1,877 firms get PenCom’s clearance to do business with MDAs

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A total of 1,877 organisations got the National Pension Commission’s clearance for getting appropriate pension and insurance covers for their employees in the fourth quarter of 2020.

This qualifies them to do business with the Federal Government.

This commission disclosed this in its report titled ‘Issuance of pension clearance certificates’ for the fourth quarter report obtained by our correspondent on Friday.

Part of the report read, “The commission received a total of 1,900 applications from private sector organisations for the issuance of pension clearance certificates.

“Out of this number, PCCs were issued to 1,877 organisations while 23 applications were declined due to inability of the organisations to meet the requirements for issuance of certificates.

“The records show that a total sum of N9.88bn was remitted into the Retirement Savings Accounts of 41,923 employees of the 1,877 organisations.”

PenCom in its compliance guidelines for life insurance policy for employees and submission of insurance certificate issued to employers stated that companies that had no insurance covers for their workers would no longer be allowed to do any government business.

It noted that the regulations would be in addition to ensuring that the companies had appropriate pension accounts for the workers.

PenCom’s directive on issuance of certificate of compliance with the provisions of the Pension Reform Act 2014 to the general public, suppliers, contractors or consultants bidding or soliciting for contract or business from any Federal Government ministries, departments and agencies, stated that employers must fully comply with the provisions of the law.

It said, “In that regard, the commission issues annual pension clearance certificate to eligible organisations.

“The MDAs are reminded to ensure that only pension clearance certificates issued by the commission are accepted as evidence of compliance with the Pension Reform Act 2014.”

In the directive, PenCom stated that in accordance with the provisions of Section 4(5) of the  2014 and Section 5.5 of the guidelines for life insurance policy for employees, employers of labour covered by the PRA 2014 were required to submit copies of the insurance certificates with the schedule of benefits to the commission.


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