1. By National Pension Commission At the one-day Seminar organised by the Office of Head of Service of the Federation for Permanent Secretaries and Director General of Government Agencies 23-Jul-091

2.  Statutory Requirement  Features of life insurance policy  Implementation efforts  Role of Supervisory Authorities or Agencies  Role and Responsibilities of MDAs  Conclusion 23-Jul-092

3.  Section 9 (3) of Pension Reform Act 2004 makes Life Insurance policy compulsory for every employee  To be purchased by the employer on behalf of and for the benefit of employee 23-Jul-093

4.  To cover a minimum of three (3) times the Annual Total Emolument (ATE) of employees ◦ ATE is defined as basic and all allowances i.e. gross emolument  To cover death in service and support beneficiaries of the deceased employee ◦ “Death” includes missing persons as provided in Section 6 of PRA 2004 23-Jul-094

5.  Efforts are in progress for policy to cover employee disability while in service  To be renewed after every twelve (12) calendar months  To be provided by an eligible licensed Insurance company 23-Jul-095

6.  PenCom and National Insurance Commission (NAICOM) jointly issued the Guidelines for Life Insurance Policy for Employees in June 2006  Guidelines stipulate modalities for implementation of the scheme  Policy is deemed to have commenced on 1 July, 2004 with the commencement of the Act 23-Jul-096

7.  Effective take-off in the public sector was delayed due to ◦ Consolidation in the insurance industry ◦ Need for implementation framework/structure  Actual take – off was January 2008 23-Jul-097

8.  PenCom processed 1,650 death cases with life insurance proceeds worth N2,554,347,190.70 ◦ 232 cases with RSAs already credited with N396,609,134.37 life insurance proceeds ◦ 513 cases with RSAs (N990.79million) yet to be paid ◦ 905 deceased cases without RSAs (N1,166.95million) awaiting the opening of Death Benefit Accounts (DBAs) by beneficiaries to facilitate payment  690 cases were not processed due to incomplete documentation, thus forwarded to OHOSF  PenCom ceased to process such cases effective 1 January 2009 while OHOSF took over the processing/coordination 23-Jul-098

9.  Separate Life Insurance policy arrangement required for ◦ Core Civil Service under the OHOSF ◦ Political appointees under the Secretary to the Government of the Federation ◦ The Armed Forces, Police, Paramilitary under their respective Supervising Agencies ◦ Treasury Funded Agencies ◦ S elf Funded Agencies  Funding of the scheme in the public sector had been grossly inadequate as Police and Armed Forces are yet to be funded 23-Jul-099

10.  Agencies are required to send certificate of compliance annually to PenCom  Private Sector compliance has been on the increase/deepening  Evidence of compliance being submitted to PenCom 23-Jul-0910

11. Appointment of Insurance Company  Confirm eligibility of insurance companies from NAICOM & PenCom  Appoint insurance companies and/or brokers or consortium of insurance companies/brokers  Appoint lead underwriter/broker as main liaison parties/for ease of coordination where necessary 23-Jul-0911

12.  Compile employee details from MDAs (names, Grade Level/Steps, Annual Total Emolument, PFAs, PIN Nos e.t.c)  Present employee details & insurable benefits (cover) to underwriter(s)  Invite underwriters to quote for premium and agree premium amounts with underwriters 23-Jul-0912

13.  Make budgetary provisions for annual premium and arrears of claims before take- off of scheme  Facilitate payment of premium to underwriters  Obtain Insurance certificate from underwriter(s)  Forward copies of Life Insurance certificate to employees’ PFAs and PenCom 23-Jul-0913

14. Facilitate Payment of life insurance proceeds  Notify underwriters of death of any employee/missing staff  Provide deceased employees’ PIN, PFA & other details to Insurance companies for remittance of insurance proceeds  Request underwriters to pay the proceeds into RSAs  It is an offence to pay directly to Next of Kin/beneficiaries 23-Jul-0914

15.  To liaise with units of the MDA to collate employee related information for brokers/insurance companies  To liaise with brokers/insurance companies on policy renewal, claims processing and other matters  To liaise with BOF for payments of premium  To liaise with PenCom/PFAs of employees on cases of death/missing persons e. t.c  To advise NOK/beneficiaries of deceased/missing employees on documentations/processes 23-Jul-0915

16.  Pension Desk Officer (PDO) to liaise with Next of Kin of deceased /missing employees and obtain applicable documents for PFAs and/ Supervisory Authority or Agency ◦ Medical Certificate of Death/Cause of Death; ◦ Certificate of Registration of Death (if available); ◦ Police Report (if death is by accident); ◦ Letter of Administration or Will admitted to Probate; 23-Jul-0916

17. ◦ Declaration of Wish/Evidence of Nomination of NOK by deceased staff ◦ Police report (that a person has been missing over 12 months) ◦ Employer’s confirmation of employee’s disappearance (for missing person) ◦ To identify NOKs of deceased/missing employees ◦ PFAs & PIN Nos e.t.c  PDO to report and submit the documents to the Supervisory Authority or Agency 23-Jul-0917

18.  FGN is the largest single employer of labour  The success of the life insurance policy is critical to the continued success of the Pension Reform  Need for compliance to ensure a successful implementation in the Public Sector  PenCom is always available to provide the necessary assistance 23-Jul-0918

19. National Pension Commission Plot 174, Adetokunbo Ademola Crescent, Wuse II, Abuja 09 – 4138736 – 40 info@pencom.gov.ng www.pencom.gov.ng 23-Jul-0919