The National Pension Commission (PenCom) and Nigeria Labour Congress (NLC), Lagos State Council, have agreed to tackle the persistent non-remittance of pension contributions by employers in both the public and private sectors, warning that employers’ failure to meet obligations would no longer be tolerated.
The effort was disclosed during an interactive session on the Contributory Pension Scheme (CPS), organised by PenCom and attended by the executives of the NLC, Lagos chapter, on Tuesday in Ikeja, Lagos.
CPS, which commenced in June 2004 under the Pension Reform Act, is a structured retirement plan in which both employers and employees make monthly contributions to an individual Retirement Savings Account (RSA) managed by a Pension Fund Administrator (PFA) in Nigeria.
The total minimum contribution is 18 per cent of the employee’s monthly emolument, while the workers receive their retirement benefits when due, mostly after retirement.
Speaking at the event, the Head of Compliance and Enforcement Department at PenCom, Ahmed Lawan, who represented the Director-General of PenCom, Omolola Oloworaran, said the CPS had transformed pension administration from a mere promise into a funded and enforceable obligation.
