The National Pension Commission (PenCom) has warned employers of labor that it would not fail to weld the big axe if they fail to submit copies of their employees life insurance certificate to the Commission before March 31, 2020.
According to PenCom in a circular to Pension Fund Administrators (PFAs) in Abuja, stated 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.
The pension regulator insisted that compliance with PRA 2014 is not complete without the Group Life Insurance Policy.
Meanwhile, the pension sector regulator has reminded employees that having a life insurance policy under their current employers is their right.
This is just as it reiterated the need for deducted pension contributions to be remitted into Retirement Savings Accounts (RSAs) of employees accounts.
A statement by PenCom reads in part: “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.
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The Commission urged employees to report to the Commission where the employer 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.”