Update on the Micro Pension Plan for Year 2021 – PensionNigeria

Update on the Micro Pension Plan for Year 2021

The National Pension Commission (PenCom) in its 2021 Annual Report released an update on the Micro Pension Plan (MPP) which covers Registration, Contribution, Withdrawal and Conversion, for the year 2021.

Micro Pension Registration

Pension Fund Administrators (PFAs) registered a total of 11,228 MPP participants. This brought the cumulative number of MPP participants registered between March 2019 (inception of MPP) and 31 December 2021, to 73,691.

Pension Contributions Received from the MPP Participants

During the year 2021, a total of N134,925,936.31 was credited into the Retirement Savings Account (RSAs) of MPP participants. This brought the cumulative amount contributed by MPP participants to N224,054,870.69 as at 31 December 2021.

Contingent Withdrawals

In compliance with the provisions of the guidelines on Micro Pension Plan, which allows participants to withdraw the contingent portion of their Micro Pension contributions, PenCom granted approvals to nineteen (19) PFAs to process MPP Contingent Withdrawals for Sixty-Eight (68) Micro Pension participants amounting to N17,776,596.04 in the year 2021. This brought the cumulative contingent withdrawal made by MPP participants to N20,033,680.73 as at 31 December 2021.

Conversion to Mandatory CPS

The report further disclosed that there were conversions from MPP to Contributory Pension Scheme (CPS) during the year 2021, which happens when Micro Pension contributors secure employment in the formal sector of the economy. A total of 209 MPP participants converted to the Mandatory CPS in the year 2021 and their pension contributions valued at N2,441,521.01was moved into their RSAs. This brought the total number of MPP Contributors that have converted to the Mandatory CPS to 259 with a cumulative amount of N3,680,292.77 as at 31 December 2021.

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.

Stay Turned, PensionNigeria will be breaking down all aspects of the PenCom 2021 Annual Report.

PenCom 2021 Annual Report Breakdown

Chairman’s Statement in PenCom 2021 Annual Report
Director General’s Report in PenCom 2021 Annual Report
Analysis of Pension Operating Environment for the Year 2021
Micro Pension Registrations per PFA as at Dec 2021 and Fastest Growing PFAs by Micro Pension Registrations
Update on the Micro Pension Plan for Year 2021
N93.49 Billion Pension Contributions not in Contributors Retirement Savings Account
Defaulting Employers pay Penalties of N10.03 billion into Employees RSA as PenCom takes 67 Employers to Court
Redacted Reports – Unfunded RSAs and RSAs with Incomplete Documentation
PTAD paid N99.94 billion to Federal Government Retirees in 2021
PenCom Stakeholder Engagement and Public Enlightenment Activities in 2021
Biggest PFAs by RSA Pension Fund Assets under Management & Fastest Growing PFAs in 2021
More post will be added once available

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