The National Pension Commission has directed all employers of labour covered by the Pension Reform Act 2014 to submit copies of their Insurance Certificates with the schedule of benefits to the commission before March 31, 2020.
In a statement signed by Peter Aghahowa, Head of Corporate Communication, the commission said the directive was in accordance with the provisions of Section 4(5) of the PRA 2014 and Section 5.5 of the Guidelines for Life Insurance Policy for Employees.
He said: “The Insurance Certificates shall state that all employees are covered up to an amount not less than three 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 March 31, 2020.
“Failing, PenCom would consider such employers in default of Section 4(5) of the Pension Reform Act (PRA) 2014.”
According to Aghahowa, the guidelines for Life Insurance Policy for employees could easily be accessed and downloaded from the following website address: www.pencom.gov.ng/guidelines/guidelines for Life Insurance policy.
“Note also that compliance with PRA 2014 is not complete without the Group Life Insurance Policy,” he said.
The spokesperson for the Commission also reminded all employees in the Federal Government Service, Federal Capital Territory and States that have implemented the Contributory Pension Scheme as well as private sector of their rights to have a Life Insurance policy.
Aghahowa noted that it was the rights of employees to have a Life Insurance Policy taken on their behalf by their employers for an insured amount of not less than three times their annual total emolument.
He said: “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.
“This should not be later than seven working days from the date of payment of their salaries.”
Aghahowa, however, advised employees to report to the commission where their employers failed to procure the minimum required Life Insurance Policy in their favour.
He said employers were expected to submit the evidence of compliance with Life Insurance Policy to the commission and place the certificate in a conspicuous place within the organisation.
According to him, employers should also remit the deducted pension contributions into the employees’ Retirement Savings Accounts.