Requirements For The Issuance Of PENSION Compliance Certificates
Section 2 of The Pension Reform Act PRA 2014 is applicable to all employees in the Federal Public Service, Federal Capital Territory, State and Local Government workers and any private organization with three (3) or more employees.
Requirements Of The Act
It states that all employers affected as above are required to open a Retirement Savings Account (RSA) for employees with a Pension Fund Administrator (PFA) of their choice for the purpose of remitting deducted pension funds.
The Act requires that pension fund be managed only by licensed Pension Fund Administrator (PFA) while the pension fund asset can only be held by licensed Pension Fund Custodian (PFC). The Act also established the National Pension Commission (PenCom) to regulate, supervise and ensure the effective administration of pension affairs in Nigeria.
This contributory pension scheme is mandatory to all employees to which it applies. The rate is a minimum contribution of: a)(8%) deducted from the employee’s monthly emolument; and b) corresponding (10%) paid by the employer. c) This amounts to a total monthly contribution of 18%.
Benefits Of Compliance
Compliance is mandatory for all organisations listed in Section 2 of the Pension Reform Act (PRA 2014) and qualifies organizations who intend to bid for Government contracts or solicit for businesses from any Federal Government Ministry, and Agency (MDAs).
Organisations wishing to be issued the annual pension Compliance Certificate are required to forward their applications to the National Pension Commission along with the following Documents:
- a. A Certified list of employees of the organization, as at the end of last fiscal year. This certification should be done by an authorized official of the applicant organisation.
- b. Certified rate of monthly Pension contributions (specifying employer and employee rates). The rates relating to the monthly emoluments are:
- i. Minimum of 10% by the employer and
- ii. Minimum of 8% by the employee
- c. Evidence of remittance of monthly Pension Contributions for all employees as follows;
- i. For the last three fiscal years for organisations that were in existence for that period and have 5 or more staff.
- ii. For organisations that have not been in existence for the last three fiscal years, from the date of incorporation/registration/licensing to the last fiscal year.
- iii. From July 2014 to December 2016 for organisations with three to four staff.
- d. Evidence of remittance of all outstanding pension contributions and penalties ( for late remittances). This is ONLY applicable to organizations whose Pension contributions have been reviewed by the National Pension Commission or its agent.
- e. Evidence of transfer of Pension Funds and Assets prior to the commencement of the Contributory Pension Scheme (CPS) to a licensed Pension Fund Operator. This ONLY applicable to organizations that has Pension arrangements or were in custody of Pension Assets before June 2004, when the CPS commenced.
- f. Evidence of current Group Life Insurance Policy for staff specifying the number of lives and sum assured.
How To Apply For The PENSION Compliance Certificate
Applications can be submitted at either the Commissions Head Office at Plot 174, Adetokunbo Ademola Crescent Wuse II, Abuja or the following Zonal Offices.
- 1. North – West Zonal Office (Kano) No 22, Kazaure Road, Bompai Kano, Kano State.
- 2. South East Zonal Office (Awka beside ECO Bank Plc), opposite Government House Onitsha – Enugu Expressway Awka, Anambra State.
- 3. South – West Zonal Office (Lagos) 88A Oduduwa Crescent GRA Ikeja, Lagos.
- 4. South – South Zonal Office (Calabar).
- 5. North – Central Zonal Office (Ilorin), Plot 1, Aderemi Adeleye Street, Off Pate Road GRA, Ilori, Kwara State.
- 6. North – East Zonal Office (Gombe) Plot, 10, Gombe – Biu Road, Gombe, Gombe State.
About 15 working days is required 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. Applicants can also confirm if their applications are successful by checking the Commissions website www.pencom.gov.ng where the list of organizations issued Compliance Certificates is updated daily.
Caution: Applicants are strongly advised to deal directly with the Commission in matters relating to the issuance of Pension Clearance Certificates to avoid being defrauded by touts. Applicants can contact the Commissions Compliance and Enforcement Department on +234 (9) 2921535 for further inquiries. Should you encounter any difficulties or are unable to process your Compliance Certificate please do not hesitate to contact any of our approved Professionals by clicking here