Update on the Micro Pension Plan Q42021

April 16, 2022 PensionNigeria

The National Pension Commission (PenCom) has released an update on the Micro Pension Plan which covers Registration, Contribution, Withdrawal, Conversion and Engagement.

Micro Pension Registration and Contribution

Pension Fund Administrators (PFAs) in Nigeria have now registered a total of 73,600 informal sector workers under the Micro Pension Plan (MPP) and the Micro pension contributors have contributed a total sum of N224,054,870.69 into their Retirement Savings Accounts (RSAs) from inception of the Micro Pension Plan in March 2019 to 31 December 2021.

The report also disclosed that during the 4th quarter of 2021 alone, Nineteen (19) PFAs registered 2,166 new contributors under the Micro Pension Plan (MPP) and the sum of N25,094,874.26 was credited into the RSAs of 8,260 MPP Contributors.

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 ten (10) Pension Fund Administrators (PFAs) to pay the sum of N7,531,505.51 to twenty (22) Micro Pension contributors as contingent withdrawals, during the 4th quarter of 2021. The total contingent withdrawals made by Micro Pension contributors from inception of the Micro Pension Plan in March 2019 to 31 December 2021 is now N18,869,157.41.

Conversion from MPP to CPS

The report further disclosed that there were conversions from MPP to Contributory Pension Scheme (CPS) during the 4th quarter of 2021, which happens when Micro Pension contributors secure employment in the formal sector of the economy. Thirty-nine (39) Micro Pension contributors converted to the Mandatory CPS and the sum of N596,339.27 was transferred to their respective RSAs. This brings the total conversion balance to N3,680,292.77 from 259 Micro Pension Contributors as at 31 December 2021.

Engagement with Micro Pension Stakeholders

The Commission participated at the 2021 Lagos International Trade Fair organised by the Lagos Chamber of Commerce and Industry (LCCI) in collaboration with the Lagos State Government. The Fair provided the opportunity to sensitise members of the public on the workings of the Micro Pension Plan as well as respond to other inquiries on the CPS. Conducted workshop on the MPP for Alaba International Amalgamated Traders Association and Association of Progressive Traders of Nigeria. Participated at the 8th Kwara State Trade Fair and took advantage of the event to engage with self-employed individuals and small business owners on the Micro Pensions Plan.

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 to 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 e.g, market women, carpenter, plumbers, mechanic, ride hailing drivers etc, who 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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