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BUSINESS NEWS: PenCom urges employers on timely pension remittance

BUSINESS NEWS: PenCom urges employers on timely pension remittance

Publish date: 2022-06-22 23:45:50 | Author: Nike Popoola | Source:

The National Pension Commission has urged employers of labour to ensure timely remittance of employees’ contributions.

The Director-General, PenCom, Mrs Aisha Dahir-Umar, spoke during the 2022 Stanbic IBTC Pension Managers Employers’ forum with the theme ‘Pension smart: Equipping employees for a better future’ in Lagos recently.

Dahir-Umar, who was represented by the Head, South West Zonal Office of PenCom, Dr. Babatunde Alayande, said employers were expected by Pension Reform Act 2014, to ensure the remittance of pension contributions of employees into their Retirement Savings Account within seven days of salary payment.

“For pension to be smart, employers are also expected to open nominal retirement savings account for employees who have refused to open their own retirement savings account and once the nominal RSA is opened on behalf of such employee the employer is expected to commence pension contribution remittance into that nominal RSA until the employee opens his RSA.

“Pension will be smart if the employers also provide a Group Life Insurance cover for all its employees in order to take care of any risk that may arise or lead to the demise of any worker.

“Pension can only be smart if an employer who does not open or make provision for Group Life Insurance cover makes an alternative arrangement by which insurance claims can be paid, this is also allowable.”

The Managing Director/Chief Executive Officer, Stanbic IBTC Pension Managers, Mr Olumide Oyetan, urged employers to put in place a robust retirement benefit scheme for their employees.

He said having a robust retirement benefits scheme in an organisation, demonstrates the employer’s commitment to the future of its employees and this, in turn, improves employees’ loyalty and productivity.

Oyetan said, “A lot is currently going on within the pension space and this forum has always been our avenue to discuss and collaborate with various stakeholders to find solutions to various challenges that plagued pension administration as well as improve service efficiency to you as employers as well as employees that you represent.

“We, therefore, encourage all our esteemed employers that are here today to sit back and listen as we take you through various guidelines as recently released by PenCom such as the transfer window framework and other recent development in the pension environment.”

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