The House of Representatives on Tuesday resolved to investigate alleged non-remittance by employers of workers’ contributions to Pension Fund Administrators.
The resolution emanated from a motion entitled: “Threat to the Continuation of the Contributory Pensions Scheme by Non-Remittance of Workers Contributions by Employers.”
The motion, which was sponsored by Rep. Joseph Edionwele (PDP-Edo), was unanimously adopted by the lawmakers.
It will be recalled that the Pension Reform Act of 2004 established a contributory pension scheme for the payment of retirement benefits of employees in public service and private sector.
Edionwele decried the alleged non-remittance by employers to PFAs, saying it would jeopardise smooth and successful operations of the pension scheme.
According to him, this appears to be in breach of the Pension Act and will also cause hardship to pensioners.
“Eleven years into the scheme, some ministries and private businesses are not remitting to Pension Fund Administrators,” he said.
The lawmaker, therefore, urged the House to investigate the matter and sanction all defaulters.
“There is need to investigate and sanction them,” Edionwele said.
He said that the scheme required employers and employees to contribute equally to the total 15 per cent in the Principal Act of 2004.
The Speaker, House of Representatives, Yakubu Dogara, in his ruling, mandated the Committee on Pensions to investigate the allegations.
The committee is also to obtain a comprehensive report on the operations of the scheme, including list of defaulting employers and the amount involved and report back within six weeks.
NAN.
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