PenCom seeks to institute criminal proceedings against defaulting employers

The National Pension Commission, PenCom, has asked the Attorney General of the Federation for a fiat to institute criminal proceedings against employers who default in remitting pension contributions of their employees to their Retirement Savings Account, RSA.

PenCom in a circular, said that the move will enable it institute criminal proceedings against employers for persistent refusal to remit pension contributions as at when due.

The Commission therefore called for the amendment of Section 11(7) of the Pension Reform Act, PRA 2004, stressing that the present provision is clogged with limitations.

It said, 'Power to institute criminal proceedings against employers for persistent refusal to remit pension contributions: Section 11(7) should be amended to empower the Commission to institute criminal proceedings, with fiat of Attorney General of the Federation, against employers who persistently fail to deduct and/or remit pension contributions within the stipulated time.

'Review of the penalties and sanctions: The sanctions currently provided under Section 85 are no longer sufficient deterrents against infractions of the PRA 2004. Consequently, Section 85 should be amended to provide for stiffer penalties that will serve as deterrents.'

PenCom said 172 debt recovery agents have been engaged to collect unpaid contributions from employers, adding that the agents have commenced work and that they consist of lawyers and accountants.