The National Insurance Commission (PenCom) has said the total recoveries of outstanding pension contributions and penalty from defaulting employers from inception to June 2019 amounted to N16.01 billion, comprising principal contributions of N8.22 billion and penalty N7.79 billion.
PenCom stated this in its second quarter 2019 report, adding that these amounts have since been credited to the respective Retirement Savings Accounts (RSAs) of the employees.
The Commission posited that it had maintained the services of Recovery Agents (RAs) for the recovery of outstanding pension contributions and penalty from defaulting employers, stressing that RAs were mandated to review the pension records of the employers assigned by the Commission with a view to recover outstanding pension contributions with penalty.
“During the quarter, demand notices were issued to 37 defaulting employers whose pension liabilities had been established by the RAs, which resulted in the remittance of outstanding pension contributions of N260.62 million, representing principal contributions of N151.59 million and penalty of N109.64 million.
Accordingly, total recoveries made from inception to date amounted to N16.01 billion, comprising principal contributions of N8.22 billion and penalty N7.79 billion. These amounts have since been credited to the respective RSAs of the employees,” PenCom stated.
PenCom maintained that the pension industry recorded a 1.78 per cent growth in the scheme membership during the second quarter of 2019, moving from 8.63 million contributors at the end of the preceding quarter to 8.79 million.
It added that the growth in the industry membership was driven by the RSA scheme, which had an increase of 153,572 contributors representing 1.79 per cent. “However, membership of the Closed Pension Fund Administration (CPFA) Scheme declined by 58 members (23,258) while the Approved Existing Scheme (AES) membership remained unchanged at 40, 951,” it said.The RSA registrations, it said, grew to 8,722,609 as at second quarter, 2019 moving from 8,569,037 as at first quarter, 2019, representing a growth of 1.79 per cent (153,572), stressing that the growth can be attributed to the increased level of compliance by the private sector as a result of the various steps taken to improve compliance and coverage, as well as marketing strategies of the PFAs.