Update on the Micro Pension Plan Q1 2022

June 24, 2022June 24, 2022 PensionNigeria

The National Pension Commission (PenCom) has released its 1st quarter 2022 report for the pension industry, the report provides an update on Micro Pension Plan Registration, Contribution, Withdrawal, Conversion and Engagement with Stakeholders.

Micro Pension Registration and Contribution

Pension Fund Administrators (PFAs) in Nigeria have now registered a total of 76,588 informal sector workers under the Micro Pension Plan (MPP) and the Micro pension contributors have contributed a total sum of N263.57 Million into their Micro Pension Retirement Savings Accounts (RSAs) from inception of the Micro Pension Plan in March 2019 to 31 March 2022.

The report also disclosed that during the 1st quarter of 2022, eighteen (18) PFAs registered 2,897 new contributors under the Micro Pension Plan (MPP) and a total sum of N34.53 Million was credited into the RSAs of 8,668 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 five (5) PFAs to pay the sum of N644,368.94 to eight (8) Micro Pension contributors as contingent withdrawals, during the 1st quarter of 2022. The total contingent withdrawals made by Micro Pension contributors from inception of the Micro Pension Plan in March 2019 to 31 March 2022 is now N20,678,049.42.

Conversion from MPP to CPS

The report further disclosed that there were conversions from MPP to Contributory Pension Scheme (CPS) during the 1st quarter of 2022, which happens when Micro Pension contributors secure employment in the formal sector of the economy. Sixty-nine (69) Micro Pension contributors converted to the Mandatory CPS and the sum of N245,805.93 was transferred to their respective RSAs. This brings the total conversion balance to N3,926,098.70 from 328 Micro Pension Contributors as at 31 March 2022.

Engagement with Micro Pension Stakeholders

PenCom facilitated and made presentation titled, ‘’Micro Pension Plan as a Core Driver of Rapid Economic Growth, National Development as well as Security’’ at the CSO-Media Conference organized by the Conference of Civil Society of Nigeria (CCSON) on the 25 of February, 2022 at its Corporate Office in Garki, Abuja. The aim of the Conference was to educate the Civil Society Organization on the workings of the Micro Pension Plan and the Contributory Pension Scheme.

PenCom visited the Finance Committee of the Catholic Secretariat of Nigeria to further discuss ways to engender buy-in of the Micro Pension Plan by the Christian Catholic Faith.

PenCom held a meeting with the Enhancing Financial Innovation and Access (EFInA) on 4 March 2022, to discuss the Commission’s level of compliance with the Gender Data Ecosystem of the Nigeria Financial System.

PenCom participated at the 33rd Enugu International Trade Fair held between 25 March and 4 April, 2022 at the Enugu International Trade Fair Complex, Golf Estate, G.R.A Enugu.

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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