The National Pension Commission (PenCom) has observed with
dismay the non- compliance by government with the Pension Reform Act
(PRA) 2014 which made an upward review of the rate of contribution and
the proportion of the rate payable by the employer and the employee.
In a submission to a forum organised by the joint house committees of the National Assembly on Pensions, Finance, Capital Market and Institutions, the director-general of the agency, Chinelo Anohu-Amazu, recalled that after the review, the minimum rate was now 18 per cent of the monthly emolument, which is 10 per cent by the employer and 8 per cent by the employee.
But she observed that this revised statutory minimum has been obeyed more in breach by the public sector employers who were yet to revert to the current applicable ratio, adding that this has posed another challenge on enforcement as the affected public service employer was the various tiers of government which is a critical stakeholder in the implementation process of the established Contributory Pension Scheme (CPS).
Anohu- Amazu also informed the committees that the commission has uncovered trend where companies deducted pension contributions from the emoluments of their employees but not remitting same.
“The employees often initiate investigations into the pension liabilities of companies by way of complaints. However, instances abound were complaints of this nature gravely expose the employee to loss of job and an ultimate price for whistle blowing on ground of the perpetuated illegalities of their employers.
“The commission views this as a financial crime and has accordingly approached the Economic and Financial Crimes Commission (EFCC) to collaborate with it to address this situation,” she said.
Speaking on Recovery Agents engaged by the Commission to examine the pension records of employers, determine the pension liability and compute penalty accrued as a result of the non-compliance, the DG said the Agents have issued demand notices, subject to the approval of the Commission upon verification and/or validation of the records of the employers.
Culled from Leadership
In a submission to a forum organised by the joint house committees of the National Assembly on Pensions, Finance, Capital Market and Institutions, the director-general of the agency, Chinelo Anohu-Amazu, recalled that after the review, the minimum rate was now 18 per cent of the monthly emolument, which is 10 per cent by the employer and 8 per cent by the employee.
But she observed that this revised statutory minimum has been obeyed more in breach by the public sector employers who were yet to revert to the current applicable ratio, adding that this has posed another challenge on enforcement as the affected public service employer was the various tiers of government which is a critical stakeholder in the implementation process of the established Contributory Pension Scheme (CPS).
Anohu- Amazu also informed the committees that the commission has uncovered trend where companies deducted pension contributions from the emoluments of their employees but not remitting same.
“The employees often initiate investigations into the pension liabilities of companies by way of complaints. However, instances abound were complaints of this nature gravely expose the employee to loss of job and an ultimate price for whistle blowing on ground of the perpetuated illegalities of their employers.
“The commission views this as a financial crime and has accordingly approached the Economic and Financial Crimes Commission (EFCC) to collaborate with it to address this situation,” she said.
Speaking on Recovery Agents engaged by the Commission to examine the pension records of employers, determine the pension liability and compute penalty accrued as a result of the non-compliance, the DG said the Agents have issued demand notices, subject to the approval of the Commission upon verification and/or validation of the records of the employers.
Culled from Leadership
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