PENCOM

PENCOM (Pension Commission)

This is the National Pension Commission established by the Pension Reform Act 2014, used to regulate, supervise and ensure the effective administration of pension matters in Nigeria.

 

Requirements for PENCOM Compliance Certificate: –

  1. Certified list of employees of the organisation as at the end of the last fiscal year.
  2. Certified statement rate of monthly pension contributions (specifying employer and employee rates). The rates related to the monthly emoluments are: –
  • minimum of ten percent (10%) by the employer
  • minimum of eight percent (8%) by the employee.

 

  1. Evidence of remittance of monthly pension contributions for all employees as follows: –
  • for the last three fiscal years for organizations that were in existence for the period and have five (5) or more staff.
  • for organizations that have not been in existence for the last three years; from the date of incorporation/registration/licencing to the last fiscal year.
  • from July 2014 to December, 2016 for organizations three to four staff.

 

  1. Evidence of remittance of all outstanding pension contributions and penalties (for late remittances). This is only applicable to organisations whose pension contributions have been reviewed by the commission or its agent.
  2. Evidence of transfer of pension fund and assets prior to the commencement of the Contributory Pension Scheme (CPS) to a licensed pension fund operator. This is only applicable to organisations that had pension arrangements or were in custody of pension assets before June 2004, when the CPS commenced.
  3. Evidence of a current Group Life Insurance Policy for staff specifying the number of lives and sum assured.
  4. One month payroll.

Procedure:

  • An application letter addressed to the Director General of the commission requesting for a Pencom certificate for the current year should be written.
  • Another letter stating the certified employees for the period (including the number of months each employed worked for the company) is compiled.
  • A third letter stating the employee and employer’s contribution, and any voluntary contribution is also compiled.
  • All the letters are then burnt into a compact disk with the necessary documents.
  • The CD alongside hard copies of all documents burned in the CD are then taken to the Pencom office for submission.
  • An acknowledgement copy is received after submission.
  • The Pencom certificate should be ready for collection a month after submission.