PenCom Tasks Employers On Timely Remittance Of Contributions
The National Pension Commission (PenCom) has again called on employers of labour to ensure timely remittance of employees’ contributions for a smarter pension industry.
The Director-General, PenCom, Mrs. Aisha Dahir-Umar made the call at the 2022 Stanbic IBTC Pension Managers Employers’ Forum with the theme “Pension Smart: Equipping Employees For a Better Future” in Lagos recently.
Head, South West Zonal Office of PenCom, Dr. Babatunde Alayande, who represented PenCom DG at the event said for pensions to be smart in order to equip employees for a better future, employers are expected by Pension Reform Act (PRA 2014), to ensure the remittance of pension contributions of employees into their Retirement Savings Account (RSAs) within seven days of salary payment.
“Pension contributions are expected to be remitted into the RSAs of employees within seven days of salary payment,” he stated.
According to him, “For pension to be smart employers are also expected to open nominal retirement saving account for employees who has refused to open their own retirement saving accounts and once the nominal RSA is opened on behalf of such employee, the employer is expected to commence pension contribution remittance into that nominal RSA until the employee opens his RSA.
“Pension will be smart if the employers also provide a Group Life Insurance cover for all its employees in order to take care of any risk that may arise or lead the demise of any worker.
“Pension can only be smart if an employer who does not open or makes provision for Group Life Insurance cover makes an alternative arrangement by which insurance claims can be paid, this is also allowable,” he stated.
While giving a brief background about the pension industry and its reforms, Dr Alayande said the pension reform Act 2014 was signed into law to make pension smart in order to make provision for the smooth operation of the Contributory Pension Scheme; to ensure that every person which works in either the public service of the federation, FCT, States, local governments or private sector receives his retirement benefit as and when due; to assist the provident individuals by ensuring that they save in order to cater for their livelihood at old age.
He said “for the proper administration of this pension system to be smarter, there were provisions in the PRA 2014 that make it mandatory for pension laws in Nigeria to be repealed periodically in order to accommodate the major dynamics in the operating environment.
“The PRA 2004 was repealed and the pension industry currently operates on the PRA 2014. In order to avert any confusion about whose responsibility it is to supervise and refer pension matters in Nigeria, the PRA 2014, established the National Pension Commission (PenCom) as the sole regulator and supervisor of all pension matters in Nigeria.
“In addition to the establishment of PenCom, the PRA 2014 also established other institutions like pension fund administrators (PFAs), pension fund custodians (PFCs), closed pension fund administrators, and approve existing schemes, amongst others.
“All these were in addition to the recognition of the roles of the employers and employees in the successful implementation of the contributory pension scheme.”
Earlier in his opening remarks, the Managing Director/Chief Executive Officer,
Stanbic IBTC Pension Managers, Mr. Olumide Oyetan, implored employers to put in place a robust retirement benefits scheme for their employees.
He said having a robust retirement benefits scheme in an organization, demonstrates the employer’s commitment to the future of its employees and this, in turn, improves employees’ loyalty and productivity.
“A lot is currently going on within the pension space and this forum has always been our avenue to discuss and collaborate with various stakeholders to find solutions to various challenges that plagued pension administration as well as improve service efficiency to you as employers as well as employees that you represent.
“We, therefore, encourage all our esteemed employers that are here today to sit back and listen as we take you through various guidelines as recently released by PenCom such as the transfer window framework and other recent development in the pension environment.”
Olumide who implored contributors that are dissatisfied with services offered by their PFAs to take advantage of the transfer window to join the Stanbic IBTC Pension Managers family pledged Stanbic IBTC Pension Managers’ commitment to quality services and clients’ satisfaction.
