Pension assets reach N15.58tr with N24.53b recovered in 9 years
By Jeph Ajobaju, Chief Copy Editor
Pension assets reached N15.58 trillion in March, buoyed by N12.44 billion the National Pension Commission (PenCom) recovered from employers owing their employees in pension contribution plus N12.09 billion as penalties.
PenCom Director General Aisha Dahir-Umar disclosed the sums at the 2023 Labour Writers Association of Nigeria (LAWAN) Workshop in Lagos.
Dahir-Umar, who was represented by PenCom Head of Corporate Communications, Abdulqadir Dahiru, said the recovery was done between June 2012 and March 2023.
“During the first quarter of 2023, N384.28 million (comprising N193.06 million contributions and N191.22 million penalties) was recovered from 34 defaulting employers.
“PenCom is committed to protecting workers’ interests and ensuring that employers pay pension contributions as and when due,” Dahir-Umar pledged.
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Payment of benefits
Dahir-Umar stressed PenCom is committed to ensuring workers receive their retirement benefits in time, as meticulous regulation and supervision of the pension industry facilitate the growth of both pension assets and Contributory Pension Scheme (CPS) membership, per Nairametrics reporting.
Her words: “The value of pension assets stood at N15.58 trillion as at March 31, while CPS membership was 9.95 million.
“In 2022, PenCom launched a policy allowing Retirement Savings Account (RSA) holders to utilise a portion of their retirement savings as equity for mortgages.
“The policy marked a significant milestone in the Commission’s ongoing efforts to provide greater flexibility and access to pension funds for the benefit of RSA holders.
“We recognise that many individuals face challenges in securing adequate housing upon retirement, and we aim to address this issue by unlocking the value of their pension savings to facilitate home ownership.
“Under this new policy, RSA holders who have contributed to their accounts for at least five years and met specific eligibility criteria can utilise up to 25 per cent of their pension savings as equity contribution towards acquiring residential properties.”
Dahir-Umar said the new policy aligns with the commitment PenCom to ensuring pension funds catalyse economic development and social well being.
Under the new policy, RSA holders can access 25 per cent of their RSA balance if they cannot secure another employment after four months of job loss, as partial withdrawal from RSA is to offer immediate support during a difficult period.
The remaining balance in the RSA will continue to grow and accumulate until the RSA holder attains retirement age.
Backstory
PenCom announced in 2022 the final approval for pension contributors in active employment to use 25 per cent of the balance of their RSA for equity contribution for mortgage.
This news came as a huge relief for Nigerians who had been advocating for the use of such fund to pay for residential mortgages.
PenCom explains the approval is in line with Section 89 (2) of the Pension Reform Act 2014 (PRA 2014), which allows RSA holders to use a portion of their RSA balance to pay for equity for residential mortgage.