PenCom declines 23 companies for failure to meet requirements for clearance

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By Favour Nnabugwu

No fewer than 23 applications were declined by  National Pension Commission due to inability of the organisations to meet the requirements for issuance of certificates.

This is their inability of the 23 companies to get clearance for getting appropriate pension and insurance covers for their employees in the fourth quarter of 2020.

PenCom its report titled ‘Issuance of pension clearance certificates’

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.

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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