Just a few days into the new year, the National Pension Commission, PenCom, has issued certificates of compliance to 207 organizations.
This is contained in a release on the schedule of employers issued with the certificate of compliance with provisions of the PRA 2014 as by the regulator.
A pension compliance certificate, PCC, is issued to any employer of labour mandated to participate in the CPS and has rightfully complied with the provisions of the PRA 2014 on pension administration of its employees.
What you should know
According to the publication by PenCom, in 2020, the Commission received 21,399 applications for Pension Clearance Certificates (PCCs) out of which, 20,936 certificates were issued while 463 applications were rejected due to failure of the applicants to meet the stipulated requirements.
The records confirmed that the sum of N143.33 billion was remitted into the RSAs of 331,499 employees by the 20,963 applicants that were issued the PCCs.
Similarly, in its most recent quarterly report as of 30th June, PenCom said it issued clearance certificates to 19,716 organisations within six months in 2021, records which show that a total sum of N41.97 billion was remitted into the Retirement Savings Accounts of 163,286 employees of the 9,299 organisations.
Why this matters
In accordance with the provision of PRA 2014, the PCC is a prerequisite for providing evidence of remittance of employee’s contribution for suppliers, contractors or consultants who are soliciting for contracts or business from any federal government ministries.
In its compliance guidelines for life insurance policy for employees and the submission of insurance certificates issued to employers, PenCom said companies with no insurance covers for their workers would no longer be allowed to do any government business.
Notably, compliance is not necessary for organizations with less than 3 persons as specified by the PRA 2014 hence, such companies are not issued the PCC.
