Following the uninterrupted default in the monthly pension remittance of workers by their employers in the country, the National Pension Commission (PenCom) is set to clamp down on defaulting employers in 2025, as 35 defaulted employers paid a total sum of N210.68 million as a penalty in the second quarter of this year across the country.
This, the commission revealed in its second quarter report obtained on their website.
The report also explained how the commission maintained the services of twenty-five Recovery Agents (RAs) for the recovery of unremitted pension contributions and penalties from defaulting employers.
During the quarter, the sum of N336.255 million comprising principal contributions of N125.57 million was recovered from thirty-five (35) defaulting employers.
Meanwhile, the Commission Secretariat/Legal Advisory Services Department had been requested to take legal action against three defaulting employers. From the beginning of the recovery exercise in June 2012 to 30 June 2024, a total sum of N27.97 billion comprising principal contributions of N13.60 billion and penalties (N14.17 billion) was recovered from defaulting employers.
The exercise by the Recovery Agents (RAs) of the commission encouraged no fewer than 38,551 employers across the country to obtain pension and insurance coverage for their workers.
The figure was contained in data obtained from the commission titled, ‘Schedule of employers issued with a certificate of compliance with provisions of the PRA 2014 as of 11 December 2024.”
The employers got the plans for 38,551 workers from January 2024 to December 11, 2024.
They were issued compliance certificates that enabled them to do business with the Federal Government from the beginning of 2024 till the end of December 2024.
PenCom in its compliance guidelines for life insurance policies for employees and submission of insurance certificates issued to employers stated that companies that had no insurance covers for their workers would no longer be allowed to do any government business.
It noted that the regulations would be in addition to ensuring that the companies had appropriate pension accounts for the workers.
It said, “In that regard, the commission issues yearly Pension Clearance Certificates to eligible organisations.
They called on all Ministries Departments and Agencies (MDAs) to ensure that only Pension Clearance Certificates issued by the commission are accepted as evidence of compliance with the Pension Reform Act 2014.”
PenCom’s directive on issuance of a certificate of compliance with the provisions of the Pension Reform Act 2014 to the general public, suppliers, contractors, or consultants bidding or soliciting for contract or business from any Federal Government ministries, departments, and agencies stated that employers must fully comply with the provisions of the law.
