PenCom gives insurance compliance, submission deadline

PenCom

In compliance to the Pension Reform Act (PRA) 2014, the National Pension Commission (PenCom), has given employers of labour up till March 31st, to comply with the guidelines for life insurance policy for employees, and the submission of insurance certificates.

PenCom said the decision was taken in pursuance of provisions of Section 4(5) of PRA 2014, and Section 5.5 of the guidelines for life insurance policy for employees, which mandates employers covered by the Act, to submit copies of the insurance certificates with the schedule of benefits to the Commission.

In a statement at the weekend, PenCom reiterated that the insurance policy must cover all employees up to an amount not less than three times their respective Annual Total Emoluments (ATE), which must be stated in the certificates.

It advised employers who have not yet submitted copies of their insurance certificates for the current year to the Commission, to do so before March 31, failing which PenCom would consider such employers in default of Section 4(5) of the PRA 2014. 
 
The Commission said guidelines for the life insurance policy for employees could easily be accessed and downloaded on: www.pencom.gov.ng/guidelines/guidelines for Life Insurance Policy, noting that compliance with PRA 2014 is not complete without the Group Life Insurance Policy (GLIP).

The Commission further reminded all employees in the public service of the federation, Federal Capital Territory (FCT), and states as well as those in the private sector that have implemented the Contributory Pension Scheme (CPS), that it is their right under Section 4(5) of the PRA 2014, to have life insurance policy taken on their behalf by their employers. 
 
PenCom urged all employees to ensure that pension contributions deducted from their salaries or contributed by their employers are remitted to the Pension Fund Custodian (PFC) not later than seven working days from the date of the payment of their salaries. 
 
It advised employees to report to the Commission if their employers fail to procure the minimum required life insurance policy in their favour, submit the evidence of compliance to the Commission, place the certificate in a conspicuous place within the organisation or remit the deducted pension contributions into their Retirement Savings Accounts (RSA) as and when due.