly during last-minute rushes,” she said. “I am pleased to inform you that we are actively working on developing a new, more efficient enrolment application that will provide a user-friendly and seamless experience for all stakeholders." Oloworaran also reassured that the commission is committed to continuously improving service delivery across the pension industry. The PenCom boss said despite some setbacks, including delays in the release of funds for retirees’ accrued rights, she’s confident that these issues will soon be resolved. “Today is not just about resolving technical issues; it is also about reaffirming our shared responsibility to Nigeria’s retirees, who deserve timely and seamless access to their benefits,” she added. Oloworaran also said significant progress has been made by all critical stakeholders to clear the outstanding pension liabilities and put in place long-term solutions that will prevent future delays in funding.

The National Pension Commission (PenCom) says the retirement savings accounts (RSAs) of over 41,000 employees’ have not been credited due to the failure of employers to provide complete documentation for their pension contributions.

The commission disclosed this in a statement on Wednesday, titled, ‘Outstanding Pension Contributions in the Account of Pension Fund Administrators (PFAs)’.

PenCom said it observed that some employers are remitting the pension contributions of their workers with incomplete documentation.

Consequently, the agency said, “PFAs have been unable to credit the RSAs of the affected employees”.

Available data on the commission’s website show that about 41,628 employees have not been credited.

The agency asked employers to provide PFAs with the necessary information to ensure the crediting of workers’ RSAs, threatening to “take regulatory actions” against firms that fail to comply.

“The PRA 2014 further mandates employers to remit the pension contributions of their employees who are yet to open RSAs into nominal RSAs with any PFA chosen at the employers’ discretion,” the statement reads.

“PenCom has observed that some employers are remitting the pension contributions of their employees with incomplete documentation. Consequently, PFAs have been unable to credit the RSAs of the affected employees.

“The list of the affected employers and employees can be viewed on the websites of PenCom and PFAs.

“All employers and employees on the aforementioned list are required to provide the PFAs with the requisite information to facilitate the crediting of pension contributions into the employees’ RSAs.”

PenCom reassured RSA holders and the public of its commitment to effectively regulating and supervising the pension industry to ensure that retirement benefits are paid as and when due.

As at June 2023, PenCom pegged the number of contributors to over 10 million under the contributory pension scheme (CPS) as against the 9.86 million members at the end of 2022.