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Pension contribution: PENCOM to impose fines on defaulters

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The National Pension Commission (PENCOM) on Thursday said that it would sanction employers of labour that failed to remit their employees’ deductions to the appropriate pension fund administrators (PFAs).

PENCOM’s Director-General, Mrs Chinelo Anohu-Amazu, said this while speaking with journalists at a news conference on the forthcoming 3rd edition of the World Pension Summit.

The summit would hold between Sept. 27 and 28 in Abuja.

She said, “It is a financial crime to deduct workers money and not remit such to the relevant Pension Fund Administrators (PFAs).

“We are in control and taking the data of employers who deduct from their employers but do not remit; as well as employers and employees who refuse to contribute to the retirement savings accounts (RSAs) with the PFAs.

“When we impose fines on those who are culpable, they will pay the debts, the accrued interests and all the liabilities.

“We will ensure the law enforcement agents go after such defaulters,’’ Anohu-Amazu said.

The director-general said that only 10 out of the 24 states that had keyed-in into the pension contributory system had started full implementation.

She said that many of the states who were willing to join the benefit system were being hindered by various challenges.

She said that the forthcoming summit with the theme, ‘Pension Innovation: The African Perspective’, would focus on best practices and development on rule of conduct, among others.

The D-G said that the event would also host an award ceremony to recognise excellence, commitment to development and strengthening of the African pension industry.

On the micro-scheme pension, she said that the commission was discussing with the Bank of Industry (BoI), transport workers and other private sectors.

PENCOM is collating data of those that would be involved, she said.

“The commission will proceed with the micro scheme pension based on the data it collects from those that will have shown interests,’’ she said.

Anohu-Amazu said that presently, Africa was facing huge infrastructure deficits.

Pension funds being long-term-patient capital, are suited to address some of the infrastructure challenges, she said.