Procurement law compels 18,607 employers to remit 341,786 employees’ pension
The Federal Government’s law that allows only companies with Pension Clearance Certificates (PCCs) to bid for its contracts is paying off as 18,607 certificates were issued to employers in 2019.
This means 18,607 employers were compelled by the law, the Public Procurement Act of 2007 to remit pension deductions into the Retirement Savings Accounts (RSAs) of 341,786 employees.
Going by this, a total of sum of N93.8 billion was remitted into the RSAs of 341,786 employees.
The Director-General, National Pension Commission (PenCom), Mrs Aisha Dahir-Umar, said in compliance with Section 2 of the Pension Reform Act 2014, the commission continued to process and issue Pension Compliance Certificates to private sector organisations that met the requirements.
She stated that the commission collaborated with the Bureau of Public Procurement (BPP) to enforce the Public Procurement Act of 2007.
She said: “The certificate is mandatory for companies bidding for Federal Government contracts as provided in the Public Procurement Act of 2007 and being enforced by the Bureau of Public Procurement (BPP) in furtherance of its collaboration with the Commission.
“In 2019, the Commission received 19,298 applications for Pension Clearance Certificates (PCCs) out of which, 18,607 certificates were issued while 691 applications were rejected due to failure to meet the stipulated requirements.
“The records confirmed that the sum of N93,791,371,822.64 was remitted into the RSAs of 341,786 employees by the 18,579 applicants that were issued the PCCs. The list of requirements as well as the companies issued with the certificates during the year are hosted on the Commission’s website”.
Meanwhile, the total monthly pension contributions received from contributors from both the public and private sectors was N6.19 trillion as at the end of the s econd quarter, 2020, said PenCom.
“A review of the aggregate total contribution received shows that N3.13 trillion or 50.58% of the contributions came from the public sector, while the private sector contributed the remaining 49.42 per cent, representing N3.06 trillion.
Source: The Nation