PenCom to sanction employers without life insurance for workers

By Isa Amodu

The National Pension Commission (PenCom) has said that it would sanction employers without life insurance for workers.

PenCom added that, in it’s bid to provide conducive working environment for Nigerian workers under the Contributory Pension Scheme (CPS), the commission has directed workers to report to the Commission any employer that refuse to procure the minimum required Life Insurance Policy in their favour not less than three (3) times their annual total emolument.

PenCom disclosed this in a notice titled :”Re Compliance with guidelines for life insurance policy for employees and submission of insurance certificate for 2020″ advised 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.

According to PenCom, 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.

PenCom further advised employees to report to the Commission whenever the employer fails to “submit the evidence of compliance with Life Insurance Policy to the Commission and place the certificate in a conspicuous place within the organization.”