PenCom kicks against engagement of touts during clearance exercise
The National Pension Commission, PenCom, has raised concerns over the increase in the use of touts and agents by employers and companies seeking to obtain Pension Clearance Certificates. Accordingly, the Commission, warned that the use of touts and agents to obtain a Pension Clearance Certificate is illegal and contrary to the provisions of Section 104 (b) & (c) of the Pension Reform Act 2014.
The commission said the issuance of a 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 Certificates.
The Commission further noted that employers wishing to obtain a Pension Clearance Certificate are required to forward their application together with a certified list of employees of the organization at the end of the last fiscal year.
The certification should be done by an authorized official of the applicant organization.
They should also provide a certified rate of monthly pension contributions (specifying employer and employee rates).
The rates relating to the monthly emoluments are a minimum of ten percent (10%) by the employer; and b) a 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/
There should also be evidence of remittance of all outstanding pension contributions and penalties (for late remittance) and evidence of transfer of pension fund and assets held before the commencement of the Contributory Pension Scheme (CPS) to a licensed pension fund operator.
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 the 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.
