PenCom Tasks Employees On Insurance Rights, Funds' Remittal - FOREFRONT NG CPS, Employees, Employers, Funds, Life Insurance Policy, PenCom, PFAs, PFCs, PRA 2014, Remittances

BY COBHAM NSA, ABUJA – In its resolve to constantly strengthen the Contributory Pension Scheme (CPS) for effective mandate delivery, the National Pension Commission (PenCom) has tasked public service and private sector employees across the Federation on their rights to Life Insurance Policy (LIP) under the Scheme.

Also, the Commission has challenged workers in both sectors to ensure prompt remittal of all pension contributions to the Pension Fund Custodians (PFCs) within seven (7) working days from the date of their salaries’ payment.

The existing pension law, which is largely overlooked by most employers, stipulates that they take on behalf of their employees a LIP for an “insured amount of not less than three (3) times their annual total emolument.”

Accordingly, PenCom has therefore urged vigilance on the part of workers in order that their rights under the CPS are not infringed upon by employers of labour.

This information is contained in a statement by the Commission titled: “NOTICE TO ALL EMPLOYEES ON THEIR RIGHTS TO LIFE INSURANCE POLICY AND PENSION CONTRIBUTIONS.”

The statement reads in part that; “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.”

To aid the process of PenCom’s intervention in case of any infringement on the workers’ rights, the statement further said; “Employees are therefore advised 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 organisation;

• Remit the deducted pension contributions into their Retirement Savings Accounts.

In recent times, the nation’s pension industry regulator has not relented in driving processes meant to address evident challenges in implementing the the CPS for effective service delivery to retirees nationwide.