Speaking during the 6th Annual Pension Conference held in Ekiti State and Abuja respectively, the Registrar of ASSOPEP, Dr Chris Egbu noted that the non-remittance of the monthly deductions into the workers’ RSAs for many months, together with the shortfall in remittances, would further deprive the workers the opportunity of earning returns on the monies that would have been invested by their PFAs.
According to Egbu, “Some of the infractions of the law by states and private organisations include.
Non remittance of deducted pensions to Retirement Savings Account while some pay only employees’ deductions without remitting their own ( employers) 10% into the fund. A situation whereby a total of 3.5 million RSAs were irregularly funded in 2020, as monthly pension contributions were either made occasionally or not made at all is unacceptable. Majority of these irregularly funded accounts belong to employees of State Governments and private sector organizations. This means that over 3.5 million employees may have little or nothing to collect on retirement”.
The group commended PENCOM for making a total recoveries of N18.27 billion from 2012 to 31 December 2020 from trapped funds, This figure represents principal contributions of N9.43 billion and penalties of N8.84 billion. About 30 states are without valid group insurance for employee’s contrary to the provision of the Act.
The conference recommends that employees and their unions should be interested in checking their retirement savings account regularly to ensure that their monthly deductions are credited.
“A situation where about 5.1 million RSAs had incomplete documentation as of 2020 means that these people will not have easy access to their fund on retirement”.
On his part, a member of the board of Trustees, Adeola Oloyede called on workers to prepare for their retirement while in employment through regular voluntary savings and investment. He also admonished workers not to invest their hard-earned money on business if they do not have proper understanding or relevant skill to appreciate the risk factors. Many have lost their hard earned money through such Ponzi schemes.”