The Federal Government has enacted a Pension Reform Act 2004 which has taken off.

   

OBJECTIVES OF THE ACT:

• To ensure that every worker receives his/her retirement benefit as at when due.

• To assist individuals to save for their retirement

• To establish a uniform set of rules, regulations and standards for administration and payment of retirement benefits for workers.

         

The Act applies to all private organizations that employ at least five (5) workers as well as all workers in the Federal Government establishments.

The minimum age of entry is 18 years and maximum is 60 years although it may be extended to age 65 on completion of prescribed medical examination at Assurers’ cost.

 

COMPULSORY GROUP LIFE ASSURANCE SCHEME

The employer is compelled to put in place Group Life Assurance of minimum of three (3) times i.e. 300% of the annual total emolument of the employee. Cover provided is for death in service benefits in respect of the each employee.

 

However, if you require higher benefits for your employee, we can provide quotation for various multiple of emolument; 400%, 500% etc.

 

Emolument is defined as the total of Basic Salary, Housing and Transport Allowances.

The policy is renewable annually with payment of annual premium while contract to insure life of employee terminates in respect of employee on his withdrawal from service or death in which case there is always an adjustment of premium to accommodate new entrance as well.

 

COVER PROVIDED

The death benefit is paid to the dependents of the employees on his death whilst in service.

 

NOTE OF CAUTION

THE NEW LAW EMPOWERS THE FAMILY OF AN EMPLOYEE TO SUE THE EMPLOYER OF A DECEASED RELATIVE FOR FAILURE TO OBTAIN THE MINIMUM OF MULTIPLE OF 3 TIMES ANNUAL EMOLUMENT.

In order to obtain immediate cover for the Scheme, we require information in the format below for all your employees.

• Name (Surname first)

• SEX

• AGE

• TOTAL EMOLUMENTS (Basic salary + housing + transport allowance)

 

Additional Benefits:

We shall negotiate with reputable underwriters to obtain the following additional benefits on your behalf considering the large volume of Insurances.

 

• Long Term Agreement Discount usually, 7.5% of Gross Premium.

• Prompt Premium Payment Discount usually up to 10%.

Inclusion Underwriting Profit Sharing or Discount.  This will depend on the result at the end of the underwriting year.