Pensions: States failed to remit N3.4bn deducted from workers’ pay, says PenCom

States operating the Contributory Pension Scheme refused to
remit about N3.4bn pension contributions deducted from their
workers monthly remunerations into their respective Retirement
Savings Accounts with their Pension Fund Administrators.

The acting Director-General, National Pension Commission, Aisha
Dahir-Umar, disclosed this during the second quarter consultative
forum for states in Lagos on Wednesday.

The forum was attended by pension compliance officers and other
stakeholders from different states and pension fund operators’
offices.

She also said that N8.09bn was remitted as pension contributions
in the first quarter of 2019.

Dahir-Umar said, “Based on PFAs’ returns, over N3.4bn pension
contributions are uncredited into state employees’ RSAs as of May
31, 2019, and the age analysis showed that over 38 per cent of this
amount had been outstanding for over one year.

Dahir-Umar, who was represented by the Head, States Operations
Department, PenCom, Dan Ndackson, said a major item, which should
occupy a pride of place during deliberations, was the recurring
issue of uncredited remittances, which denied concerned employees
the investment income that should have accrued to them.

She added that it was heart-warming to observe the steady
progress of the implementation of the CPS in the states, especially
with regards to the remittance of pension contributions.

“Returns submitted to the commission by the PFAs showed that
over N8.09bn was remitted to them as pension contributions of state
employees in the first quarter of 2019,” she said.

The PenCom boss informed that the second quarter had recorded
remarkable achievements in ensuring seamless implementation of the
CPS in states.

In this regard, she said the commission, as part of its mandate
of supervising the smooth implementation of the CPS and to ensure
excellent service delivery, especially in state pension
administration, introduced branch inspection of PFAs in states.

Dahir-Umar reported that the commission had so far conducted
three of such branch inspections in Edo, Ondo and Ekiti states.

“As more inspections of PFA branches are upcoming, the
commission is currently utilising the outcomes of these inspections
in ensuring that PFAs take the necessary remedial actions to ensure
excellent service delivery in the pension industry,” she said.

She added that the commission’s collaboration and concerted
efforts with various states had led to significant in-roads in the
areas of stakeholder engagement, capacity development and
implementation milestones.

Notable among the many achievements within the second quarter
were the meetings held with the governors-elect (now governors) of
Lagos and Bauchi states, she mentioned.

Dahir-Umar said, “We are also pleased to note the giant stride
taken by the Benue State Government recently by enacting the Benue
State Pension Reform Law 2019, in May 2019.

“Besides joining the league of states that have commenced the
process of implementing the CPS, the Benue State Law incorporated
all the observations made by the commission in the draft bill
before passage into law.

“We are, therefore, confident that with this sound and
sustainable legal framework in place, Benue State’s implementation
will not face major challenges.”

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