THE Government has proposed a new law that compels employers to remit pension contributions deducted from their employees within 14 days of the end of each month lest they will be liable to criminal and civil charges.
Company directors or executives ordinarily responsible for pensions could also face liabilities in terms of Criminal Procedure and Evidence Act for failing to remit pension contributions, if the Pensions and Provident Fund Bill is passed into law.
The Bill is currently before Parliament and it seeks to repeal the principal Act. The proposed law provides for the registration, regulation and dissolution of pension and provident funds.
Clause 17 of the Bill seeks to impose penalties on an employer who fails to remit pension contributions deducted from employees.
This is expected to rein in errant employers who have in the past been accruing huge debts to pension funds by not remitting contributions, a situation that has paralysed financial operations of many funds.
The Bill imposes liabilities on office bearers who fail to remit pension contributions.
Any principal officer who fails to report to the Insurance and Pension Funds Commission shall be guilty of an offence and liable to a category one civil penalty.