By Victor Ahiuma-Young

Nigeria Labour Congress, NLC, has said it will compel employers of labour to maintain  group life assurance policies for their employees with a minimum benefit of three times total emolument in line with the provisions of the Pension Reform Act 2014.

This was part of the decision reached at the National Executive Council, NEC, of the NLC, held at Enugu, Enugu State.

*Abdulwaheed Omar, NLC President

In a communiqué released by NLC and Acting General Secretary, Abdulwaheed Omar, and Chris Uyot, respectively, “The NEC-in-session  resolved to get all employers of Labour to maintain a group life assurance policy for their employees with a minimum benefit of three times total emolument in line with the provisions of the Pension Reform Act 2014, Section 4 (5).

The NEC-in-Session noted with concern the delay by government in implementing the 33.3 per cent increase in pension payment approved by stakeholders and vowed to secure its implementation; National Pension Commission, PenCom, has on several occasions sounded a note of warning to employers on the need to have group insurance policy for their workers.

In a notice to all employers of labour, the commission said “This is to remind all Employees in the public and private sectors covered by the Pension Reform Act 2004 (PRA 2004) that it is their right under Section 9(3) of the PRA 2004 (now amended)  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.

Employees are also required to ensure that all pension contributions deducted from their salaries and/or contributed by their 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.

Employees are therefore advised to report to the Commission where the employer fails to take the minimum required Life Insurance Policy in their favour; submit the evidence of compliance with life insurance policy to the Commission and to the applicable Pension Fund Administrator (PFA) of the staff; and  remit the deducted pension contributions into their RSAs.”

Earlier, PenCom has issued a guideline on the policy to employers, saying “In accordance with the provisions of Section 9(3)of the Pension Reform Act (PRA) 2004 and Section 5.5of the Guidelines for Life Insurance Policy for Employees, Employers of labour covered by the PRA 2004 are required to submit copies of the Insurance Certificates with the schedule of benefits to the National Pension Commission (PenCom) and the Pension Fund Administrators (PFAs) where the employees maintain their Retirement Savings Accounts (RSAs).

The Insurance Certificates should 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 and Employees’ PFAs are therefore advised to do so before 31 March, 2011 failing which the National Pension Commission would consider such employers in default of Section 9(3)of the Pension Reform Act (PRA) 2004.”

It added that “the Guidelines for Life Insurance Policy for Employees can easily be assessed and downloaded from the following website address:www.pencom.gov.ng/guidelines/guidelines for Life Insurance Policy.”