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How To Apply For PenCom Compliance Certificate (PCC)

A PCC is typically issued by PenCom to labor employers mandated to participate in the Contributory Pension Scheme (CPS)...

Setting up and running businesses/companies in Nigeria necessitates that certain things be put in place in consideration of employees’ emolument.

The PenCom Compliance Certificate, PCC, also known as the Certificate of Compliance, is one of the key requirements, according to PenCom, the country’s pension industry regulator.

A PCC is typically issued by PenCom to labor employers mandated to participate in the Contributory Pension Scheme (CPS) and who have complied with the provisions of the PRA 2014 on pension administration of their employees.

According to the provisions of the Pension Reform Act, PRA 2014, the PCC is required for suppliers, contractors, or consultants who are soliciting contracts or business from any federal government ministry to provide evidence of remittance of employee contributions.

PenCom stated in its compliance guidelines for life insurance policies for employees and the submission of insurance certificates issued to employers that companies that do not have insurance coverage for their employees will no longer be allowed to do government business.

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

An authorized official of the organization certified a list of employees as of the end of the previous fiscal year.

Certified rate of monthly pension contributions, specifying employer and employee rates i.e. minimum of 10% by employer and minimum of 8% 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 organizations that were in existence for that period and have at least 5 staff, From the date of incorporation/registration/licencing –

For organizations that have not been in existence for the last 3 fiscal years and from July 2014 to December 2016 – for organizations with 3 to 4 staff.

Evidence of remittance of all outstanding pension contributions and penalties.

This is applicable only to organizations 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 organizations 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.

Applicants can also check the Commission’s website, www.pencom.gov.ng, where the list of organizations issued Certificates is updated daily, to see if their applications were successful.

 

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