Workers’ Insurance: PenCom Threatens Erring Employers
BY COBHAM NSA, ABUJA – The National Pension Commission (PenCom) has threatened to blacklist employers under the Contributory Pension Scheme (CPS) that fail to submit copies of their employees’ insurance certificates for the current year on or before 31 March, 2020.
According to the Commission, erring employers that flout submitting all relevant documents to it by the stated deadline risk obvious sanctions as prescribed for those “in default of Section 4(5) of the Pension Reform Act (PRA) 2014.”
The warning is contained in a notice dated Thursday, January 23, 2020 to all employers of labour titled: “RE: COMPLIANCE WITH GUIDELINES FOR LIFE INSURANCE POLICY FOR EMPLOYEES AND SUBMISSION OF INSURANCE CERTIFICATE FOR 2020”
It said; “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.”
To ensure compliance before the March 31 deadline expires, the Commission advised that affected employers can easily access and download the Life Insurance Policy for Employees’ guidelines from the “following website address: www.pencom.gov.ng/guidelines/guidelines for Life Insurance Policy”.
“Please, note also that Compliance with PRA 2014 is not complete without the Group Life Insurance Policy”, the PenCom statement added.
