May 18, 2021

19 Insurance firms fail PenCom compliance for CPS

19 Insurance firms fail PenCom compliance for CPS

By Cynthia Alo

The National Pension Commission, PenCom, has awarded compliance certificates to 39 insurance companies out of 58 operating in the sector. The fate of the remaining 19 is still undetermined.

The certificates serve as proof that the companies have fully complied with the Contributory Pension Scheme, CPS, and therefore afford the companies the right to bid for federal government contracts and businesses.

According to the “Schedule of employers issued with compliance certificate” released by PenCom,  the 39 insurance companies remitted a total of N2.47 billion in their Retirement Savings Accounts, RSA, in 2020.

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Analysis of the schedule show that AIICO Insurance topped the list of insurers as it remitted N193.9 million for its 296 employees in 2020, followed by Lasaco with N159.5 million for 160 employees and then Leadway remitted N158.2million for 335 employees.

FBN Insurance Limited came fourth with N128.4 million remittance for 171 employees, followed by old mutual with N127.9 million. Also, Cornerstone remitted N108.4 million while Old Mutual General remitted N108.3 million.

Zenith remitted N97.9 million while Mutual Benefits Assurance remitted N91.6 million while Axa Mansard remitted N90.7 million.

Further analysis show that a total of 15,418 employers from different sectors of the economy had faithfully remitted their employees’ pension contributions into their Retirement Savings Accounts (RSA) in 2020.

Some insurance brokers were also cleared and issued certificates. Plum Insurance Brokers Limited, was cleared having remitted N1.07 million for seven of its employees. Risk Analyst Insurance Brokers Limited, remitted N4.39 million for 29 employees and YOA Insurance Brokers Limited remitted N21.81 million for 52 employees.

PenCom noted that as at the end of third quarter 2020, a total of 5,700 organisations applied for issuance of Pension Clearance Certificates (PCCs). Out of this number, 5,432 were issued certificates while the remaining 268 applications were declined for not meeting the stipulated requirements.