How to remit your employees’ pension under the new pension scheme

The new pension scheme requires that employees in the public and private sectors of the federation choose a pension fund administrator (PFA) that will manage or administer their pension contributions and open retirement savings account (RSA) with the chosen PFA. The employees will be issued a retirement savings account number which is referred to as the pension PIN number.
After receiving the PIN, the employees are then required to forward such PIN to their employers, preferably the salaries and wages or pension unit in their respective organizations. With the PIN, the employers will deduct 8% from the employees’ salaries and add another 10% to make it a total of 18%. The total 18% is then arranged in a schedule called pension remittance schedule.
The remittance schedule is structured in such a way that it carries the following information:
1. Name and address of the employer
2. Period the remittance covers
3. Pencom registration number of the employer
4. Bank account details of the PFA custodian bank
5. Names and PIN numbers of the employees, whose pension is being remitted
6. Column showing 8% of the employees’ contributions
7. Column showing 10% of the employer’s contributions
8. Total amount by each employee
9. Total amount of all the employees who registered with the PFA
After the schedule has been prepared, the employer issues a cheque in favour of the PFA and make the remittance.