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Ogun and Oyo states as well as Ekiti states are among the 31 states in the federation that have no insurance cover in place for workers as of March, despite the provision of the requirement in the Pension Reform Act 2014.
PLATFORM TIMES obtained some documents from PenCom on ‘Status of implementation of the CPS in states as at March 2021’ on Saturday revealed that only five states, such as Lagos, Osun, Ondo ,Edo and Federal Capital Territory, have insurance in place for their workers.
The five states,it was further observed have pension schemes for their workers, according to PenCom.
Also, PenCom, in a recent circular, ordered employers of labour to comply with the Group Life Insurance Policy as stipulated in the Pension Reform Act 2014.
PenCom also ordered employers to display a copy of the GLIP certificate in a conspicuous place within the premises before the end of July 31, 2021.
It stated this in a circular to all employers and employees titled ‘Re: Compliance with PRA 2014 on Group Life Insurance Policy for employees and display of insurance certificate for 2021’.
The commission said, “In accordance with the provisions of Section 4(5) of the Pension Reform Act 2014, every employer shall maintain a Group Life Insurance Policy 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 on 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.”
PenCom disclosed that only 15,418 organisations got its clearance to do the business of Ministries, Departments and Agencies of government between January 4 and May 10.
It said the clearance was given to them for having pension accounts and life insurance cover for their employees.
According to the commission, the clearance enables them to do the business of the Federal Government for the 2021 financial year.
PenCom said companies that had no insurance cover for their workers would no longer be allowed to do any government business.