“Efforts should be on top gear to ensure that Insurance companies comply with the provision of the law Pension Commission had mandated all the firms seeking to bid for Federal Government contracts to provide evidence of implemetation of of CPS.”
Stakeholders have commended Government on the decision that presentation of Pension Compliance Certificate is compulsory for award of government contracts and similar benefits.
They also urge government to ensure strict, continuous adherence to the policy.
Speaking exclusively to The UNION Tuesday, The Managing Director, First Guarantee Pension Ltd Mr Jude Akalezi lauds the National Pension Commission (PenCom) for the process they take in issuing Complaince certificates to firms.
He however said that efforts should be on top gear to ensure that companies comply with the provision of the law Pension Commission had mandated all the firms seeking to bid for Federal Government contracts, to provide evidence of implementation of the Contributory Pension Scheme (CPS) to make sure employers obey the pension law in the country.
Akalezi said that it is a good move by the commission to insist on the requirements for the issuance of the certificate, as it is a way of making sure that the companies pay and remit their employees pensions.
“This is a good policy because it is a way of insuring that people are paying their pension and the deducted amount is remitted. Its also a way of ensuring that firms pay and remit their staff pension,” he said
He lamented that even though government officials have a way of side tracking policies but he is hopeful that the incoming government will help block all loopholes.
PenCom had since 2011,been uploading the list of companies issued certificates of compliance with the provision contained in Section 16 (6) (d) of the Public Procurement Act 2007, which states that any supplier, contractor or consultant bidding or soliciting contract or business from any Federal Government MDAs must fulfil all its obligations with respect to pensions.
Information obtained from Pen- Com site revealed that compliance certificates have been issued to 1455 companies as at 11th May 2015 in accordance to the Pension Reformed Act 2014(PRA 2014), while 2178 were issued in 2014, but prior to this, in 2013, 1163 were issued with the certificate in accordance to the old pension Act with 559 and 852 in 2012 and 2011, respectively.
To qualify for the compliance certificate, companies wishing to bid for federal government contracts are required to submit to PenCom, evidence of remittance of monthly pension contribution to include certified list of employees; certified statement of rate of employer/employee pension contribution; schedule of monthly pension contributions for the last three years indicating: names of employees, Retirement Savings Account (RSA) Personal Identification Numbers (PINs), Pension Fund Administrators (PFA) name, amount of monthly employer/employee contribution, as well as schedule of evidence of remittance of monthly pension contributions to RSA for the last three years indicating; date of payment, name of PFA, name and location of receiving bank, payment instrument reference number and amount paid.
Besides, they are also to provide evidence of transfer of all pension assets of any employee retirement benefit scheme prior to the commencement of the Pension Act 2004 to licensed operators.
Additionally, there are required to show evidence of valid group life insurance policy for employees which should include amongst others;policy certificate, policy documents, schedule of employee covered by the policy indicating; name of employee, total annual emolument, sum assured and premium paid.