….Threatens actions against defaulters
National Pension Commission (PenCom) has given employers with incomplete remittance documentations till December 31,2023,to provide their Pension Fund Administrators (PFAs) requisite information to facilitate the crediting of pension contributions into the employees’ RSAs or face regulatory actions.
PenCom gave the warning in a document titled: “Outstanding Pension Contributions in the Account of Pension Fund Administrators (PFAs)”, issued today, August 30,2023 and signed by the management.
The pension industry regulator said that it has observed that some employers are remitting the pension contributions of their employees with incomplete documentations adding that consequently,PFAs have been unable to credit the RSAs of the affected employees
.PenCom said the list of the affected employers and employees can be viewed on its website and the PFAs,stressing that all employers and employees on the aforementioned list are required to provide the PFAs with the requisite information, to facilitate the crediting of pension contributions into the employees’RSAs.
” Please note that the Commission shall take appropriate regulatory actions against employers who fail to comply with this directive by December 31,2023″, it posited.
PenCom noted that the Pension Reform Act (PRA) 2014, mandates employers with three or more employees to remit pension contributions into the Retirement Savings Accounts (RSAs) of their employees with Pension Fund Administrators (PFAs), adding that the Act further mandates employers to remit the pension contributions of their employees who are yet to open RSAs into nominal RSAs with any PFA chosen at the employers’s discretion.
