By LOVETH AZODO, Lagos
The National Pension Commission has requested that all employers of labour submit copies of employees’ Life Insurance Policy Certificates with the schedule of benefits to the National Pension Commission (PenCom) before March 31, 2020.
A statement by the commission’s Head, Corporate Communications Department shows that the demand was 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.
Furthermore, it stated “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.”
“Please note also that Compliance with PRA 2014 is not complete without the Group Life Insurance Policy.”
In a bid to enlighten employees on their rights, the commission also reminded employees under the Contributory Pension Scheme of their right 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 as it is under Section 4(5) of the PRA 2014.
“This is to remind 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, that it is their rights; 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.”
“Please note 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 (7) working days from the date of payment of their salaries,” it stated.
The Commission permits an Employee to report his/her employer to the Commission when he/she 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 and Remit the deducted pension contributions into their Retirement Savings Accounts.