Online Reporter
WHEN Blessing retired after 25 years of service at a reputable logistics company, he looked forward to a comfortable retirement.
He had contributed faithfully to the company pension scheme and assumed his future was secure. Over the years, he occasionally received letters and envelopes marked “Pension Benefit Statement” but never opened them.
“I am still working,” he would say. “I will check everything when I retire.”
When the time finally came to claim his benefits, Blessing was stunned. The pension fund confirmed that contributions for nearly 10 years had not been remitted by his employer.
The company had deducted money from his salary every month, but never forwarded it to the fund. Neither did the company remit the employer’s contribution.
Those missing years drastically reduced his pension. He tried to contest the case, but there was little the fund could do beyond reporting the arrears.
This story is fictional, created to illustrate a common problem faced by many pension fund members.
Yet it mirrors countless real-life cases where workers discover too late that their retirement savings were not being properly managed.
Section 14 (1) (b) of the Pensions and Provident Funds Act [Chapter 24:32] states that the fund should provide “within six months after the end of the financial year or any other shorter period as may be prescribed, the individual members’ annual benefit statement with the minimum disclosures as may be prescribed from time to time . . .”
Typically, the annual benefit statement shows key information such as your opening accumulation at the beginning of the year, contributions received from both the member and the employer or contribution arrears, investment returns and the closing balance at year-end.
If any of these details look incorrect or incomplete, you have the right and the responsibility to query them.
Pension savings grow over decades, so small errors or unremitted amounts can accumulate into large losses.
This statement is not a formality, but your personal financial mirror. Reading it carefully is one of the most important steps you can take to protect your future.
Many workers, however, treat these statements as routine paperwork. Some never open the envelope, others misplace it and many assume that as long as deductions appear on their payslips, everything is in order.
But a payslip only shows that money was deducted; it does not confirm that it reached the pension fund.
The benefit statement does. If Blessing had reviewed his statements annually, he would have noticed the missing years immediately.
He could have raised the issue with the board of fund, his human resources department, or even reported it to the Insurance and Pensions Commission (IPEC) for investigation. Instead, he discovered the truth at retirement, when the damage was irreversible.
The board of fund also relies on members’ feedback to identify problems early. When members do not review their statements, the board of fund may assume everything is in order. Regular checking will keep members informed. It also strengthens transparency and accountability within the fund.
When you receive your annual benefit statement, take a few minutes to confirm that the contributions shown match your payslips and that the employer’s share has been included.
If there are discrepancies, raise them immediately in writing. Keep copies of all correspondence for your records.
The longer you delay, the difficult it becomes to trace missing funds, especially if the employer later closes down or undergoes ownership change.
IPEC continues to receive complaints from pensioners who only realise at retirement that contributions were never remitted.
As of June 2025, contribution arrears across the industry stood at about US$110 million — money that should have been growing in members’ pension accounts.
While IPEC works to enforce compliance, early detection by members remains critical. If you lose your benefit statement or have not been receiving them annually, request it from your pension administrator or human resources department as pension funds are legally obligated to send them to members. You are also encouraged to attend your fund’s annual general meeting (AGM), where the board of fund reports to its members the fund’s performance, present audited financial statements, with members given an opportunity to make contributions and ask questions.
AGMs are not for the board of fund; they are for you, the member, whose future depends on the fund’s performance.
Blessing’s story is a reminder that retirement security begins with awareness. Had he read his statements, he could have intervened years before retirement and protected his savings. Every pension fund member should, therefore, make it a habit to analyse and keep their annual statement.
About IPEC
IPEC is a statutory body established in terms of the Insurance and Pensions Commission Act [Chapter 24:21] to regulate the insurance and pensions industry for the protection of policyholders and pension scheme members.
For feedback or enquiries, please contact us at: [email protected]
