NLC seeks sanctions for defaults in pension remittance

The Nigeria Labour Congress (NLC) has called for sanction on those who failed to remit pension or unauthorised withholding of pension funds.
Its President, Comrade Ayuba Wabba, said non-remittance of deductions or contributions by some employers, including federal and states government, constitute a threat to the pension scheme, subjecting pensioners to untold hardship.
He urged the National Pension Commission (PenCom) to enforce sanctions for non-remittance of pension deductions as and when due.
The NLC chief also asked the Federal Government to lay a good example by promptly remitting its pension funds.
He said: “The federal and state governments and some other employers of labour are in the habit of withholding contributory pension deductions running into several months in arrears.
“The unauthorised withholding of pension funds is a contravention of the Pensions Act 2004 as amended.
“We also urge the federal and state governments and other employers of labour to ensure that pension deductions are promptly remitted to the appropriate organs of the scheme.”
Wabba advised those canvassing for the investment of pension funds in infrastructure to take note that these funds may not be ideal for this purpose as they are invested in Federal Government’s bonds and treasury bills, saying in view of the volatility of the financial market, any investment must guarantee the safety of the funds.
Speaking on the 2017 budget, Wabba urged the government to comprehensively reform its budget process as well as put in place a transparent and accountable system in line with the principles of good governance.
“We urge the government to put in place a more pocket-friendly template on petroleum pricing in consideration of the blow dealt to wages and quality of life by naira devaluation and inflation and the prices of crude in the international market,” he added.