The National Pension Commission (PenCom ) has issued a strong warning to firms that make deductions from employees salaries under the Contributory Pensions Scheme, CPS, but failed to remit same to the employees preferred Pension Fund Administrator, PFA, that it will apply sanctions against such firm in accordance with the Pension Act.
The agency also reminded employers that they were under an obligation to open Group Life Insurance for their employees.
Issuing the warning in Lagos during Employers Forum organised by IBTC Pension Managers Limited, Mr. Lanre Ogidingbe, senior manager south – west zonal office of PenCom, noted that for over 13 years the scheme has not recorded any fraud because it has in place stringent regulations and tight control process that will not allow any form of leakages or fraud.
Ogidingbe said there had been cases of withheld deductions but the agency has a recovery mechanism through which such deductions are recovered and remitted accordingly but said such also attracts penalties.
“PenCom is effectively managing the pension fund well so we implore employers to support this effort by demonstrating genuine commitment towards building a virile pension industry for the country,” he advised.
Ogidingbe informed employers that remittances are expected to be made to PFAs 7 days after payment of salaries, just as he said that the employer under the Act should maintain Group Life insurance for workers failure of which is punishable.
In her presentation Mrs. Nike Bajomoh, head, Business Development of IBTC Pension Managers Limited lamented low penetration of the present scheme despite its advantages to workers.
She said her firm is the foremost Pension manager in the country with a track record of maintaining effective pensions payment to retirees.
She used the forum to advise employers to support government efforts of ensuring retirees have a befitting and robust retirement after years of labour. (Leadership)