Nico Life has disclosed that some companies and institutions owe the company K4 billion in pension contributions with some institutions going over six months without remitting funds.
Nico Life Chief Executive Officer, Eric Chapola, said it is sad that despite deducting pensions from their employees’ salaries, some institutions are still holding the money in their accounts.
Chapola was speaking in Mzuzu, when the company bid farewell to Eurita Chirwa, Mzuzu Branch Manager who has been transferred to Blantyre and has been replaced by Alice Namwera.
Chapola said it becomes pathetic, when employees demand their pension contributions from Nico Pensions, while their companies did not remit the funds.
“We have big arrears from many companies and institutions. These are in billions of kwacha. Through our new innovation, which allows our customers to access their pension contributions information through mobile phone or computer electronically, our customers are always aware if the companies have remitted the funds to us,” Chapola said.
He then added that following the extent of the problem, Reserve Bank of Malawi (RBM) recently intervened by meeting with some institutions and companies asking them to remit pension contributions.
He said other pension administrators have arrears in billions; a development he said affects the employees.
“RBM understands that this money is supposed to be sent through us. We receive and invest so that the contributor gets more interest. This helps because if the employee retires or stops working for a particular company, their life should remain better,” Chapola added.
Meanwhile, Namwera, the new Nico Life Mzuzu Brunch Manager, said she will ensure that the customers in the Northern Region continue getting quality services.
Nico Life Insurance Company Limited is a life insurance and pension administration company that offers a comprehensive range of individual and group life products.