In a public notice released today by the National Pension Commission (PenCom) titled “Re: Compliance with PRA 2014 on Group Life Insurance Policy for employees and Display of Insurance Certificate for 2021”, all employers of labour under the Contributory Pension Scheme (CPS) have been directed to display a copy of the entity’s Group Life Insurance Policy (GLIP) certificate within the premises of the entity where it is easily accessible in accordance with the provisions of the Pension Reform Act (PRA) 2014 and Guidelines on Group Life Insurance Policy.
PenCom has given a deadline of 31 July 2021 for all employers to comply otherwise they will be seen as violating the provisions of the PRA 2014.
Read the full content of the Notice below:
RE: COMPLIANCE WITH PRA 2014 ON GROUP LIFE INSURANCE POLICY FOR EMPLOYEES AND DISPLAY OF INSURANCE CERTIFICATE FOR 2021
In accordance with the provisions of Section 4(5) of the Pension Reform Act (PRA) 2014, every employer shall maintain a Group Life Insurance Policy (GLIP) in favour of all employees. The GLIP should be a minimum of three times the annual total emolument of the employees.
Similarly, Section 5.5 of the Revised Guidelines GLIP for Employees provides that the employer shall display a copy of the GLIP certificate in a conspicuous place within its premises, for the information of the employees and as evidence of having taken such policy.
Employers that have not displayed a copy of the GLIP certificate within their premises are advised to do so on or before 31 July, 2021. Failure to provide GLIP is a violation of Section 4(5) of the Pension Reform Act (PRA) 2014.