L- Mr Barineka Thomas, Director Inspectorate, Mr Leo Akah, Director, Corporate Governance & Compliance, Mr Pius Agbola, Assistant Director Compliance at the concluded 2021 National Insurance Commission, Naicom, seminar for insurance Journalists in Lagos
By Favour Nnabugwu
According to the Regulators, these guidelines and regulations were introduced to provide clarity on the provisions of the Pension Reform Act 2014 (the PRA), especially those relating to group life insurance policies for employees and retiree life annuities; as well as ensure safety of retiree life annuity funds and assets..
The Commissioner explained that life annuity was a stream of periodic payments that commences at a specified date, which is either the normal retirement age or at 50 in the case of early retirement.
This payment, he said, could either be monthly or quaterly depending on the retiree’s preference.
The benefits, according to him, include the continuous flow of regular income for the retiree, insulation from the risk associated with the investment of lump sum benefits, structured management of resources and the transference of the risk of diminution in assets and possible failure of investments of retirees to insurance companies which are better equipped to manage such risks.