Pension

Only FCT, three states have valid group life – PenCom

Leave a comment and share

Chuks Udo Okonta

The National Pension Commission (PenCom) has said only the Federal Capital Territory (FCT) and three states have valid group life.

PenCom in a recent publication named the states as; Lagos, Kaduna and Edo, even as it implored defaulting states to acquire adequate life insurance cover for their workers.

To ensure workers are cared for through life insurance, 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.

PenCom in a notice entitled: ‘Re Compliance withguidelines for life insurance policy for employees and submissionof insurance certificate for 2020’ stated 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.

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 Director, Centre for Pension Rights Advocacy (CPRA), Ivor Takor, urged the unions in public and private sectors to rise up to the plight of workers by compelling employers to insure their lives.According to him, while the labour unions are fighting for salary increment, the pension and insurance packages of workers should also be part of their demands.

“It is now obvious to everybody that the state governors, among others, cannot do anything for the welfare of the workers unless they are compelled to do it. So, if the public sector unions don’t get up and ensure they implement these things, those states will not do anything,” he said.

Also commenting on the development, the past President, Nigerian Council of Registered Insurance Brokers (NCRIB), Shola Tinubu, urged employers to take up the responsibility of insuring their workers, as this may also motivate employees to be dedicated to work.

Available data showed that about 2.5 million civil servants in the country are missing out of the benefits of Group Life Insurance cover, following the inability of 33 states to sign on to the policy, against the mandate of Pension Reforms Act (PRA) 2014.

Group life cover is a joint regulation of the National Insurance Commission (NAICOM) and PenCom, on Section 9 (3) of PRA 2014, requiring every employer, to which the Act applies, to maintain Life Insurance Policy in favour of the employee for a minimum of three times the annual total emolument of the employee. The policy provides cover to the insured against death.

Leave a Comment

Your email address will not be published. Required fields are marked *

*