FG Approves N9.24bn Group Life Assurance For Civil Service
The Federal Executive Council (FEC) has approved N9.24 billion as premium for insurance firms that will manage the group life assurance for federal civil servants
Revealing the figure after the FEC meeting held on Wednesday in Abuja, the Minister of Information and Culture, Lai Mohammed, said the life assurance is for federal government employees, public servants, para-military, as well, as the intelligence community for the year 2021-2022.
The group life insurance is a joint regulation of the National Insurance Commission (NAICOM) and National Pension Commission (PenCom).
Section 9 (3) of the Pension Reform Act 2004 (now PRA 2014) requires that 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.
Mohammed said: “On behalf of the Head of Civil Service of the Federation, I will like to report that council today (Wednesday) approved the award of contract for the appointment of insurance companies for group life assurance for federal government employees, public servants, para-military and the intelligence community for the year 2021-2022 in the sum of N9, 248. 995, 907 and this premium is for a period of 12 months.
“This is part of the government’s welfare programme for our public employees so that in case of death, they are assured that there would be compensation,” Mohammed said.
In a joint press conference held by the National Insurance Commission (NAICOM) and the National Pension Commission (PENCOM), the two agencies had released regulatory guidelines induced by the enactment of the Pension Reform Act of 2004 which made it mandatory for any employment in the Federal Public Service, Federal Capital Territory and the private sector to establish a contributory pension scheme from which payments of retirement benefits will be made to retiring employees.
As provided for by the Act, the modalities for payment of retirement benefits are through life annuity, which is obtainable from Life Insurance companies or through Programme Withdrawal, which is obtainable from Pension Fund Administrators. Either of the two methods is available depending on the choice of the employee.
In August 2020, the federal government had paid about N15 billion premium under the group life insurance scheme to insure over 89,000 workers across the country.
Similarly, the sum of N18.1 billion was approved by the Federal Executive Council (FEC) for the development of infrastructure at the nation’s free trade and economic zones in Calabar and Kano.
Revealing the figure, Lai Mohammed said the affected zones include the Kano and Calabar free trade zones, as well as the textile and garment park and the special economic zone located in Lagos.
According to Mohammed, the Federal Government’s approval was of critical importance to the economic and infrastructure development plan of the country.
Mohammed also added that N18.1 billion was approved for the Ministry of Industry, Trade and Investment; N864.7 million for two road contacts that were abandoned by previous administrations; and N1.1 billion for the procurement of aviation security uniforms and accessories for use in various airports across the country.
“The Minister of Aviation got an approval for the award of contract for direct procurement for the design, manufacture and supply of aviation security uniforms and accessories. The sum total is N1, 127, 945. The unique thing about uniforms for the aviation industry is that it has some International Civil Aviation Organisation (ICAO) standards that would be followed,” Mohammed said.
He added that, “The Minister of Niger Delta got approval for Okpula-Igwartanta Phase I linking Imo and Rivers state, started in 2010.
“He got an approval for a variation of N620, 763, 000. He also got approval for erosion flood control on Ndemili-Utagba-Onitsha road in Delta State, started in 2014. The council also approved N244 million to augment the original contract sum”.
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