Leave a comment
Chuks Udo Okonta
The National Pension Commission (PenCom) said it rejected the applications of 210 employers who sought compliance certificates to enable them bid for government contracts, because they failed to meet the necessary requirements.
The Commission in a report said it received 1,050 applications for issuance of compliance certificates in the first quarter of this year, of which 840 employers were issued certificates while the remaining applications were rejected on the ground that they did not meet the requirements.
A pension consultant Patrick Igboh has urged penCom to commence issuance of compliance certificates to all employers that are complying with the Contributory Pension Scheme (CPS) and ensure their names are publish for the public to know them.
He noted that issuance of certificates to only those biding for government jobs would not encourage compliance.
PenCom has been issuing Compliance Certificates to Organisations bidding or soliciting for contracts with Federal Government Ministries, Department and Agencies in line with the provision of Section 16 (6) (d) of the Public Procurement Act, 2007. The Certificate has replaced the erstwhile Letters of Compliance that were issued for the same purpose.
Section 16 (6) (d) of the Public Procurement Act, 2007, which states that any supplier, contractor or consultant bidding or soliciting contract or business from any Federal Government Ministries, Department and Agencies (MDAs) must fulfil all its obligations with respect to pensions.
Compliance with the Pension Act, at minimum, include ensuring that all employees open Retirement Savings Accounts (RSA) with Pension Fund Administrator of their choice; remitting both employer and employee pension contributions to the appropriate Pension Fund Custodian not later than seven days from the date of payment of salaries; and transferring all pension funds and assets prior to the commencement of the Pension Act to licensed pension operators.
In view of the importance of this Compliance Certificate, it will be helpful if all stakeholders can understand the items that are required while requesting for this certificate from PenCom.
Specifically, the following documents are to be attached while request: evidence of remittance of monthly pension contribution to include certified list of employees, certified statement of rate of employer/employee pension contribution and schedule of monthly pension contributions for the last three years indicating: names of employees, Retirement Savings Account (RSA) Personal Identification Numbers (PINs), Pension Fund Administrator (PFA) name, amount of monthly employer/employee contribution.
Also required is the schedule of evidence of remittance of monthly pension contributions to RSA for the last three years indicating; date of payment, name of PFA, name and location of receiving bank, payment instrument reference number and amount paid.
Companies requesting for the certificate are equally to provide evidence of transfer of all pension assets of any employee retirement benefit scheme prior to the commencement of the Pension Act to licensed operators, as well as evidence of valid group life insurance policy for employees which should include amongst others; policy certificate, policy documents, schedule of employee covered by the policy indicating; name of employee, total annual emolument, sum assured and premium paid.
It must also be noted that employers are to provide the soft copies of all the required documents.
Pension Scheme, PenCom has constantly been updating the list of organisations that have been issued compliance certificates.
The names of the affected companies are pasted on the commission’s website, having provided evidences of implementation of the Contributory Pension Scheme. The list is being publicised to serve as a guide to all Federal Government MDAs and for information of the general public.