All businesses must adhere to the legislation regulating the remittance of employees’ pension contributions to retirement savings accounts (RSAs) by December 31, 2023, or risk penalties, according to the National Pension Commission (PenCom).
The panel also stated that fines for employers who don’t make employee pension contributions will be double.
“Section 11 (six) of the Pension Act 2014 states that any employer who fails to remit the contributions within the time prescribed shall, in addition to making the remittance already due, be liable to a penalty to be stipulated by the commission,” PenCom said in a notice.
The amount of the penalty, as specified by the pension law, shall be recoverable as a debt owing to the employee’s retirement savings account as appropriate and shall not be less than 2% of the total contribution that is unpaid for each month or portion thereof that the default continues.
The commission also instructed employers with incomplete remittance documents to supply their PFAs with the necessary information in a document titled “Outstanding Pension Contributions in the Account of Pension Fund Administrators (PFAs)” sent to employers.
The commission noted in a paper it delivered to PFAs that some firms are sending pension contributions for their employees with insufficient documentation, which prevents PFAs from crediting the RSAs of the affected individuals.
