No fewer than 308,298 workers have retired under the Contributory Pension Scheme (CPS) since its inception in 2004 till December, 2019 and were currently being paid monthly pension benefits.
Similarly, the number of contributors grew from 8. 14 million in December 2018 to 8.89 million as at December 2019.
More so, the total pension fund assets grew from 8. 64 trillion as at December 2018, to 10. 22 trillion as at December 2019, with an average monthly contribution of N131.69 billion in 2019.
Speaking during a three-day public hearing/investigation held for stakeholders on the non-remittance of pension contributions by the employers in Abuja, Lagos, last week, the acting director-general of the National Pension Commission (PenCom), Hajiya Aisha Dahir-Umar, said, there were 957 federal government’s Ministries, Departments and Agencies (MDAs) under the CPS, comprising of 845 treasury funded MDAs and 112 self-funded MDAs.
According to her, “The federal government was yet to implement the new rate of pension contributions in respect of employees of treasury funded MDAs from a minimum of 7.5 percent to 10 percent.
Stating that there are 236, 676 private companies under the Scheme, she added that, her commission had developed a framework for recovering unremitted pension contributions with a penalty from defaulting employers.
“The framework entails review of pension records of employers to determine unremitted pension contributions as well as incidences of late remittances.
“The commission had between July 2012 and January 2020 recovered the sum of N17. 054 billion, comprising unremitted principal contributions of N8. 644 billion and penalties of N8. 409 billion from 655 employers,” he pointed out.
The acting director-general said the commission had a framework for the regime of sanctions and penalties for securing compliance with the Pension Reform Act (PRA) 2014.
To her, “The application of the sanctions regime has proved very useful in ensuring private sector compliance. From the inception of the CPS to December 2019, the commission has received 3, 595 complaints on non- remittance on pension contributions and 2, 646 were resolved while the remaining 949 complaints are at various stages of resolution,” she said.
She also said the commission’s principal objectives were to regulate, supervise, and ensure the effective administration of pension matters and retirement benefits in the country.
The commission, she stressed, is also empowered to establish uniform set rules, regulations, standard for the administration and payment of retirement benefits.
Between Depleting Workforce And Declining Productivity