Update on the Micro Pension Plan Q3 2022

January 13, 2023 PensionNigeria

The National Pension Commission (PenCom) 3rd quarter 2022 report for the pension industry provides the latest update on Micro Pension Plan Registration, Contribution, Withdrawal, Conversion and Engagement with Stakeholders.

Below are the updates;

Micro Pension Registration

In the 3rd quarter of 2022, eighteen (18) Pension Fund Administrators (PFAs) registered 4,193 new contributors under the Micro Pension Plan (MPP), PFAs in Nigeria have now registered a total of 84,612 informal sector workers under the Micro Pension Plan (MPP) as at 30 September 2022.

Check here for Micro Pension Registration per PFA

Micro Pension Contribution

Micro pension contributors contributed a total of ₦45,135,440.45 during the 3rd quarter of 2022 and they have now contributed a total sum of ₦325,915,922.12 into their Micro Pension Retirement Savings Accounts (RSAs) from inception of the Micro Pension Plan in March 2019 to 30 September 2022.

Check here for Micro Pension Contribution per PFA

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 four (4) PFAs (see table below) to pay the sum of ₦901,714.26 to eight (8) Micro Pension contributors as contingent withdrawals, during the 3rd quarter of 2022. The total contingent withdrawals made by Micro Pension contributors from inception of the Micro Pension Plan in March 2019 to 30 September 2022 is now ₦23,210,441.12 from 125 Micro Pension contributors.

3rd quarter Micro Pension Contingent Withdrawals per PFA

S/N	PFA	No. of RSAs	Amount (N)
1	ARM Pension Managers (PFA) Limited	2	26,944.87
2	Stanbic IBTC Pension Managers Limited	4	733,000.00
3	Veritas Glanvills Pensions Limited	1	26,400.00
4	Crusader Sterling Pensions Limited	1	115,369.39
	Total	8	901,714.26

Conversion from MPP to CPS

The report further disclosed that there were conversions from MPP to Contributory Pension Scheme (CPS) during the 3rd quarter of 2022, which happens when Micro Pension contributors secure employment in the formal sector of the economy. During the 3rd quarter of 2022, Sixty-One (61) Micro Pension contributors converted to the Mandatory CPS and the sum of ₦202,339.67 was transferred to their respective RSAs. This brings the total conversion balance to ₦4,940,023.92 from 471 Micro Pension Contributors as at 30 September 2022.

3rd quarter Micro Pension Conversion from MPP to CPS per PFA

S/N	PFA	No. of RSAs	Amount (N)
1	ARM Pension Managers (PFA) Limited	27	1,010.06
2	First Guarantee Pensions Limited	2	–
3	Norrenberger Pensions	2	–
4	Pension Alliance Limited	5	–
5	Stanbic IBTC Pension Managers Limited	2	3,559.18
6	Trustfund Pension Managers Limited	21	196,190.55
7	Veritas Glanvills Pensions Limited	2	1,579.88
	Total	61	202,339.67

Engagement with Micro Pension Stakeholders

Constitution of Joint PenCom/PenOp Committee on Implementation of MPP

The Joint PenCom/PenOp Committee on the implementation of Micro Pension Plan (MPP) was constituted to come up with pragmatic steps to successfully drive the implementation of the MPP. Part of the initiatives developed by the Committee in driving the MPP include, but not limited to, the creation of awareness, the development of incentives such as health insurance and the adoption of shared services platforms towards improving service delivery.

Awareness Campaigns

The First phase of the media campaign in Aba, Abuja, Lagos, Kano, Kaduna, Onitsha and Port-Harcourt, which commenced in April 2022 ended in August 2022. The media campaign in the above cities were via Radio, Out-door and Digital Media. Radio Jingles developed in English, Pidgin, Hausa, Yoruba and Igbo were aired on three popular Radio Stations in the aforementioned cities. In addition, outdoor messaging using Billboards and Lamp Posts were placed at strategic locations in the selected cities while in the digital media space, the use of infomercials, Graphics Interchange Format (GIF) and skits were deployed using TikTok, Instagram, Facebook and Twitter. Consequently, a survey was conducted to access the impact of the first phase of the media campaign before rolling out the second phase. The survey result is expected to serve as input to guide implementation of the 2nd phase media campaign for greater impact. The second phase of the campaign is expected to commence in the 3rd week of October, 2022.

Development of Incentives

Provision of incentives has been recognized as a critical factor for informal sector workers’ participation in the MPP. Three Service Providers; AXA Mansard Health Insurance, Leadway Assurance Company and Tangerine Life Insurance were engaged by PenOp to provide health insurance cover to MP Contributors. To this end, PenCom has developed a draft Circular on the Provision of minimum Health Insurance for Micro Pension Plan Participants which is currently undergoing processing.

Other Engagement with Key Stakeholders

PenCom participated at the annual Journalist Conference held in Lagos and Abuja on the 18 and 25 August 2022, respectively and made a presentation on the Implementation of MPP.
PenCom also participated and sponsored the 3rd quarter Pension Seminar held in Abuja for the Conference of Civil Society of Nigeria. The Conference was aimed at driving greater participation in the CPS and boosting the MPP.
PenCom was at the one-day induction program organized by the North East Development Commission for its new staff at the Public Service institute, Abuja on the 1st of September, 2022, and presented an overview of the CPS.

PenCom has also taken 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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