PenCom certifies 317 firms for FG contracts

By Sola Alabadan

Senior Correspondent

The National Pension Commission (PenCom) has certified 317 private sector organisations to bid for contracts with Federal Government Ministries, Departments and Agencies (MDAs) as at March 6, 2013, Daily Independent can authoritatively report.

This is by virtue of the certificate of compliance issued to these organisations by PenCom after having provided evidence of complying with provisions of the Pension Reform Act (2004).

Issuance of compliance certificate by PenCom is in line with the provision of 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 fulfill all its obligations with respect to pensions.

Compliance with the Pension Act, at minimum, include ensuring that all employees open Retirement Savings Accounts (RSAs) with Pension Fund Administrators 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; and transferring all pension funds and assets prior to the commencement of the Pension Act to licensed pension operators.

The Compliance Certificate replaces the erstwhile Letters of Compliance that were issued to organisations bidding or soliciting for contracts with Federal Government MDAs.

PenCom had earlier brought it to the attention of all organisations and the general public that by virtue of the provision of Section 16 (6) (d) of the Public Procurement Act, 2007 (PPA 2007), 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.

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

The names of the affected companies are pasted on the commission’s website, with PenCom noting that the list has to be publicised to serve as a guide to all Federal Government MDAs and for information of the general public.

The Pension Act establishes a contributory pension scheme for all employees in the public service of the Federation, Federal Capital Territory and the private sector where there are a minimum of five employees.