PenCom Levies N12 Billion for Transition Pension Funds Amidst Bankruptcies and Other Parties

In order to retrieve N12 billion from the transition contribution funds (TCF) in their care, former employees of the nation’s bankrupt enterprises are encouraged to contact their pension fund administrators (PFAs), according to a recent advisory from the National Pension Commission (PenCom).

The defunct organizations, whose employees have not yet claimed their benefits, include Diamond, Intercontinental, Citizen, Mainstream, and Oceanic Banks, according to the commission.

Aisha Daniel-Umar, Director-General of PenCom, stated during a media briefing hosted by the Pension cash Operators (PenOp) that N58 million of the N12 billion had been paid to beneficiaries’ retirement savings accounts (RSAs) who had submitted the required paperwork for cash disbursement.

“In September, what we did was put a list of all the beneficiaries on our website according to each PFA where these funds are located and we expect beneficiaries to search their names there and approach the PFAs for payment,” stated the DG, who was represented by Ehimeme Ohioma, Head of the Investment Supervision Department.

She went into detail about the payment procedure, explaining that PFAs—especially those employed by other organizations that already have RSAs—are not permitted to make cash payments and must instead transfer money to the RSAs.

Daniel-Umar stated, “The majority of them are employed by other organizations and possess RSAs, so it can be transferred as soon as they make their documents available.”

The commission’s hired recovery agents were responsible for the unclaimed fund finding; the PFAs are currently in possession of the funds.

Daniel-Umar gave an assurance that the commission constantly makes sure pensioners receive their money before the 25th of every month, or earlier, with regard to pension payments made under the CPS. He underlined the value of providing high-quality services and said that attending to contributors’ concerns is essential to the development of the sector.