A pension compliance certificate is issued to any employer of labour under the CPS who is mandated to participate in the CPS and has rightfully complied with the provisions of the PRA 2014 as regards pension administration of its employees.
Benefits of Pension Compliance Certificate
As an employer of labour, complying with the pension law puts you in vantage position. There are numerous benefits to derive from this such as being able to bid for Federal Government works/contracts (exclusively reserved for those who has pension compliance certificate), tax deductibility of pension costs, etc. You can read more on this here, where we further discussed the benefits.
How to Apply for Pension Compliance Certificate
Employers who have complied with the provisions of the PRA 2014 and wish to apply for the Certificate of Compliance should do so in writing to PenCom and along with the following:
1. Certified list of employees as at the end of the last fiscal year by an authorized official of the organization.
2. 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.
3. 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.
From July 2014 to December 2016 – for organizations with 3 to 4 staff.
4. 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.
5. 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).
6. Evidence of valid Group Life Insurance Policy for employees which should include amongst others:
- Policy Certificate
- Policy Document
- Schedule of employees covered by the policy indicating name of employee, total annual emolument, sum assured and premium paid.
Applications can be submitted at the 6 zonal offices of the Commission as follows:
- South-East: Beside Ecobank Plc, opposite Government House Onitsha- Enugu Expressway, Awka, Anambra State
- South-West: 88A, Oduduwa Crescent, GRA Ikeja, Lagos.
- South-South: Plot 9, PCN Layout, Diamond Hill, Calabar Cross River State
- North-West: 22 Kazaure road, Bompai Kano, Kano State
- North-Central: Plot 1, Aderemi Adeleye Streeet, Off Fate Road, GRA, Ilorin, Kwara State
- North-East: Plot 10, Gombe-Biu Road, Gombe, Gombe State.
It is important to note that applications can be successful or rejected by PenCom. Any application that is rejected will be issued a certificate of rejection stating where the problem is. Also a successful application will be issued a Certificate of Compliance. All successfully issued certificates are published on the Commission’s website at www.pencom.gov.ng.