The National Pension Commission (PenCom) has called on former employees of defunct companies to reclaim N12 billion in Transition Contribution Funds (TCF). Out of this amount, only N58 million has been recovered and transferred to beneficiaries. This call was made during a media parley organized by the Pension Fund Operators (PenOp) under the theme, “At the Dawn of 20 years of Pension Reform: What Are The Gains.”
Key Points:
- Unclaimed Funds: Former employees of defunct companies, including Diamond Bank, Intercontinental Bank, Citizen Bank, Mainstream Bank (former Afribank), and Oceanic Bank, are yet to claim N12 billion in Transition Contribution Funds.
- Recovery Efforts: PenCom has engaged recovery agents to trace beneficiaries, and a list of beneficiaries has been published on the Commission’s website. So far, N58 million has been recovered and transferred to the Retirement Savings Accounts (RSAs) of eligible individuals.
- Challenges in Locating Beneficiaries: Many beneficiaries are challenging to locate as the defunct companies have undergone mergers, acquisitions, or no longer exist. PenCom encourages beneficiaries to check the website and approach their respective Pension Fund Administrators (PFAs) for payment.
- Payment Process: PFAs are prohibited from making cash payments and must transfer funds to RSAs. The process involves beneficiaries providing necessary documents, and funds can be transferred, especially for individuals working in other institutions with existing RSAs.
- Data Recapture Exercise: PenCom is conducting a Data Recapture Exercise to have a credible database of contributors under the Contributory Pension Scheme. Despite challenges, the Commission aims for significant success by the first quarter of 2024.
- Resolution of Uncredited Contributions: PenCom and PenOp are working to reconcile and resolve long outstanding uncredited contributions of employees. About N22 billion of these contributions have been resolved and credited into RSAs from September to October.
- Pension Payment Assurance: The Commission assures that pensioners under the Contributory Pension Scheme receive their funds on or before the 25th of each month.
- Investment Challenges: PenCom acknowledges limited investment windows for pension funds and is actively engaging stakeholders in the capital market to address these challenges.
Conclusion: The call by PenCom for former employees to reclaim unclaimed funds highlights ongoing efforts to ensure transparency, recovery, and efficient pension fund management. The Commission’s commitment to resolving outstanding contributions and engaging stakeholders reflects its dedication to the success of the pension industry.
