N213.07m recovered from defaulting employers in Q3 2020 – PENCOM

The third quarter (Q3) report released by the National Pension Commission (PENCOM) indicates that the sum of N213,071,826.04 was recovered from 13 defaulting employers.

The recovery was made possible as a result of the issuance of demand notices to the defaulting employers and aggressive follow-ups by the recovery agents appointed by PENCOM for this purpose.

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According to the report, “Following the issuance of demand notices to defaulting employers whose pension liabilities had been established by the Recovery Agents, a sum of N213,071,826.04, (representing principal contributions of N156,533,438.35 and penalty of N56,538,387.69), was recovered from 13 defaulting employers.”

• The amount comprises of principal contributions of N156,533,438.35 and penalty of N56,538,387.69.

• The pension industry in Q3 2020 recorded a growth of 1.18% QoQ in the scheme membership, moving from 9.10 million contributors in Q2 2020 to 9.2 million contributors in Q3 2020, largely driven by the increase of 107, 312 new contributors under the Retired Savings Account (RSA) scheme.

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What you should know

• PenCom, on November 16, 2020, launched a Retirement Savings Account (RSA) transfer system, which is expected to introduce competitiveness/efficiency amongst the operators and flexibility for the contributors to switch between operators, to gain better values and services.
• In Nigeria, employers contribute 10% of the salary and the employee contributes 8%, and a total of 18% is expected to be remitted by the employers every month to the PFAs.

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