FG Insures 89,000 Civil Servants With N15bn
**”Pensioners Give FAAN 7-Days To Reverse 50% Pension Cut
The Federal Government has paid about N15 billion premium under the Group Life Insurance scheme to insure over 89,000 workers across the country in the current year 2020.
Even though it was difficult for federal government in the past to renew Group life insurance of its workers, owing to late passage of budget, however the insurance industry had to engage the government agencies and convince them on the need to insure these workers.
With the premium now fully paid, the family of deceased civil servants will be entitled to death benefit claims that will sustain the deceased workers’ families.
In Nigeria, group life cover is a joint regulation of the National Insurance Commission (NAICOM) and the National Pension Commission (PenCom). Section 9 (3) of the Pension Reform Act 2004 (now PRA 2014) requires every employer, to which the Act applies, to maintain Life Insurance Policy in favour of the employee for a minimum of three times the annual total emolument of the employee.
The policy provides cover to the insured against death. The president, Nigerian Council of Registered Insurance Brokers (NCRIB), Dr Bola Onigbogi confirmed this development during the 2020 annual general meeting of the National Association of Insurance and Pension Correspondents (NAIPCO) in Lagos, at the weekend.
Meanwhile the Nigerian Union of Pensioners (NUP) of the Federal Airports Authority of Nigeria (FAAN) branch has called for immediate reversal of its members’ pension slashed last month in which 50 per cent of the pension was deducted.
Secretary of NUP FAAN branch, Comrade Emeke Njoku who spoke to journalists over the weekend in Lagos called on the Management of FAAN to reverse it within seven days. According to Njoku, “We want that money reversed within seven days, we have mobilised our members, it is not done, it is on heard and how much is pension. We shall take action inimical to the organization after seven days without reversal.”
He said FAAN management went too far in slashing their pension which amounted to what he called ‘wickedness’. Njoku said it was not a matter of salary but pension stressing that pensioners have been living from hand to mouth with their little monthly pension which has never sustained them.
The NUP scribe disclosed that pension was in the exclusive list of constitution and cannot be touched by anybody including the Commander of Chief unless he sought for approval from the Court of law before touching pension.
