Pension

PFAs Register 22,432 Micro Pension Contributors In 2020

AISHA DAHIR-UMAR, DG PenCom

BY NKECHI NAECHE-ESEZOBOR–Nineteen Pension Fund Administrators (PFAs) registered 22,432 contributors under the Micro Pension Plan (MPP) as at the end of 31, December, 2020, the National Pension Commission (PenCom) has said.

The pension industry regulator stated this in its report this brought the cumulative number of MPP participants registered between March 2019 and 31 December, 2020 to 62,464.

Giving the breakdown of the MPP registration count revealed that the top 3 PFAs accounted for 49.80% of the total MPP registrations while the top 5 and top 10 PFAs accounted for 69.36% and 88.51% of the total registrations, respectively.

Furthermore, the bottom 3 PFAs accounted for 2.09 % of total MPP registrations while the bottom 5 and 10 PFAs accounted for 4.34 % and 14.21 % of the total MPP registrations, respectively, as at 31 December, 2020.

The commission added that a total of N71,769,125.64 million was credited into the RSAs of MPP participants.

This the commission said  brought the cumulative amount credited into the RSAs of
MPP participants to N89,128,934.38millio as at 31 December 2020.

The breakdown shows that out of 62,423 total RSAs of MPP participants, only 6,270, representing 10.04 % were funded as at the reporting period.

The Commission also expressed worries over the irregular funding of Retirement Savings Accounts (RSAs) by employers as out of the 9.27 million accounts as at December 31, 2020, 3.5 million had funding issues.

PenCom stressed that a total of 3.5 million RSAs were irregularly funded during the year, as monthly pension contributions were either made occasionally or not made at all.

PenCom maintained that majority of these irregularly funded accounts belong to employees of State Governments and private sector organisations.

PenCom noted that as at 2nd quarter 2021, out of the nine states remitting both employers and employees pension contributions, FCT; Osun; Delta; Ekiti; Ondo and Anambra have backlog of remittance.

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