The National Pension Commission (PenCom) has issued year 2021 Compliance Certificates to a total of 15,417 organizations as at 10 May 2021. The compliance certificate is part of the requirements to do business with Federal Government Ministries, Departments and Agencies (MDAs). This was disclosed in a report recently released by PenCom.
The prerequisite PenCom used for issuance of compliance certificates to companies are majorly remittance of pension contributions and group life insurance. The Pension Reform Act 2014 mandates that every employer with 3 or more employees must deduct pension contributions of not less than 8% of an employee’s total emoluments, add 10% of the employee’s total emoluments as employer’s contribution, and remit both to the Pension Fund Custodian of the employee’s Pension Fund Administrator (PFA). The employer is also required to have a Group Life Insurance Policy for its employees for a minimum of three times the annual total emolument of the employee and premium shall be paid not later than the date of commencement of the cover.
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