The National Pension Commission (PenCom) has advised employers yet to submit copies of life Insurance Certificates for the current year to do so before 31 March, 2020.
The commission in a statement on Thursday stressed that in accordance with the provisions of Section 4(5) of the Pension Reform Act (PRA) 2014 and Section 5.5 of the Guidelines for Life Insurance Policy for Employees, employers of labour covered by the PRA 2014 are required to submit copies of the Insurance Certificates with the schedule of benefits to the National Pension Commission (PenCom).
“National Pension Commission would consider failing employers as defaulters of Section 4(5) of the Pension Reform Act (PRA) 2014”.
“The Insurance Certificates shall state that all employees are covered up to an amount not less than 3 times their respective Annual Total Emoluments (ATE)”.
According to the statement, the commission stressed that compliance with PRA 2014 is not complete without the Group Life Insurance Policy.
“The Guidelines for Life Insurance Policy for Employees can easily be accessed and downloaded at www.pencom.gov.ng/
The statement shows that all employees in the Public Service of the Federation, Federal Capital Territory and States that have implemented the Contributory Pension Scheme as well as private sector, are eligible under Section 4(5) of the PRA 2014 to have Life Insurance Policy taken on their behalf by their employers for an insured amount of not less than three (3) times their annual total emolument.
“Employees are also required to ensure that all pension contributions deducted from salaries and/or contributed by employers are remitted to the Pension Fund Custodian (PFC) by the Employer not later than seven (7) working days from the date of payment of their salaries”.
The commission has advised that employees report to the Commission where the employer fails to procure the minimum required Life Insurance Policy in their favour,
Submit the evidence of compliance with Life Insurance Policy to the Commission and place the certificate in a conspicuous place within the organization or remit the deducted pension contributions into their Retirement Savings Accounts.
Cynthia Egboboh, Abuja.
