News Column

Pencom Clears 1,386 Firms for FG Contracts

August 26, 2014

Sola Alabadan

A total of 1,386 employers have been certified to bid for Federal Government contracts as at August 22, 2014, after having provided evidence of compliance with provisions of the Pension Reform Act 2004.

This is a good development as only 1,163 employers were issued this compliance certificate by the National Pension Commission (PenCom) in 2013.

PenCom has since 2011 been publishing the list of companies issued certificates of compliance with the Pension Act in 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.

The total number of firms issued the compliance certificates were 852 in 2011, 559 in 2012 and 1,163 in 2013.

Although compliance certificates are issued only to organisations seeking to bid for Federal Government contracts, PenCom believes that if efforts are made to ensure compliance with this provision of the law, more employers would definitely be obeying the pension law in the country.

Compliance with the Pension Act, at minimum, include ensuring that all employees open Retirement Savings Accounts (RSAs) with the Pension Fund Administrator of their choice; remitting both employer and employee pension contributions to the appropriate Pension Fund Custodian not later than seven days from the date of payment of salaries.

Companies requesting for the compliance certificate are equally to provide evidence of transfer of all pension assets of any employee retirement benefit scheme prior to the commencement of the Pension Act to licensed operators, as well as evidence of valid group life insurance policy for employees.

In accordance with the requirement that all organisations wishing to bid for any contract with the Federal Government MDAs must provide evidence of implementing the Contributory Pension Scheme, PenCom has constantly been updating the list of organisations that have been issued compliance certificates.

The commission has also created a space on its website where the Federal Government Ministries, Departments and Agencies (MDAs) can easily search for the names of companies to determine their status on compliance with the Pension Act before such organisations can be considered for government contracts.

PenCom explained that the list has to be publicised to serve as a guide to all Federal Government MDAs and for information of the general public.

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Source: AllAfrica

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