The National Pension Commission (PenCom) has reminded employers of their obligations to remit all pension deductions as breach has consequences.
The agency has also called on employees to ensure that all pension contributions deducted from salaries contributed by employers are remitted to the Pension Fund Custodian (PFC) by the Employer not later than seven (7) working days from the date of payment of their salaries.
The commission consequently urged employees to report to it whenever there is Default in remittance of such contributions.
PenCom in a statement signed by its Head of Coporate Communication, Peter Aghahowa noted, “This is to remind all employees in the Public Service of the Federation, Federal Capital Territory and States that have implemented the Contributory Pension Scheme as well as private sector, that it is their rights; under Section 4(5) of the PRA 2014 to have Life Insurance Policy taken on their behalf by their employers for an insured amount of not less than three (3) times their annual total emolument.
Please note that employees are also required to ensure that all pension contributions deducted from salaries and/or contributed by employers are remitted to the Pension Fund Custodian (PFC) by the Employer not later than seven (7) working days from the date of payment of their salaries.
Employees are therefore advised to report to the Commission where the employer fails to:
• Procure the minimum required Life Insurance Policy in their favour;
• Submit the evidence of compliance with Life Insurance Policy to the Commission and place the certificate in a conspicuous place within the organization.
• Remit the deducted pension contributions into their Retirement Savings Accounts”, it stated.