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By Ngozi Onyeakusi— The National Pension Commission (PenCom) has rejected seven out of 18 RSA for Mortgage applications due to failure to provide Pension Compliance certificates (PCC) by their Mortgage Banks.

SUPERNEWS recalled that PenCom recently granted approval for applications from Retirement Savings Account (RSA) holders seeking to use part of the RSA account for equity contribution towards the purchase of residential mortgage .

SUPERNEWS equally learnt that PenCom received 18 request for approval to use the RSA balance for equity contribution towards the purchase of residential mortgage but approved only 11 applications and rejected seven .

PenCom was said to have rejected the seven applications because the Mortgage lender ( mortgage banks or Commercial banks) did not have Pension Compliance certificates (PCC).

PenCom’s action, according to our source
was in line with the “Guidelines on Accessing RSA balance towards payment of equity Contribution for Residential Mortgage by RSA holders” , because Section 4.2 4 of the Guidelines mandate that the Mortgage Lenders must have a valid Pension Clearance Certificate issued by PenCom in accordance with the Pension Reform Act 2014.

RSA holders processing using part of their residential mortgage are advised to request that mortgage banks or commercial banks to confirm that they have Pension Compliance certificates from PenCom.

Pension Clearance Certificate is issued by PenCom and it confirms that the organisation has complied with the provisions of the Pension Reform Act 2014 specifically as regards to remittance of pension contributions and group life insurance policy of
employees.

PCC expires every 31st December, and therefore must be renewed on a yearly basis
the major requirement for pension compliance certificate is remittance of pension contributions and group life insurance policy of
employees.