Dead Workers’ Families Get N506m Lifeline

The families of 189 federal civil servants who died in active service are to receive over N506 million as insurance benefits.

Head of the Civil Service of the Federation (HOS), Alhaji Isa Sali, made the announcement during the presentation of cheques to Pension Fund Administrators for the settlement of the next of kin of the dead workers.

Sali explained that the event was in fulfilment of the provisions of section 9 (3) of the Pension Reform Act 2004.

The Act states that every employer with not less than five employees must insure the lives of the employees to a minimum of three times their total annual emolument.

“In the event of death of any such employees the next of kin is paid 300 per cent of the deceased officer’s annual emolument.

“The scheme was initially flagged off in 2008 and a premium of four billion naira was earmarked to be managed by a consortium of 24 insurance companies for that year, ‘’ he said..

Sali added that a total of 365 death claims, amounting to N904.5m was settled as at December, 2009.

While decrying the delay in the process of settling beneficiaries, he urged PENCOM and the Pension Fund Administrators to look into how best to fast track the payment of benefits.

“These benefits are meant to alleviate the suffering of the families of our colleagues that have lost their lives while serving our dear nation,’’ he said.

Our correspondent reports that the PFAs who received cheques include AIICO Pensions Ltd, Amana Capital Pension, ARM Pension Managers Ltd and Crusader Sterling Pension.

Others are APT Pension, First Guarantee Pensions Ltd, Sigma Vaughn Sterling, Legacy Pension Managers Ltd, NLPC Pension Funds administrators Ltd, Pension Alliance Ltd and Premium Pensions Ltd.

Trust Fund Pensions Ltd, Leadway Pension PFA and Stanbic IBTC Pension Managers Ltd also received cheques.