Key highlights
- Amount was recovered from June 2012 to March 31, 2023, with the recovered sum of 44 billion as actual pension contribution and N12.09 billion is penalty
- PenCom launched a policy allowing Retirement Savings Account (RSA) holders to utilise a portion of their retirement savings as equity for mortgages.
- The value of pension assets stood at N15.58 trillion as at March 31, while CPS membership was 9.95 million.
Nigeria’s National Pension Commission (PenCom) has announced that it has recovered the the total amount of money, which which was owed by defaulting employers for their workers.
This was disclosed on Thursday by its Director-General of PenCom, Mrs Aisha Dahir-Umar, at the 2023 Labour Writers Association of Nigeria (LAWAN) Workshop in Lagos.
Represented by Head of Corporate Communications of PenCom, Mr Abdulqadir Dahiru, she stated that N12.44 billion recovered was the actual pension contribution with N12.09 billion as penalty.
Recovery
PenCom stated that the amount was recovered from June 2012 to March 31, 2023, as that of the recovered sum, N12.44 billion is actual pension contribution while N12.09 billion is penalty, the report added:
- “During the first quarter of 2023, N384.28 million (comprising N193.06 million contributions and N191.22 million penalties) was recovered from 34 defaulting employers.
- “PenCom is committed to protecting workers’ interests and ensuring that employers pay pension contributions as and when due” according to its DG
Benefits and Assets
Dahiru-Umar noted that PenCom is committed to ensuring that Nigerian workers would receive their retirement benefits in time, and its meticulous regulation and supervision of the pension industry had ensured that pension assets and the Contributory Pension Scheme (CPS) membership continued to grow, she added:
- “The value of pension assets stood at N15.58 trillion as at March 31, while CPS membership was 9.95 million.
- “In 2022, PenCom launched a policy allowing Retirement Savings Account (RSA) holders to utilise a portion of their retirement savings as equity for mortgages.
- “ The policy marked a significant milestone in the commission’s ongoing efforts to provide greater flexibility and access to pension funds for the benefit of RSA holders.
- “We recognise that many individuals face challenges in securing adequate housing upon retirement, and we aim to address this issue by unlocking the value of their pension savings to facilitate homeownership.
- “Under this new policy, RSA holders who have contributed to their accounts for at least five years and met specific eligibility criteria can utilise up to 25 per cent of their pension savings as equity contribution towards acquiring residential properties” she added.
She added that the new PenCom policy aligns with its commitment to ensuring that pension funds catalyse economic development and social well-being.
Under the new policy, RSA holders could access 25 per cent of their RSA balance to cushion the effect of job loss if they could not secure another employment after four months of job loss, aspartial withdrawal from RSA was to offer immediate support during a difficult period.
The remaining balance in the RSA will continue to grow and accumulate until the RSA holder attains retirement age.
What you should know
Recall that Nairametrics reported last year that The Nigerian Pension Commission (PenCom) announced the final approval for pension contributors in active employment, to use 25% of the balance of their Retirement Savings Account (RSA) in paying equity contribution for mortgage.
This news came as a huge relief for Nigerians who have been advocating for the use of such fund for payment of residential mortgages.
The commission says that the approval is in line with Section 89 (2) of the Pension Reform Act 2014 (PRA 2014), which allowed RSA holders to use a portion of their RSA balance towards the payment of equity for residential mortgage.
