By Bisi Bamishe
The National Pension Commission (PenCom) has observed that some employers are remitting the pension contributions of their employees with incomplete documentation.
Frowning at this action, the supervisory body of pension industry said this has resulted to PFAs been unable to credit the RSAS of the affected employees.
The Pension Reform Act 2014 (PRA 2014) mandates employers with three or more employees to remit pension contributions into the Retirement Savings Accounts (RSAS) of their employees with Pension Fund Administrators (PFAs).
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.
According to press statement released by the Commission, appropriate regulatory actions would be taken against employers who fall to comply with this directive by 31 December 2023, in line with the provisions of the PRA 2014.
The statement added that “list of the affected employers and employees could be viewed on the websites of both 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 assured RSA holders and the general public of Commission’s commitment to effectively regulating and supervising the pension industry, to ensure that retirement benefits are paid as and when due.
