The National Pension Commission (PenCom) has warned employers and companies in particular against the use of touts and agents in seeking to obtain Pension Clearance Certificates.
The pension industry regulator sent out the alarm in a statement in which it acknowledged a growing increase in the use of unauthorized persons to obtain certificates.
the Commission described the use of touts and agents as illegal and contrary to the provisions of Section 104 (b) & (c) of the Pension Reform Act 2014.
It said the issuance of Pension Clearance Certificate is free of charge and the application process is also very easy and transparent.
The Commission strongly advised employers to deal directly with it on matters relating to applications for issuance of Pension Clearance Certificate.
The Commission further noted that employers wishing to obtain Pension Clearance Certificate are required to forward their application together with certified list of employees of the organization as at the end of the last fiscal year.
The certification should be done with an authorized official of the applicant organization.
They should also provide certified rate of monthly pension contributions (specifying employer and employee rates).
The rates relating to the monthly emoluments are, Minimum of ten percent (10%) by the employer; and b) Minimum of eight percent (8%) by the employee, evidence of remittance of monthly pension contributions for all employees for the last three fiscal years for organizations that were in existence for that period and have three (3) or more staff; and for organizations that have not been in existence for the last three fiscal years, from the date of incorporation/registration/licensing to the last fiscal year.
There should also be evidence of remittance of all outstanding pension contributions and penalties (for late remittance), evidence of transfer of pension fund and assets held prior to the commencement of the Contributory Pension Scheme (CPS) to a licensed pension fund operator.
The certification should be done with an authorized official of the applicant organization
This is ONLY applicable to organizations that had pension arrangements or were in custody of pension assets before June 2004.
Also there should be evidence of current Group Life Insurance Policy procured for the staff of the organization specifying the number of lives and sum assured.
“Applicants are to note that it takes seven (7) working days for the Commission to process applications submitted with full documentation. The application is currently in the process of automation. Until this is completed, Certificates of Compliance can be picked up at the offices where applications were submitted.” PenCom said.
Applicants can track their applications by visiting the Commission’s website where the list of organizations issued Clearance Certificates is updated daily.
