The pension industry regulator, National Pension Commission (PenCom) has stated that a total of 10,541 Pension Compliance Certificates, PCC, were granted to organizations in the first quarter of 2022.
According to its first-quarter report for the year, the Commission received 11,200 applications from private sector organizations for the issuance of PCCs. Out of this number, 659 applications were in the approval process as at 31 March 2022.
The records showed that the 10,541 organizations had remitted a total sum of N59 billion into the Retirement Savings Accounts (RSAs) of their employees, totalling 45,170.
Why this matters
- A Pension Compliance Certificate 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 the pension administration of its employees.
- In accordance with the provision of PRA 2014, the PCC is a prerequisite for providing evidence of remittance of employee’s contribution to suppliers, contractors or consultants who are soliciting 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.
What you should know
- The pension industry recorded a marginal growth of 0.96% (92,618) in Scheme memberships during the quarter under review, rising from 9.53 million members at the end of 2021 to 9.68 million as at the first quarter of 2022.
- The growth in the industry membership was driven mainly by the RSA Scheme, which had an increase of 92,852 registered contributors.
- Similar to this, membership of the Closed Pension Fund Administrator (CPFA) Schemes recorded a decrease of 1.44 (234), while Approved Existing Schemes (AES) remained unchanged as of the period.