Erring employers to pay 3% charge on unremitted contributions to employees, PenCom

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Chuks Udo Okonta

Erring employers are now to pay two per cent charge on unpaid contribution to Retirement Savings Account (RSA) holder(s) and one per cent to the National Pension Commission (PenCom), amounting to three per cent on every monthly default.

PenCom in a circular on Regime of Sanctions and Penalties for Non-compliance with Pension Reform Act 2014, obtained by Inspen, said employers are to remit employees’ contributions not later than seven working days from the day salary is paid according to Section 11(5B), Sect. 11(7) of the Pension Reform Act (PRA) 2004.

It noted that two weeks after default, employers will make payment of not less than two per cent of unpaid contribution to RSA holder(s) and that one per cent of the outstanding will be payable to the Commission if the default persists after three month.

PenCom noted that employers that refused to give true information according to Section 90 of the PRA will pay a monetary fine not more than N200, 000 for every false or misleading information and N100, 000 each day where the offence continues.

 The Commission also said Sect. 11(1) provides that each employee should open RSA, adding that every employee shall maintain RSA in his or her name with any Pension Fund Administrator (PFA) of his/her choice.

It noted that employers that contravened the rule are to pay N1, 000 after three months per employee for every month of violation.