PENCOM Sets Group Life Insurance Deadline For All Employers
The National Pension Commission (PENCOM) in its recently issued circular has mandated employers to comply with the provisions of section 4(5) of the Pension Reform Act (PRA) 2014 by maintaining a Group Life Insurance Policy (GLIP) in favour of all its employees.
In accordance with the law, the GLIP to be maintained should be a minimum of three (3) times the annual emolument of the employees.
PENCOM has also emphasized the provision of section 5.5 of the Revised Guidelines on GLIP for Employees, which provides that employers shall display a copy of the GLIP certificate in a conspicuous place within its premises before 31 July, 2021.
The PRA merely provides that where an employer fails, or refuses to make payment as and when due, the employer shall make arrangement to effect the payment of claims arising from the death of any staff in its employment during such period. PENCOM has however indicated through its Guidelines that it will impose administrative sanctions for failure to comply. Please see link on procedure for setting up the Group Life Insurance in the Guidelines.