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HomeBusinessPension Commission fined businesses N12.1 bln for default in remittance, filing

Pension Commission fined businesses N12.1 bln for default in remittance, filing

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The National Pension Commission (PenCom) has fined defaulting businesses N12.09 billion for their failure to file their employee pension contribution within the stipulated period.

The commission also recovered a total of N12.44 billion in principal contributions from businesses that failed to send their employees’ pension contributions on time.

The fine was paid for infractions committed between June 2012 and March 31, 2023.

PenCom said in its 2023 first quarter pension industry report that its recovery agents jumped into action following reports against the affected companies before it was able to retrieve the N24.5 billion, inclusive of penalty costs.

According to the regulatory agency, the recovered funds have been transferred to Pension Fund Administrators (PFAs) and paid to the affected employee’s Retirement Savings Account (RSA).

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It was stated in the third quarter period that demand notices were issued to delinquent employers whose pension liabilities had been confirmed by the Recovery Agents.

However, during the first quarter of the current fiscal year, a total of N384.2 million was collected from 34 defaulting employers, including main payments of N193.059 million and penalties of N191.222 million.

The names of four defaulting employers were given to the Commission Secretariat/Legal Advisory Services Department for prosecution, it added.

According to Section 11 (6) of the Pension Act 2014, any employer who fails to submit payments within the time allowed would be subject to a penalty determined by the commission, in addition to the remittance already due be liable to a penalty to be stipulated by the commission.

According to pension law, the penalty shall not be less than 2% of the total contribution that remains unpaid for each month, or part of each month, that the default continues, and the amount of the penalty shall be recoverable as a debt owing to the employee’s retirement savings account, as applicable.

(omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138

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