The contributory scheme.
WHAT IT IS
A scheme requiring employer and employee contributions to a retirement savings account.
WHO ADMINISTERS OVERSIGHT
The national pension commission.
WHO HOLDS THE FUNDS
Licensed pension fund administrators, chosen by the employee.
WHO APPLIES
Employers above a defined size threshold, with the public sector covered separately.
WHAT TO ESTABLISH
Whether your business meets the threshold.
WHAT THE EMPLOYER MUST DO
Register as an employer Ensure employees have retirement savings accounts Deduct the employee portion Add the employer portion Remit both within the prescribed period
WHY TIMELINESS MATTERS
Late remittance attracts penalties, and it is the employee's money.
WHAT AN EMPLOYEE MUST DO
Open a retirement savings account with an administrator of their choice Provide the account number to the employer
WHAT COMMONLY GOES WRONG
Employees without accounts, delaying remittance Contributions remitted without proper schedules, so they are not credited Employers deducting and not remitting
WHY THE SECOND ONE MATTERS
The money is paid but does not reach the employee's account.
WHAT TO PROVIDE WITH REMITTANCE
A schedule identifying each employee and amount.
WHAT EMPLOYEES SHOULD DO
Check their statements.
WHAT ELSE THE SCHEME COVERS
Compliance certificates, which are required for various purposes.
WHAT TO KEEP
Evidence of every remittance.
