Chuks Udo Okonta
The National Pension Commission (PenCom) and National Insurance Commission (NAICOM) have resolved to tackle the challenges affecting implementation of annuity so that operators and stakeholders can maximise great benefits.
Acting Director-General PenCom Mrs Chinelo Anohu-Amazu, at a workshop on annuity and group life insurance in Lagos, said PenCom and NAICOM would through the review of the implementaion of the guidelines on life insurance policy and the regulation on annuities, expose insurance and pension operators to a better understanding of the rudiments of annuity and group life insurance policy, as well as their responsibilities.
She noted that one of the challenges clogging annuity business, is inadequate sensitisation and public enlightenment on the roles operators and stakeholders were expected to play towards the successful implimentation of the guidelines.
She said: "The Pension Reform Act (PRA) 2004, allows a retiree to utilise the balance standing to the credit of his Retire Saving Account (RSA) for programmed withdrawal through the pension fund administrator, or annuity for life purchased from a life insurance company.
"While it is the mandate of NAICOM to regulate the annuity and life insurance markets, it is the responsibility of PenCom to ensure that the modalities for the administration of retirement benefits through life annuity as well as terminal benfits involving group life insurance policy are strictly followed to guarantee payments as at when due"
She noted that the colloboration between PenCom and NAICOM would help address challenges like misinformation, reporting requirements and other operational issues encountered in implementing the guidelines/regulation.
Assistant Director Inspectorate NAICOM, Sam Onyeka, said NAICOM is determined to ensure that insurance firms providing annuity live up to their responsibilities. He noted that NAICOM would continue to support the operators so that they could provide improve services to retirees who buy annuity.
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