You are here:CategoriesLocal NewsOver 600 private sector companies fail to remit K6 billion pension contributions since June 30

Over 600 private sector companies fail to remit K6 billion pension contributions since June 30

Written by  MBC Online

About 610 private sector companies have failed to remit K6.263 billion pension contributions as of June 30 this year, the Registrar of Financial Institutions Dalitso Kabambe, says, publicly showing his concern about this development.

Kabambe: Not amused with K6 billion pension contributions arrears. Kabambe: Not amused with K6 billion pension contributions arrears.
21
August


“The Registar is seriously concerned about the non-remittance of the pension contributions as it negatively affects the accumulation of retirement savings for pension members,” Kabambe, who is the Governor of the Reserve Bank of Malawi (RBM), said in a published statement with names of 610 companies and outstanding amounts.

 

The register said he will “consider further actions to enforce compliance if these companies do not clear the pension contribution arrears by 30th November, 2019.”

 

He said in line with Government Notice No.33, the outstanding contributions “should be paid with a penalty interest of Reserve Bank of Malawi policy rate plus ten percent for the period the contributions had been outstanding.”

 

The Registrar warned eligible employers that have not yet placed their employees on the national pension scheme that they risk prosecution when found.

 

The Registrar has the mandate to enforce compliance with the Pension Act, 2010, while Section 61 of the Pension Act, 2010, requires employers to remit to a trustee of a pension fund both employer and employee pension contributions within 14 days from the end of the month contributions fall due.

 

While many companies owe the Registar in thousands, two companies in the media industry have arrears in excess of K200 million.

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