PenCom sets deadline for submission of insurance certificates of labour employees
The National Pension Commission (PenCom) has through a statement 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.
The statement signed by Mr Peter Aghahowa, Head of Corporate Communication of the commission stated 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.
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.
“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.’’ he said.
He 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.
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 by the employer.
“This should not be later than seven working days from the date of payment of their salaries,’’ he said.
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.
He added that employers are expected to remit the deducted pension contributions into the employees’ Retirement Savings Accounts.