The National Pension Commission (PenCom) and the Nigeria Labour Congress (NLC) Lagos Council has indicated their plans to commence enforcement operations against employers that failed to remit workers’ pension contributions under the Contributory Pension Scheme (CPS) with effect from June 1 this year
The Chairperson of the NLC Lagos Council, Funmi Sesi, gave this hint on Tuesday during an interactive forum with focus on educating labour leaders on the workings of the CPS and compliance obligations under the Pension Reform Act organized by the PenCom in Lagos.
The labour leader decried the continued failure of some government agencies and private sector employers to remit pension deductions to Pension Fund Administrators (PFAs), describing the practice as a violation of labour laws that threatens workers’ financial security after retirement.
The labour leader said: “It is unacceptable that in spite of monthly deductions from workers’ salaries, some employers deliberately fail to remit the funds.
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“The non-remittance of pension contributions constitutes a gross violation of labour laws and abuse of workers’ trust.
“If we need to purchase locks and keys just to ensure compliance and enforcement, we will apply that. We are the voice for the voiceless, the power for workers and the last hope of workers and pensioners”, she added.
Sesi warned that the NLC would mobilise affiliate unions against defaulting employers and vigorously pursue enforcement actions against defaulters for violating the law.
According to her, the planned enforcement action was sequel to growing complaints from workers in Lagos State over non-remittance of CPS deductions from their salaries by their employers to PFAs.
In her remarks, the Director-General of PenCom , Omolola Oloworaran, warned employers against withholding workers’ pension deductions.
The PenCom boss, who was represented by Head of Compliance and Enforcement Department of the commission, Mr. Ahmed Lawan, explained that the CPS was designed to guarantee financial security for workers after retirement.
Oloworaran noted that while the pension scheme had improved retirement administration in the country, some employers continued to frustrate the process through non-remittance of deductions.
She warned: “Deducting workers’ pension contributions without remitting them is a criminal offence under the pension law.”
Oloworaran encouraged workers to report defaulting employers to the NLC and assured them that their identities would remain protected during investigations.
It would be recalled that the CPS was introduced by the government to ensure workers receive retirement benefits promptly and reduce the pension payment challenges experienced under the old system.
