The National Pension Commission (PenCom) has reported significant success in its efforts to address uncredited contributions under the Contributory Pension Scheme (CPS), recovering approximately N12.9 billion in principal contributions and N12.5 billion in penalties since 2012. The recovered funds have been diligently credited to individual Retirement Savings Accounts (RSAs), ensuring that workers receive their entitled retirement benefits. PenCom remains steadfast in enforcing compliance despite challenges posed by non-remittances and uncredited contributions, prioritizing the interests of RSA holders.
The CPS has achieved a noteworthy milestone, surpassing N18 trillion in pension assets, marking a significant enhancement in retirement benefits for contributors. Ibrahim Garba Buwai, representing the director-general of PenCom, highlighted the robustness of the CPS during the 2024 annual general conference of the Abuja chapter of the Finance Correspondence Association of Nigeria. He emphasized that pension assets represent the hard-earned savings of over 10.1 million contributors, showcasing the scheme’s transparency and accountability.
Buwai commended the media’s positive reportage of PenCom’s activities and reiterated the commission’s commitment to transparency and effective pension fund management. He stressed the importance of collaboration with the media to bridge information gaps and dispel misconceptions about the CPS. Addressing concerns about infrastructure investments, Buwai clarified that strict guidelines prohibit direct investment in infrastructure, and pension fund managers make investment decisions based on stringent regulations set by PenCom.
Acknowledging challenges in remitting deductions from employees, Buwai emphasized the role of RSA holders in monitoring remittances and encouraged reporting discrepancies to PenCom. Penalties for late remittances were highlighted, underscoring the commission’s dedication to enforcing compliance. Regarding uncredited contributions, Buwai expressed concern and urged employers to rectify discrepancies, ensuring proper crediting of employees’ contributions to their accounts.
In conclusion, Buwai reiterated PenCom’s commitment to ensuring the safety and efficiency of pension funds, along with its dedication to promoting financial literacy and retirement planning among Nigerians.
