PenCom Hits 25 Firms With N666.03m Fine Over Pension Default

March 6, 2023
PenCom Hits 25 Firms With N666.03m Fine Over Pension Default

The National Pension Commission (PenCom) penalised 25 employers for defaulting on pension remittance, the commission disclosed in its fourth quarter report for 2022.

Prime Business Africa gathered that the defaulting firms paid a penalty of N666.03 million and their principal contribution of N187.37 million. 

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This brought the total amount drawn from the 25 defaulting firms to N853.4 million. Aside from the penalty, 34 companies were recommended for legal action, as they failed to meet their obligations to PenCom.

“Following the issuance of demand notices to defaulting employers whose pension liabilities were established by the Recovery Agents, the sum of N853.4m representing principal contribution (N187.37m) and penalty (N666.03m) was recovered from 25 defaulting employers during the quarter under review. 

“Meanwhile, 34 defaulting employers have been recommended for appropriate legal action, after all administrative steps taken to make them comply failed.” 

Also, between June 2012 to December 31, 2022, the National Pension Commission disclosed that N24.15 billion was recovered from defaulting employers for non-remitted pension savings of employees. 

“From the commencement of the recovery exercise in June 2012 to 31 December 2022, a total of N24.15m comprising of principal contributions (N12.25bn) and penalties (N11.9bn) was recovered from defaulting employers,” the fourth quarter result shows.

Also, it was learnt that the pension fund assets under management increased from N14.42 trillion as of 30 September 2022, to N14.99 trillion as of 31 December 2022, indicating N568.33 billion. 

PenCom Director-General, Aisha Dahir-Umar, said this occurred despite the challenging macroeconomic environment and the headwinds in the global economic climate.

“This laudable performance, in the growth of the AuM, points to the fact that the pension industry will continue to deliver value and benefit to its stakeholders and the nation’s economy. 

“During the reporting period, the commission stepped up its efforts to ensure sustainable investment by pension funds in alternative asset classes and structured infrastructure projects that meet the strict requirements of the pension fund investments regulation. 

“We continued our efforts to ensure further diversification of investments in pension fund portfolio assets,” Dahir-Umar said.

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