Remittance default: Employers pay N365m penalty
Kusimo Tolu-Omobola by Kusimo Tolu-Omobola March 19, 2019 in Business
For failing to remit pension contribution as and when due to employees, erring employers have paid N365.67 million as penalty to their employees through the National Pension Commission (PenCom)The Nation has learnt.
This, according to PenCom, brings the amount recovered from employers to N14.95 billion.
A report by the commission, said the N365.67 million was received by PenCom in the third quarter of 2018.
The report titled, “Update on the Recovery of Outstanding Pension Contributions and Interest Penalty from Defaulting Employer”, indicated that the commission engaged agents to recover the unremitted pension contributions from errant employers.
The commission engaged the services of 14 Recovery Agents to recoup the outstanding pension contributions with penalties from defaulting employers.
The report read: “Following the issuance of demand notices to the employers whose liabilities had been established by the Agents, some of them had remitted the outstanding pension contributions and penalty.
“During the quarter, the sum of N564.67 million, representing principal contribution of N199.01 million and penalty of N365.67 million were recovered. This brought the total recoveries made to date to N14.95 billion comprising of principal contribution amounting to N7.62 billion and penalty amounting to N7.32 billion.
“The commission continued to apply various strategies to ensure compliance with the provisions of the Pension Reform Act (PRA) 2014. These included the application of sanctions and collaboration with key stakeholders on public enlightenment campaigns as well as engagement of defaulting employers via pension recovery agents employed by the Commission to recover unremitted pension contributions.
Source: The nation newspaper


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