FROM a deficit of over N2 trillion in 2004, the pension industry has accumulated a pension fund asset worth over N8.23 trillion, the National Pension Commission (PenCom), has disclosed.
Also, the Fund has grown with registered membership of 8.14 million.
The Acting Director General of PenCom, Aisha Dahir-Umar, gave this position at a one-day interactive session on the challenges and future of the Contributory Pension Scheme (CPS), organised in collaboration with Nigeria Employers Consultative Association (NECA) for the members of the Organised Private Sector (OPS) in Lagos.
According to the Acting Director General who was represented by the PenCom Deputy General Manager, Compliance and Enforcement Department, Mr. Salihu Mustapha Bwala, this was the latest growth as at July 2018.
She said the achievement was made possible through the execution of some strategies embarked upon by the commission.
One of the strategies, Dahir-Umar noted was the appointment of Recovery Agents (RAs) to review the pension records of defaulting employers and recover outstanding pension contribution plus penalty.
She said: “I am glad to inform you that the total recoveries by RAs to date is N14.76 billion comprising of principal contribution of N7.53 billion and penalty of N7.23 billion.
“The entire amounts are credited into the workers RSAs. The penalty is meant to compensate the workers for the income that would have been earned, if the principal contributions were remitted as and when due. The recovery exercise which has been largely successful, has boosted the confidence of contributors and encouraged employers to embrace the CPS. We would like to again thank NECA and its members for their cooperation in the course of the recovery exercise.”
She explained that as part of the growth strategies, the Commission has commenced the issuance of Pension Clearance Certificates to organizations in 2012.
“The certificates are renewable annually and serve as a confirmation of compliance with the provisions of the PRA 2014 by an employer. I am glad to inform you that from January 2018 to date, the Commission has received applications from 14,511 organizations out of which 13,469 organizations were issued certificates”, she said.
The PenCom boss added that the 13,469 organizations that were issued certificates remitted the sum of N110.69 billion into the RSAs of 225,366 employees.
She stated further: “We wish to assure employers that the Commission has set up a transparent, efficient and effective process that ensures timely issuance of Certificates to qualified applicants.
“This has been confirmed by the testimony of the Vice President of the Federal Republic of Nigeria, Professor Yemi Osibanjo at the 5th Presidential Quarterly Business Forum for Private Sector Stakeholders at the State House, Abuja on 6 September, 2017.”
In his address, the Director General of NECA, Mr. Segun Oshinowo commended PenCom for always providing the platform for constructive engagements with the stakeholders.
Oshinowo tasked all the stakeholders, including employers and the employees to contribute meaningfully to the success of the scheme and pension operation in the country.
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Title :
Pension industry asset hits N8.23 trillion—PenCom
Description : FROM a deficit of over N2 trillion in 2004, the pension industry has accumulated a pension fund asset worth over N8.23 trillion, the Nationa...
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