PenCom Gives Employers Ultimatum To Comply With Life Insurance For Employees
The National Pension Commission (PenCom) has given employers of labour across the country up till March 31st, 2020, to comply with the guidelines for life insurance policy for their employees and the submission of insurance certificates.
PenCom in a notice to all employers across all sectors said the directive was 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 and employers of labour covered by the PRA 2014.
Stressing that compliance with PRA 2014 was not complete without the group life insurance policy, PenCom said the certificates must show 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 would make the National Pension Commission considers such employers in default of Section 4(5) of the PRA 2014.”
The regulator further urged public and private workers to report any employer that doesn’t remit deducted pension contributions into their Retirement Savings Accounts (RSAs) after seven (7) working days from the date of payment of their salaries.