Employers of labour in the country who failed to remit deducted pension of their workers to the National Pension Commission, PenCom, are being charged to court, the commission has said.
The Director-General, PenCom, Aisha Dahir-Umar, stated this in a report, the Nation newspaper quotes.
The Pencom boss said court cases have been instituted against recalcitrant employers with a view to ensure that the right is done.
According to her, some cases have also been settled out of court after the employers agreed to pay what they owe their workers as contributory pension to the commission.
To this effect, Dahir-Umar said PenCom recovered N1.47 billion from defaulting employers, with N864.69 million recovered as principal contributions and N608.90 million as penalty for the non-timely remittance of the contributions last year.
She said the commission has prosecuted 1, 077 recalcitrant employers within 10 years between 2013 to 2024.
The Pencom boss warned employers to stop flouting the PRA Act 2014, adding that the commission will support employers faithful in remitting their workers pension.
She said “Employers failing to or delaying in remitting their employees’ pension contributions are flouting the PRA 2014. We have put in place a mechanism to recover pension liabilities, including penalties, from defaulting employers and so we encourage employees to report their employers, who are not remitting pension contributions into their Retirement Savings Accounts (RSAs) as required by the PRA 2014. We allow employees to anonymously report their defaulting employers. When such complaints are received, the employers are compelled to remit the principal contributions with penalties.
“Section 11(6) of the PRA 2014 states that an employer who fails to deduct or remit the contributions within the stipulated time frame of seven working days from the day salaries are paid shall, in addition to making the remittances already due, be liable to a penalty.
“This penalty shall not be less than two per cent of the total contributions that remain unpaid for each month or part of each month the default continues. The amount of the penalty shall be recovered as a debt owed and paid into the employee’s RSA. Employers should be mindful that promptly remitting pension contributions is more cost-effective than risking penalties due to non-compliance or delayed remittance, as such penalties can be substantial.
“In addition, the PRA 2014 empowers PenCom to authorise the examination, inspection, or investigation of an employer relating to pension funds or assets. This provision ensures compliance by employers and mitigates complaints from employees and PFAs on non-remittance of pension contributions by some employers.”
