Sanlam Life, Unitrust, NSIA Insurance, 590 other firms get PenCom nod for govt’s business

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Chuks Udo Okonta

Having contributed and remitted pension contributions for their employees in 2022, Sanlam Life Insurance Nigeria Limited; Unitrust Insurance Company Limited and NSIA Insurance Limited have been granted permission by National Pension Commission (PenCom) to execute federal government businesses.

The three outstanding firms were among 593 companies issued certificate of compliance by PenCom as at January 27, 2023 to enable them transact business with federal government.

PenCom stated this in a document entitled: Schedule of Employers Issued with Certificate of Compliance with Provisions of the Pension Reform Act (PRA) 2014 as at January 27, 2023, published on its website.

According to PenCom Sanlam Life Insurance Nigeria Limited, contributed and remitted N127.08 million for 168 employees; Unitrust Insurance Company Limited, N75.86 million for 117 employees and NSIA Insurance Limited, N72.67 million for 134 employees.

PenCom noted that Jaiz Bank Plc, with 821 employees, contributed N556.21 million; Setraco (Nigeria) Limited, with 2981 employees, contributed and remitted N524.13 million, while FSDH Merchant Bank Limited, with 184 employees contributed and remitted N236.33 million and Triacta (Nigeria) Limited, with 749 employees, contributed and remitted N117.14 million.

PenCom Certificate of Compliance (PCC) is usually issued by PenCom to employers of labour mandated to participate in the Contributory Pension Scheme (CPS) having complied with the provisions of the PRA 2014 on pension administration of its employees.

In accordance with the provision of Pension Reformation Act, PRA 2014, the PCC is a prerequisite for providing evidence of remittance of employee’s contribution for suppliers, contractors or consultants who are soliciting for 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.

In lieu of this, PenCom requires organisations wishing to obtain the annual Pension Clearance Certificate to forward their application to the commission along with the following documents:

Certified list of employees as at the end of the last fiscal year by an authorized official of the organisation.

Certified rate of monthly pension contributions, specifying employer and employee rates i.e. minimum of 10 per cent by employer and minimum of 8 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 3 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 3 fiscal years and from July 2014 to December 2016 – for organisations with 3 to 4 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.

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