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PenCom Moves to Enforce Pension Compliance in Vendor Contracts
The Business NG
|The BusinessNG
The National Pension Commission (PenCom) has issued a directive prohibiting Licensed Pension Fund Operators (LPFOs) from transacting with vendors and service providers that do not comply with the Pension Reform Act 2014.
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The move is part of PenCom's broader effort to deepen compliance and expand the reach of the Contributory Pension Scheme (CPS).
Under the new regulation, LPFOs—which include Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs)—must ensure that all vendors they engage present a valid Pension Clearance Certificate (PCC) issued by the Commission. This condition applies to both new engagements and renewals of service level or technical agreements.
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