N103.4b pensions remittances made in first quarter-PenCom
The National Pension Commission (PenCom), has revealed that 4,487 organisations have remitted N103.47 billion pension contributions into the Retirement Savings Accounts (RSAs) of 119,865 employees.
Organizations are rushing to make these remittances in order to secure the PenCom Certificate of Compliance (PCC) necessary for them to bid for Federal Government contracts or business.
The cash was remitted in the first quarter of this year and PenCom requires companies to show certification and proof of payment to receive the PCC certificate.
Companies without insurance for their workers will be unable to qualify for government business.
PenCom also requires organisations to apply for the yearly PCC certification with a certified list of its employees, information about their rate of contributions, proof of remittance of outstanding pension contributions and penalties, transfer of pension fund and assets and Group Life Insurance Policy for employees that provides a certificate of group life, policy document, and the evidence of payment.
Processing time for an application is 15 working days.
This revelation is contained in PenCom’s Update on Compliance by the Private Sector Quarterly Report.
The report read: “The Commission within the first quarter, 2023 processed and issued a total of 4,487 PCCs to organisations that met the requirements and N103,469,914,514.26 was remitted into the Retirement Savings Accounts (RSAs) of 119,865 employees of the 4,487 organisations issued PCCs”.
PCC is usually issued to employers mandated to participate in the Contributory Pension Scheme (CPS), having complied with the PRA 2014 on pension administration.
PenCom said companies without insurance covers for their workers would not be allowed to do any government business.
In view of this, PenCom requires organisations who wish to obtain the yearly PCC to apply to the commission with a certified list of its employees.
They are also to add a “Certified rate of monthly pension contributions, specifying employer and employee rates like minimum of 10 per cent by employer and minimum of eight per cent by the employee.’’
“Evidence of remittance of monthly pension contributions for all employees showing the date of payment or remittance, names of employees, RSA Personal Identification Number (PIN) of employees, name of Pension Fund Administrator (PFA) and amount paid/ on behalf of employer and employer which will cover as follows: For the last three fiscal years – for organisations that were in existence for that period and have at least three staff, From the date of incorporation/registration/licencing – For organisations that have not been in existence for the last three fiscal years and from July 2014 to December 2016 – for organisations with three to four staff.
“Evidence of remittance of all outstanding pension contributions and penalties. This is applicable only to organisations whose/ pension contributions have been reviewed by PenCom or its agent and found to be culpable. Evidence of transfer of pension fund and assets prior to the commencement of the CPS to a licensed pension fund operator. This is applicable only to organisations that had pension arrangements before June 2004 when the CPS commenced.
“Evidence of valid Group Life Insurance Policy for employees which should include amongst others: Certificate of group life, policy document and the evidence of payment. Applicants are to note that it takes 15 working days from the date of receipt for an application to be processed. Certificates or rejections can be picked up at the offices where the applications were submitted”, the commission noted.
