CEM REPORT, FINANCE | The National Pension Commission (PenCom) has revealed that 13,126 disengaged workers exercise their right and withdrew 25 per cent of their retirement savings.
The sum which totalled ₦12.72 billion was withdrawn within the first quarter of the year (Q1’23).
According to the PenCom’s Q1’23 report, Federal and State governments had 259 and 211 disengaged workers, while the private sector had a total of 12,656 disengaged workers in review quarter.
“The department granted approval for the payment of N12,717.90 million (being 25 percent of their RSA balances) to 13,126 RSA holders under the age of 50 years, who were disengaged from employment and unable to secure another job within four months.”
PenCom also said the total pension contributions remitted to individual RSAs was N225.49 billion, in the first three months of the year.
According to the commission, the private sector contributed N100.79 billion, while the public sector was responsible for N124.7 billion.
This amounts to “the cumulative pension contributions from inception to the end of Q1 2023 at N8.7 trillion.”
In the quarter under review, PenCom said the services of recovery agents (RAs) were engaged for the recovery of unremitted pension contributions and penalties from defaulting employers.
“Demand notices were issued to defaulting employers whose pension liabilities were established by the recovery agents. During the quarter, N384.28 million, comprising principal contributions (N193.06 million) and penalties (N191.22 million) was recovered from 34 defaulting employers,” the agency said.
“Meanwhile, four defaulting employers were forwarded to the Commission’s secretariat/Legal Advisory Services Department for prosecution. From the commencement of the recovery exercise in June 2012 to 31 March 2023, a total of N24.53 billion, comprising principal contributions of (N12.44 billion) and penalties (N12.09 billion) was recovered from defaulting employers.”