Pension certificate: PenCom rues firms’ involvement of touts, agents

The National Pension Commission (PenCom) has advised employers and companies to stop using touts and agents in processing and collection of Pension Clearance Certificate (PCC) from its offices.

The pension industry regulatory body said it was illegal and a contravention of the provisions of the Pensions Reform Act of 2014 for employers to engage touts and agents in the PCC collection.

The commission, in a notice to employers and companies dated September 1, 2023, stated: “The attention of the National Pension Commission has been drawn to an increase in the use of touts and agents by employers and companies seeking to obtain Pension Clearance Certificates.

“The use of touts and agents to obtain Pension Clearance Certificate is illegal and contrary to the provisions of Section 104(b)&(c) of the Pension Reform Act 2014. The Commission strongly advises employers to deal directly with it on matters relating to applications for issuance of Pension Clearance Certificate”, it added.

The regulator said it had made it seamless for companies and employers who meet the requirements to obtain the certificate within seven days without constituting a nuisance.

PenCom listed the requirements for processing and issuance of the PCC as including, “certified list of employees of the organization as at the end of the last fiscal year. The certification should be done with an authorized official of the applicant organization.

“Certified rate of monthly pension contributions (specifying employer and employee rates). The rates relating to the monthly emoluments are: Minimum of ten percent (10%) by the employer; and Minimum of eight percent (8%) by the employee.

“Evidence of remittance of monthly pension contributions for all employees as follows: For the last three fiscal years for organizations that were in existence for that period and have three (3) or more staff; For organizations that have not been in existence for the last three fiscal years, from the date of incorporation/registration/licensing to the last fiscal year.

“Evidence of remittance of all outstanding pension contributions and penalties (for late remittance). Evidence of transfer of pension fund and assets held prior to the commencement of the Contributory Pension Scheme (CPS) to a licensed pension fund operator. This is ONLY applicable to organizations that had pension arrangements or were in custody of pension assets before June 2004.

“Evidence of current Group Life Insurance Policy procured for the staff of the organization specifying the number of lives and sum assured”, it added.

The commission also explained that the issuance of the Certificate is free and that it takes seven working days to process applications submitted with full documentation, adding that applications can be submitted at either its head office or any of its zonal offices nationwide.


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