The National Pension Commission (PenCom), has issued a directive to all Licensed Pension Fund Operators (LPFOs), comprising Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs), prohibiting them from transacting any business with service providers and vendors that do not remit pensions for their employees as evidenced by a Pension Clearance Certificate issued by PenCom.
Section 2 of the PRA 2014 mandates all employers in the public and private sectors, including Federal, State, and Local Governments to participate in the Contributory Pension Scheme (CPS) and remit pension contributions not later than seven working days after salary payments.
Despite continuous engagement and enforcement measures, a significant number of employers remain non-compliant with this legal obligation.
PenCom intensified its regulatory actions by appointing recovery agents (RAs) to audit defaulters, recover outstanding contributions, and enforce sanctions.
According to the commission, all LPFOs shall ensure that any vendor or service provider they engage presents a valid Pension Clearance Certificate (PCC) issued by the Commission as a condition for entering into or renewing service level or technical agreements.
