Reps probe non-implementation of group life insurance for Nigerian workers
The House of Representatives has mandated its Ad-hoc Committee investigating all pension related matters to probe the allegations bothering on delay in the implementation of compulsory group life insurance policy, in breach of the provisions of Pension Reform Act, 2014.
The resolution was passed sequel to the adoption of a motion sponsored by Akinwunmi Olaitan, who frowned at the flagrant disregard to the provisions of the Pension Reforms Act, 2014 by private and public institutions.
In his lead debate, Olaiton stated that the Pension Reform Act, 2014 which repealed the 2004 Act makes it compulsory for a worker and an Organization in a State of the Federation to engage in contributory form of pension.
He however expressed regret that firms in both the Public and Private Sectors of 32 States out of the 36 and FCT have refused to comply with the provisions of the Act of Parliament.
This he blamed as one of the chief reasons why Nigerians retire to penury and die on pension queues nationwide.
“The House notes that only four states in the country have complied with the compulsory group life insurance policy, as stipulated in the Pension Reform Act, 2014.
“The House is worried that the essence of the Pension Reform Act which is to ensure that every person who worked in either the public service of the Federation, Federal Capital Territory or private sector services gets his retirement benefits as at when due, amongst other objectives is being defeated.
“The House is concerned that group life insurance policy as stipulated by Pension Reform Act was created to protect families from financial hardship in the events of death or retirement of their bread winners.
“The risks of not having group life insurance policy are often great and unimaginable, noting that Fourteen years after the Contributory Pension Scheme (CPS) instituted by the Pension Reform Act, 2014 which mandated employers to maintain group life insurance for employees, only Lagos, Niger, Osun and Rivers States have complied;
“The House is also aware that in addition to the rates specified in Section 4(5) of the Pension Reform Act, 2014, Sub Section (1) stipulates that “Every employer shall maintain a group life insurance policy in favour of each employee for a minimum of three times the annual total emolument of the employee and premium shall be paid not later than the date of commencement of the cover’.
“The House is also aware that Subsection (6) of the same Section states that, “Where the employer failed, refused or omitted 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’. The House is further aware that many workers died while in active service and no insurance compensation is paid to their beneficiaries,” Olajide stressed.