PenCom engages 172 pension recovery agents

The services of 172 debt recovery agents have been engaged by the National Pension Commission (PenCom) its Director General PenCom Mohammad Ahmad, has said.

Ahmad, who disclosed this in Abuja, said the agents have commenced work, adding that the agents who consist of lawyers and accountants would ensure that employers comply with laws on remittance of their workers contributions.

PenCom in a circular said 50 per cent of the interest penalty from outstanding contributions recovered through the efforts of agents will be given to employees with Retirement Savings Account (RSA), while the balance 50 per cent would be use to settle the agents.

PenCom said the balance 50 per cent would be paid to agent to defray the cost of recovery. It noted that PFAs would not be allowed to charge administration fee on retirement savings accounts that benefited from the recovery in the arrears or in retrospect.

It noted that each agent’s performance would be monitored based on set performance standards which would be documented in a Service Level Agreement (SLA) to be executed with the recovery agents. It said recovery agents would be required to submit monthly progress report with respect to recoveries from employers assigned to them, adding the reports would be reviewed to determine if the performance of the agent is satisfactory or otherwise.

PenCom said: “The Commission would hold quarterly meeting with the recovery agents and PFAs to discuss remuneration of recovery agents would be performance based. The remuneration would be met from the interest penalty charged on the outstanding contributions recovered through the efforts of the agents and administration fees charged by PFAs. In that regard, 50 per cent of the interest penalty would be used to defray the cost of recovery while the balance of 50 per cent would be for the benefit of the RSA holder. In addition, PFAs would not be allowed to charge administration fee on RSAs that benefited from the recovery in the arrears or in retrospect.

“Recovery Agents would be required to submit monthly progress report with respect to recoveries from employers assigned to them. The reports would be reviewed to determine if the performance of the agent is satisfactory or otherwise. Challenges encountered and ways forward. The compliance and enforcement department would be responsible for the implementation of the framework in conjunction with other relevant departments in the commission.

“The Commission would provide a secretariat and basic resources such as telephone and internet access for use of the recovery agents. The secretariat would be located in the Commission office. The framework is subject to a periodic review to ensure speedy recovery of un-remitted pension contributions by employers.”