The Contributory Pension Scheme is an excellent scheme that ensures you and your employer contribute towards your retirement. The contributory idea is perfect where the employer deducts your pension contributions at source, add the employer’s contribution, and remits as at when due to your Pension Fund Administrator (PFA).
The Pension Reform Act 2014, makes it mandatory for every employer in the formal sector to remit employees’ pension contributions to their Pension Fund Administrator within 7 working days after payment of salaries.
A non-compliant employer that fails to remit employees pension contributions as stipulated by the PRA 2014 has committed an offence and is liable to a fine or imprisonment or both.
If your employer fails to remit your pension contributions to your PFA as at when due and or they don’t have group life insurance for their employees, it will greatly affect your chances of being able to access your pension when you retire. Concerned Retirement Savings Account holders are to report such employers to the National Pension Commission.
From our experience, we advise you write to the Commission, drop the physical letter at any of their offices closet to you, ensure you collect the acknowledged copy and use that to follow up with the Commission to ensure your issue is resolved. See PenCom addresses here.