PenCom imposes ₦14bn fine on 911 employers over late pension payments

The National Pension Commission (PenCom) has imposed a fine of ₦14.3 billion on 911 employers for failing to remit pension contributions on time.

The Commission disclosed this in its latest report, adding that it also recovered ₦13.83 billion as outstanding pension contributions from the employers.

It will be recalled that Section 92(2) of the Pension Reform Act, PRA 2014, empowers PenCom to appoint Recovery Agents to review employers’ pension records and ascertain their outstanding pension liabilities.

The report stated: “Since the commencement of the recovery exercise in June 2012, significant milestones in recoveries of unremitted pension contributions have been made. As of December 2024, a total of ₦28.187 billion has been successfully recovered from 911 employers. This amount comprises ₦13.829 billion as outstanding pension contributions and ₦14.348 billion in penalties for late remittances.

“In 2023, from the commencement of the recovery exercise in June 2012 to 31 December 2023, a total sum of ₦25.447 billion comprising principal contributions (₦12.929 billion) and penalties (₦12.517 billion) was recovered from defaulting employers.”

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According to PenCom, 41 Recovery Agents were engaged and assigned to various employers for the exercise

PenCom stated: “In addition, the Recovery Agents are required to present introductory letters issued by PenCom and addressed to the specific employer before commencing the exercise.

The key responsibilities of the Recovery Agents include reviewing the records of the employers and determining outstanding pension liabilities from January 2005; Computing the penalty on outstanding pension contributions; serving demand letters on defaulting employers requesting for remittance of outstanding pension contributions with penalty after obtaining a ‘no objection’ from PenCom and obtaining evidence of remittance of outstanding pension contributions/penalty into the employees’ Retirement Savings Accounts.

“The National Pension Commission (PenCom) continues to enforce the provisions of the Pension Reform Act (PRA) 2014 to safeguard the pension rights of employees.

Under Section 92(2) of the PRA 2014, the Commission is empowered to appoint Recovery Agents to review employers’ pension records and ascertain their outstanding pension liabilities.”

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