Section 11: RETIREMENT SAVINGS ACCOUNT AND REMITTANCE OF CONTRIBUTION

(1)
Every employee to whom this Act applies shall maintain an Account, (in this Act referred to as "Retirement Savings Account") in his name with any Pension Fund Administrator of his choice.
(2)
The employee shall notify his employer of the Pension Fund Administrator chosen and the identity of the retirement savings account opened under subsection (1) of this section.
(3)
The Employer shall-
(a) deduct at source the monthly contribution of the employee; and
(b) not later than 7 working days from the day the employee is paid his salary, remit an amount comprising the employee's contribution under paragraph (b) of this subsection and the employer's contribution to the Pension Fund Custodian specified by the Pension Fund Administrator of the employee.
(4)
Upon receipt of the contributions remitted under sub-section (3)(b) of this Section, the Pension Fund Custodian shall notify the Pension Fund Administrator who shall cause to be credited the retirement savings account of the employee for whom the employer had made the payment.
(5)
Where an employee fails to open such Retirement Savings Account within a period of six months after assumption of duty, his employer shall, subject to guidelines issued by the Commission, request a Pension Fund Administrator to open a nominal retirement savings account for such employee for the remittance of his pension contributions.
(6) An employer who fails to deduct or remit the contributions within the time stipulated in subsection (3) (b) of this Section shall, in addition to making the remittance already due, be liable to a penalty to be stipulated by the Commission.
(7)
The penalty referred to in sub-section (6) of this section shall not be less than 2 per cent of the total contribution that remains unpaid for each month or part of each month the default continues and the amount of the penalty shall be recoverable as a debt owed to the employee's retirement savings account, as the case may be.
(8)
An employee shall not have access to his retirement savings account or have any dealing with the Pension Fund Custodian with respect to the retirement savings account except through the Pension Fund Administrator.
(9)
The Commission shall determine the cost of recovery of unremitted contributions and the sources to defray the cost, which may include the amount recovered as penalty pursuant to sub-section (6) of this section.