In the first quarter (Q1) of 2023, the National Pension Commission (PenCom) reported that a total of 13,126 disengaged workers withdrew N12.72 billion from their pension funds. This information was disclosed in PenCom’s Q1 report for the year, highlighting the disbursement data and regulatory provisions.
According to the pension regulation act, disengaged workers are allowed to access 25 percent of their retirement savings balance within four months of unemployment. In line with this, PenCom granted approval for the payment of N12,717.90 million (equivalent to 25 percent of their RSA balances) to 13,126 RSA holders below the age of 50 years who were unable to secure another job within the stipulated period.
Sector-wise, the report indicated that the federal government had 259 disengaged workers, state governments had 211, and the private sector accounted for 12,656 disengaged workers in Q1. Additionally, PenCom revealed that from 2014 to March 2023, a total of 466,812 workers who were disengaged from their jobs had withdrawn N201.22 billion from their retirement savings accounts.
During the quarter under review, PenCom continued to enlist the services of recovery agents (RAs) to recover unremitted pension contributions and penalties from defaulting employers. Demand notices were issued to defaulting employers, resulting in the recovery of N384.28 million from 34 defaulting employers, comprising principal contributions (N193.06 million) and penalties (N191.22 million). Furthermore, four defaulting employers were forwarded to the commission’s secretariat/legal advisory services department for prosecution. Since the commencement of the recovery exercise in June 2012 until March 31, 2023, PenCom has successfully recovered a total of N24.53 billion, comprising principal contributions (N12.44 billion) and penalties (N12.09 billion), from defaulting employers.
In terms of pension contributions, PenCom reported that the total contributions remitted to individual Retirement Savings Accounts (RSAs) amounted to N225.49 billion in the first quarter of the year. Of this sum, the public sector accounted for N124.7 billion, while the private sector contributed N100.79 billion. This brings the cumulative pension contributions from inception to the end of Q1 2023 to N8.7 trillion, according to PenCom’s records.
The report reflects PenCom’s commitment to overseeing the disbursement of pension funds, ensuring compliance from employers, and safeguarding the retirement savings of workers in Nigeria.
