Update on the Micro Pension Plan Q2 2022

October 8, 2022 PensionNigeria

The National Pension Commission (PenCom) 2nd quarter 2022 report for the pension industry provides an update on Micro Pension Plan Registration, Contribution, Withdrawal, Conversion and Engagement with Stakeholders.

Below are the updates;

Micro Pension Registration

In the 2nd quarter of 2022, seventeen (17) out of eighteen (18) Pension Fund Administrators (PFAs) registered 3,831 new contributors under the Micro Pension Plan (MPP), PFAs in Nigeria have now registered a total of 80,419 informal sector workers under the Micro Pension Plan (MPP) as at 30 June 2022.

Micro Pension Contribution

Micro pension contributors contributed a total of ₦22,193,664.59 during the 2nd quarter of 2022 and they have now contributed a total sum of ₦280,780,481.42 into their Micro Pension Retirement Savings Accounts (RSAs) from inception of the Micro Pension Plan in March 2019 to 30 June 2022.

Contingent Withdrawals

In compliance with the provisions of the guidelines on Micro Pension Plan, which allows contributors to withdraw the contingent portion of their Micro Pension contributions, PenCom granted approvals to six (6) PFAs to pay the sum of N1,685,677.45 to eleven (11) Micro Pension contributors as contingent withdrawals, during the 2nd quarter of 2022. The total contingent withdrawals made by Micro Pension contributors from inception of the Micro Pension Plan in March 2019 to 30 June 2022 is now N22,363,726.87 from 118 Micro Pension contributors.

Conversion from MPP to CPS

The report further disclosed that there were conversions from MPP to Contributory Pension Scheme (CPS) during the 2nd quarter of 2022, which happens when Micro Pension contributors secure employment in the formal sector of the economy. During the 2nd quarter of 2022, Thirty-Three (33) Micro Pension contributors converted to the Mandatory CPS and the sum of N615,119.11 was transferred to their respective RSAs. This brings the total conversion balance to N4,541,217.81 from 361 Micro Pension Contributors as at 30 June 2022.

Engagement with Micro Pension Stakeholders

Micro Pension Sensitization Outreach for Abuja Municipal Area Council (AMAC-FCT)

PenCom Micro Pensions Department participated at the Micro Pension Sensitization outreach for the Abuja Municipal Area Council (AMAC)-FCT organized by the Conference of Civil Society of Nigeria (CCSON). This took place on 1 April 2022 at the Nigerian Union of Journalists (NUJ) FCT Chapter Secretariat in Utako. The sensitization outreach was aimed at educating leaders of Trade Groups, Artisans, Civil Societies and the members of the Informal Sector under AMAC on the operational modalities of Micro Pension Plan (MPP) and its benefits.

Seminar on the Extension of Social Security to the Informal Sector

PenCom was invited by the Federal Ministry of Labour and Employment to attend a two-day seminar on “the Extension of Social Security to the informal Sector” held from 27 to 28 June 2022. The seminar was organized in collaboration with the International Labour Organization (ILO) at the United Nations House Abuja.

Accordingly, Micro Pensions Department made a presentation on “Social Protection Scheme to the Informal Economy/Strategies and Progress Made”. The presentation focused on the features of the Micro Pension Plan (MPP), which includes the voluntary nature of the Plan, flexibility of contributions, ease of entry and the benefits of the Plan to the Informal Sector. In addition, the strategies PenCom has adopted in driving MPP participation was presented.

PenCom has also taking steps to educate the general public on the Micro Pension Plan, it has ensured the distribution of the translated Frequently Asked Questions (FAQs) on the MPP in Yoruba, Igbo, Hause and Pidgin to various stakeholders across the 6 geo-political zones to sensitize the public about the Micro Pension Plan. PenCom has also taken further steps to educate the general public on the MPP by releasing a video, The Micro Pension Plan A Stage Play to educate people on MPP.

Micro Pension Plan (MPP) is a pension plan under the Contributory Pension Scheme (CPS) that allows people who are not mandatorily covered by the Pension Reform Act 2014, make financial contributions towards the provision of pension at their retirement or incapacitation.

Micro Pension was introduced in March 2019 and it is voluntary for Persons working in the informal sector, market women, carpenter, plumbers, mechanic, ride hailing drivers, bloggers, influencers etc, can all open a Micro Pension Account with any Pension Fund Administrator (PFA) of their choice except Nigerian University Pension Management Company (NUPEMCO) and Nigeria Police Force Pensions Limited.

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