PenCom: Over N384m pension recovered from defaulting employers in Q1 2023

The National Pension Commission (PenCom) says it recovered N384.28 million as pension contributions owed workers by defaulting employers in the first quarter (Q1) of 2023.

Aisha Dahir-Umar, director-general, PenCom, disclosed this at the 2023 Labour Writers Association of Nigeria (LAWAN) workshop, in Lagos on Thursday.

Speaking on the theme, ‘Securing the Future: the Benefits of the Contributory Pension Scheme to Nigerian Workers’, Dahir-Umar said the amount recovered by the commission is from January 2023 to March 31, 2023.

Dahir-Umar who was represented by Abdulqadir Dahiru, head of corporate communications, PenCom, said the “N384.28 million was recovered from 34 defaulting employers”.

He noted that the fund is comprised of “N193.06 million contributions and N191.22 million penalties”.

The PenCom boss also said the commission had recovered about N24.53 billion from January 2012 to March 31, 2023 — comprising of N12.44 billion as the actual pension contribution while N12.09 billion is penalty.

“PenCom is committed to protecting workers’ interests and ensuring that employers pay pension contributions as and when due,” Dahir-Umar said.

“PenCom is determined to ensure that Nigerian workers receive their retirement benefits in time.

“The commission’s meticulous regulation and supervision of the pension industry had ensured that pension assets and the contributory pension scheme (CPS) membership continued to grow.”

Speaking further on pension recoveries, she said the value of pension assets stood at N15.58 trillion as at March 31, while CPS membership was 9.95 million.

The PenCom director-general said in 2022, the commission launched a policy allowing retirement savings account (RSA) holders to utilise a portion of their retirement savings as equity for mortgages.

She said 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.

“We recognise that many individuals face challenges in securing adequate housing upon retirement, and we aim to address this issue by unlocking the value of their pension savings to facilitate homeownership,” she added.

“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 percent 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 wellbeing.”

Dahir-Umar also said RSA holders could access 25 percent of their RSA balance to cushion the effect of job loss if they could not secure another employment after four months of job loss.

She said the partial withdrawal from RSA was to offer immediate support during a difficult period.

Dahir-Umar added that the remaining balance in the RSA will continue to grow and accumulate until the RSA holder attains retirement age.