PenCom: Over N4 Billion Remitted to RSAs in Q4 2021

The National Pension Commission has disclosed that 1,526 organisations had remitted a total of N4,047,499,080.64 into the Retirement Savings Accounts (RSAs) of their employees in the fourth quarter (Q4) of 2021, data obtained from PenCom’s latest quarterly report showed.

According to the data, the total number of employee savings accounts that were credited stands at 15,603

The report also reveals that at the end of Q4 2021, twenty-five (25) States of the Federation had passed pension laws based on the Contributory Pension Scheme (CPS), with seven (7) states in the process of doing so.

Also, Four (4) of the five (5) states operating other pension plans have adopted the Contributory Defined Benefits Scheme (CDBS), while one (Yobe State) has implemented the Defined Benefits Scheme (DBS).

A Glance at the report

According to the report, 84.7% of applications were issued Pension Clearance Certificates (PCCs). The report read in part: “The Commission received 1,800 applications from private sector organizations for the issuance of Pension Clearance Certificates (PCCs). Out of this number, PCCs were issued to 1,526 organizations, while 274 applications were in the approval process as at end of Q4,2021. The records showed that the 1,526 organizations had remitted a total sum of N4,047,499,080.64 into the Retirement Savings Accounts of their employees totalling 15,603.”

PenCom also revealed that it carried out various workshops on the developments in the CPS for a number of organisations across the six geopolitical zones of Nigeria: “The commission participated at the 2021 Lagos International Trade Fair organised by the Lagos Chamber of Commerce and Industry in collaboration with the Lagos State Government. The fair provided the opportunity to sensitise members of the public on the workings of the Micro Pension Plan as well as respond to other inquiries on the CPS.”

Some Major Highlights

• The sum of N984,295,614.20 was recovered from 36 defaulting employers during Q4 2021. This is following the issuance of demand notices to defaulting employers whose pension liabilities were established by the Recovery Agents (RAs).Of the total amount,  N406,421,486.65 represented the principal contribution and N577,874,127.55 represented the penalty. Also, legal action against 18 defaulting employers was advised.
• The commission also approved the reimbursement of N1,178,670.15 to 8 military and other security personnel who were exempted from the Contributory Pension Scheme during the quarter under review.
• The report also claims that the commission received applications for the transfer of NSITF contributions on behalf of 208 NSITF participants during the quarter under review. And approval for the transfer of N10,767,194.61 to 180 members’ Retirement Savings Accounts was granted.
• The commission, in the report, denied the request for the transfer of N2,389,145.53 to 28 NSITF donors due to discrepancies between the amount given by PFA and the balances in the NSITF database. In the same light, the commission approved N54,594,952.61 in monthly benefits for 2,305 NSITF retirees.