The National Pension Commission and the National Insurance Commission are partnering to create awareness on annuity and group life insurance policy among retirees.
During an awareness workshop in Lagos, the Acting Director-General, PenCom, Mrs. Chinelo Anohu-Amazu, said this was part of an existing collaboration between the two commissions, which commenced in 2006 with the joint release of the regulation on GLIP for employees.
She said, “They also collaborated in 2009 to jointly release the regulation on annuity. Both regulations have been implemented for six years and three years respectively during which some challenges have arisen, hence the need to enlighten and sensitise operators and relevant stakeholders on their roles towards the successful implementation of the regulation.”
According to her, the commission will continue to support and promote collaborative approach to pertinent issues meant to address any regulatory challenges militating against the successful implementation of the regulation.
Although the annuity and GLIP are traditionally associated with insurance business, she said that the PRA 2004 made provision for them, thereby eliciting their relevance to retirement matters.
The acting director-general said, “Section 4.1(b) stipulated that a holder of a retirement savings account upon retirement shall utilise the balance standing to the credit of his RSA for annuity for life, purchased from a life insurance company licensed by the National Insurance Commission with monthly or quarterly payments.”
She added, “Section 9(3) stipulates that employers shall maintain life insurance in favour of the employee for a minimum of three times the annual total emolument of the employee.”
While it is the mandate of NAICOM to regulate the annuity and life insurance market, she said that it was the responsibility of PenCom to ensure that the modalities for the administration of retirement benefits through the life annuity as well as terminal benefits involving group life insurance policy were strictly followed to guarantee payments as and when due.