PenCom rejects RSA for Mortgage application because of PCC
The National Pension Commission (PenCom) recently granted approval for applications from Retirement Savings Account (RSA) holders seeking to use part of their RSA for equity contributions towards the purchase of residential mortgage.
It was disclosed that PenCom received 18 requests for approval to use part of the RSA balance for equity contributions towards the purchase of residential mortgage but PenCom only approved 11 applications and rejected the remaining 7 applications.
PenCom was said to have rejected the 7 applications because the Mortgage lender (Mortgage banks or commercial banks) did not have Pension Compliance Certificate (PCC).
PensionNigeria notes that PenCom’s action is in compliance with the “Guidelines on Accessing Retirement Savings Account (RSA) Balance Towards Payment of Equity Contribution for Residential Mortgage By RSA Holders”, because Section 4.2.4 of the Guidelines mandates that the Mortgage Lender must have a valid Pension Clearance Certificate issued by PenCom in line with the Pension Reform Act 2014.
RSA holders processing using part of their RSA balance for residential mortgage are advised to request the Mortgage bank or commercial bank to confirm that they have Pension Clearance Certificate from PenCom.
Pension Clearance Certificate (PCC) is issued by National Pension Commission (PenCom) and it confirms that the organization has complied with the provisions of PRA 2014 specifically as regards remittance of pension contributions and group life insurance policy for employees.
Pension Compliance Certificate expires every 31 December, therefore it must be renewed on yearly basis, the major requirement for pension compliance certificate is remittance of pension contribution and group life insurance policy for employees.
Also Read
List of Organisations Issued Compliance Certificates
How to apply for 2023 Pension Clearance Certificate
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