Why we fined firms N12.093bn -PenCom

By allcitynews.ng

When the leadership of National Pension Commission (PenCom) released hammer against defulters, it was a reconfirmation that unless action against an evil work is executed speedily, the heart of people will be prepared to repeat such evil acts.

In apparent bid to act as deterrent, PenCom has fined defaulting companies N12.09 billion.

This is in addition to the N12.440 billion in principal contributions recovered, for a total payment of N24.5 billion by employers who failed to remit their employees’ pension contributions on time.

The fine was paid for an infraction committed between June 2012 and March 31, 2023.

PenCom disclosed in its 2023 first quarter pension industry report that its recovery agents swung into action following reports against the concerned companies before it was able to recoup the N24.5 billion, inclusive of penalty fees.

According to the regulatory body, the recovered funds have been transferred to Pension Fund Administrators (PFAs) and remitted to the concerned contributors’ Retirement Savings Accounts (RSA).

It was disclosed in the third quarter period that demands notices were issued to defaulting employers whose pension liabilities had been established by the Recovery Agents.

However, during the first quarter of the current fiscal year, a total of N384.2 million was recovered from 34 defaulting employers, which included principal contributions of N193.059 million and penalties of N191.222 million.

According to PenCom, the names of four defaulting employers were forwarded to the Commission Secretariat/Legal Advisory Services Department for prosecution.

It would be recalled that Section 11 (6) of the Pension Act 2014, spelt out that any employer who fails to remit contributions within the time prescribed will be subject to a penalty determined by the commission in addition to the remittance already due.

According to pension law, the penalty shall not be less than 2% of the total contribution that remains unpaid for each month, or part of each month, that the default continues, and the amount of the penalty shall be recoverable as a debt owing to the employee’s retirement savings account, as applicable.

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