Acting Director-General, PenCom Mrs. Aisha Dahir-Umar
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Chuks Udo Okonta
The National Pension Commission ( PenCom) has directed employees to report any employer that fails to procure the minimum required Life Insurance Policy in their favour not less than three times their annual total emolument and those failing to remit the deducted pension contributions into their Retirement Savings Accounts (RSAs).
PenCom disclosed this today in a notice entitled: ‘Re Compliance withguidelines for life insurance policy for employees and submissionof insurance certificate for 2020’ stating that it is the right of 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, 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.
The commission added that 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 working days from the date of payment of their salaries.
PenCom further advised employees to bring to its notice, where the employer fails to: “submit the evidence of compliance with Life Insurance Policy and place the certificate in a conspicuous place within the organisation.
PenCom noted 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).
“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).
“Employers that have not yet submitted copies of Insurance Certificates for the current year to the Commission, are therefore advised to do so before 31 March, 2020 failing which the National Pension Commission would consider such employers in default of Section 4(5) of the Pension Reform Act (PRA) 2014,” it said.
The Guidelines for Life Insurance Policy for Employees can easily be accessed and downloaded from the following website address:
www.pencom.gov.ng/guidelines/guidelines for Life Insurance Policy.
Please note also that Compliance with PRA 2014 is not complete without the Group Life Insurance Policy, it noted.