The upward review in the rate of pension contribution from 7.5 per cent to 8 per cent for employees and 7.5 per cent to 10 per cent for employers as amended in the Pension Reform Act 2014 is a slight increase that may not arouse any reaction from employers, Managing Director, FUG Pensions, Usman Suleiman has said.
He spoke withn reporters in Lagos. He said the increase would provide additional benefits to workers’ Retirement Savings Accounts, thereby enhancing their monthly pension benefits at retirement.
He said employers who have been contributing without being prompted or coerced will find it easy to adjust to the new rate adding that there are employers who were contributing 20 per cent when the minimum contribution was 15 per cent.
He said: “All those who are in compliance at present, one will expect them to continue to be in compliance in spite of the increase which is minimal. Those who are not in compliance apparently are not complying because of the differences in the percentage but for other reasons.
“These types of employers are those who do not usually obey the laws. They are the ones that fail to remit PAYE, the taxes deducted from their employees. They fail to remit company tax that they deduct from their suppliers and contractors.
“It will, therefore, not be surprising if they also fail to remit pension. Such employers will have this increase as an excuse but it really should not be an excuse,” he said.
