The National Pension Commission (PenCom) has directed employers 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, this year.
The Head of Corporate Communications of the Commission, Mr. Peter Aghahowa, made this known in a statement yesterday in Abuja.
Aghahowa explained that 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.
According to him, “The insurance certificates shall state that all employees are covered up to an amount not less than three times their Annual Total Emoluments.
“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.
“Note also that compliance with PRA 2014 is not complete without the Group Life Insurance Policy.”
The commission’s spokesman also reminded employees in the Federal Government Service, Federal Capital Territory and states that have implemented the Contributory Pension Scheme (CPS) as well as in the private sector, that a life Insurance policy is their right.
“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 by the employer.
“This should not be later than seven working days from the date of payment of their salaries,” he said.
He, 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 certificates in a conspicuous place within the organisation.
Also, employers are expected to remit the deducted pension contributions into the employees’ Retirement Savings Accounts.