Government attitude threatens pension contribution …PenOp
The Pension Fund Operators Association of Nigeria (PenOp) has condemned Federal Government’s poor attitude to the pension industry saying it is a threat to the sector.
PenOp regretted that Federal Government which enacted the Pension Reform Act (PRA) and the largest employer of labour in the country remained a major defaulter of the law.
PenOp had disclosed in its annual report and account 2016, saying “Compliance with regard to remittances of pension contributions from the public sector at both the federal and state levels has lagged notably. While remittances from the Federal Government through the PenCom were last received for September 2015, some states have outstanding remittances dating back over two years.”
The association, however, said private sector remittances had been more consistent though impacted by the adverse economic environment in the country.
PenOp disclosed that most of the federal workers affected were direct employees of ministries and not under the parastals, but were being paid by PenCom with the funds released from the Central Bank of Nigeria.
It was also gathered that the Federal Government had also failed to increase its contribution into the RSAs of workers in the parastals by crediting their accounts with just 15 per cent of their total monthly emolument more than two years after the PRA 2014 mandated employers to contribute 18 per cent.