Trustfunds tasks employers on accurate information of contributors

Trustfund Pensions has advised employers to ensure accurate and up-to-date information of their employees, to forestall problems at retirement.

Speaking at an employers’ forum/interactive session in Lagos, the chief compliance officer, Trustfund Pension, Mrs. Rachael Obi, said the challenges some retires are presently facing were a result of improper documentation by employers.

She also stated that deduction of the employee’s contributions should be done not later than seven working days from the day the employee is paid his salary, with due remittance of an amount comprising the employee’s contribution and the employer’s to the PFA of the employee.

The company lamented that some employers have not been complying with the PENCOM guidelines, but rather make deductions and, instead of remitting it immediately, plough the fund back into their business.

She stated that the forum was organised to inform the employers of new guidelines from PENCOM as well as to correct some misinformation, especially on the best way for employees to access their funds after retirement.

Obi explained that many things could stall payment of benefits to retirees, including improper names, multiple PINS, date of birth, unremitted and excess contributions.

The compliance officer advised that, in a case of excess remittances, the employer can instruct Trustfund to use the excess for subsequent remittances or as an addition to subsequent remittances to be made. But in the case of under-remittance, the remittance would not be processed until the complete amount is paid.

Obi also said that pension officers from the employer should always ensure that the information going to the PFA are cross-checked, as well as encourage their workers to monitor their documents with the PFA.

“It is important that the employee, at least six months before retirement, sets all his or her record right with the PFA so that there would not be any delay in the payment to the beneficiary,” she said.

In his presentation, Daniel Onatoye, representing Zenith Pension Custodian, the Trustfund bankers, said unapplied and returned funds have continued to be the bane of the pension industry.

Onatoye said pensioners struggle to get their benefits due to unapplied and returned funds.

He said, “pensioners in Nigeria receive payment instructions from Trustfund, but they don’t get paid due to incomplete information such as non-NUBAN account numbers and incomplete account numbers.

“The  returned funds on the other hand are referred for reasons such as dormant and locked account, beneficiary deceased account and restricted account.”