Pension Sector Adds 3,555 Contributors, 19 Firms For Sanction In Q2.

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The National Pension Commission (PenCom) has recovered a total of N398, 006, 984.46 from 31 defaulting firms while another 19 employers have been listed for legal action over their failure to contribute and remit deductions from their workers’ salaries.

Also, a fresh 3,555 contributors from 19 Pension Fund Administrators (PFAs) have been added under the Micro Pension Plan (MPP), thus deepening the contributions to the pool according to the 2021 second-quarter report of the Pension regulator.

In the period also, six PFAs processed and approved requests for contingent withdrawals of N1,992,674.30 from nine MPP contributors.

Breakdown of the recoveries so far reveals N243,396,311.27 principal contribution while the penalty on the 31 firms was N154,610,673.19 were recovered from 31 defaulting employers.

The recoveries together with the contributions for the quarter resulted in 0.89 per cent marginal growth and the new 83,146 schemes membership for the quarter.

The new additions grew the 9.36 million members in the first quarter of 2021 to 9.44 million by the end of June 2021.

The sector growth was driven by the RSA Scheme that registered fresh 83,146 contributors. The regulator that Membership of the Closed Pension Fund Administrator (CPFA) Schemes and Approved Existing Schemes (AES) remained unchanged as of June of 2021.

For the period, the total pension contributions remitted to individual RSAs in the second quarter stood at N195.08 billion of which the public sector accounts for N97.17 billion or 49.81 per cent, and the private sector contributed N97.91 billion or 50.19 per cent.

The accruals in the second quarter cumulatively brought the pension contributions from inception to the end of the second quarter of 2021 amounted to N7.10 trillion from N6.70 trillion of the first quarter 2021.

According to PenCom, during the quarter, 27 micro pension participants converted to the mandatory CPS and the sum of N834,172.19 was transferred to their respective RSA’s. This is in addition to 17 micro pension contributors that converted N703,922.90, the contingent portions of their RSAs to retirement benefits.

In the main, the total value of Pension Fund assets as of 30 June 2021 was N12.66 trillion comprising N8.92 trillion in RSA’ Active’ Funds (i.e., RSA Funds I, II III and V); N990.51 billion in RSA Retiree Fund; N1.46 trillion in CPFAs; and N1.29 trillion in Approved Existing Schemes (AES) Funds.

The assets were invested mainly in Federal Government Securities (FGN), accounting for 66.96 per cent of total assets, adding that the composition of investments in FGN Securities was as follows: FGN Bonds: 92.20 per cent; Treasury Bills: 6.47 per cent; and Agency Bonds, Sukuk and Green Bonds accounting for 1.33 per cent

 

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