Update on the Micro Pension Plan Q3 2020

December 19, 2020 PensionNigeria

Pension Fund Administrators (PFAs) in Nigeria have registered a total of 58,800 informal sector workers under the Micro Pension Plan (MPP) and the Micro pension contributors have contributed a total sum of N64,662,323.38 into their Retirement Savings Accounts (RSAs) from inception in March 2019 to 30 September 2020.

This was disclosed in PenCom report as at 30 September 2020. The report also disclosed that nineteen (19) PFAs registered 6,826 contributors under the Micro Pension Plan (MPP) and the Micro pension contributors contributed a total of N22,531,779.94 into their respective RSAs during the 3rd quarter of 2020.

PenCom granted approval to four (4) Pension Fund Administrators (PFAs) to pay the sum of N208,000 to four (4) MPP participants as contingent Withdrawals in line with the Guidelines on Micro Pension.

PenCom further disclosed that a total of fourteen (14) MPP participants converted from MPP to the mandatory CPS following their employment in the formal sector of the economy. This is expected to bring the total number of MPP participants who had converted to the mandatory Contributory Pension Scheme (CPS) to thirty two (32) as at 30th September 2020.

PenCom has been 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 organizations with less than three (3) employees and people working in the informal sector e.g, market women, carpenter, plumbers, mechanic, ride hailing drivers etc, can all open a Micro Pension Account with any Pension Fund Administrator (PFA) of their choice except NUPEMCO and Nigeria Police Force PFA.

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