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Law to criminalise pension abuses out soon

by Business News Report

Director-General, National Pension Commission (PENCOM) Mr Muhammad Ahmad,, has disclosed that a proposal for an amendment of the Pension Reform Act to prosecute abuses by employers is in the works.
He made the disclosure in Abuja at the ongoing public hearing by the Senate Joint Committee investigating pension administration in Nigeria. He stated that the proposal was aimed at ensuring that individuals and employers who defaulted in remittance of pension were punished according to the law.
“ What we want to do as part of this public hearing is to get the National Assembly to amend the Pension Reform Act to make it a criminal offence for non-remittance. This is to provide a legal framework so that individuals/employers that are responsible for non-compliance with the guideline could be prosecuted, ‘’ he said. Ahmed also said that the commission would soon embark on a nationwide exercise to make it mandatory for employers to ensure compliance with the contributory pension scheme.
He said PENCOM was committed to collaborating with relevant agencies to ensure that those responsible for the abuses in the old pension scheme were brought to book.
“We’ve selected about 50 accountants, lawyers and debt collectors. They will go to different parts of this country and make sure that any employer that deducts and fails to remit is compelled to do so. At the end of the public hearing, the recognition of payment of pension will come to limelight and those that are responsible for paying pension especially under the old scheme will be held accountable. The PENCOM boss gave the assurance that necessary safeguards had been put in place to guarantee the safety of all pension assets which stood at N2.4 trillion.

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