Life insurance: Pencom gives deadline for employers

The National Pension Commission (PenCom) has given deadline of March 31, 2020 to  employers yet to submit copies of life insurance certificates for their employees for current year  to do so.

The commission gsve the deadline in a statement issued Thursday citing  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.

Pencom said the Act required employers to submit copies of the insurance certificates with the schedule of benefits to the National Pension Commission (PenCom).

According to the statement, “National Pension Commission would consider failing employers as defaulters of Section 4(5) of the Pension Reform Act (PRA) 2014”.

“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).”

According to the statement, the commission stressed that compliance with PRA 2014 was not complete without the Group Life Insurance Policy.

The commission noted  that all employees in public service hat have implemented the Contributory Pension Scheme as well as private sector, were eligible 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.

“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,” the commission stated.

The commission also advised  that employees report to the commission where the employer fails to procure the minimum required life insurance policy in their favour,

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