Insurance

Life insurance: PenCom tasks employees to report defaulting employers

Mrs. Aisha Dahir-Umar

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Chuks Udo Okonta

The National Pension Commission (PenCom) has urged employees to report employers who failed to provide them with life insurance policy for appropriate sanctions.

PenCom stated this in a circular signed by its Acting Director-General, Mrs. Aisha Dahir-Umar, entitled, ‘Notice to all Employees on Their Rights to Life Insurance Policy and Pension Contributions’. It noted that it is the rights of employees under Section 4(5) of the Pension Reform Act (PRA) 2014 to have life policy taken on their behalf by their employers for an insured amount of not less than three times their annual total emoluments.

The pension industry regulator posited that employees are also required to ensure that all pension contributions deductions from salaries and/or contributed by employers are remitted to the Pension Fund Custodian (PFC) by the employer not later than seven working days from the date of payment of their salaries.

Employees were asked to report to PenCom where employers failed to procure the minimum required life 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 organisation.

They were also urged to report when their employers failed to remit the deducted pension contributions into their Retirement Savings Account (RSA).

Thomas

Speaking on the development, the Deputy Commissioner for Insurance, Technical, Sunday Thomas, lauded PenCom for the effort to ensure compliance, stressing that the PRA 2014 empowers PenCom to ensure employers provide life cover for their employees.

He noted that the National Insurance Commission (NAICOM) has continued to maintained good working relationship with PenCom to ensure growth and development of businesses in both sectors.

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