How PenCom Micro Plan Works
The National Pension Commission has released guidelines on how the new Micro Pension Plan (MPP) works.
The MPP is a Contributory Pension Scheme (CPS) that allows self-employed Nigerians tap into the retirement benefits offered by PenCom.
The commission disclosed this in a tweet on Tuesday, stating that prospective Micro Pension contributors will be required to open a Retirement Savings Account (RSA) by completing a physical or electronic registration form with a Pension Funds Administrator (PFA) of his/her choice.
The tweet further stated that withdrawal of the MPP contribution will be in two portions. While subscribers can take as much as 40% of their contribution as contingent withdrawal, the remaining 60% will be retained and managed for pension.
The Acting Director-General of PenCom, Mrs. Aisha Dahir-Umar had promised to deliver efficient and effective services to subscribers of the new Micro Pension Plan (MPP).
She added that the launch of MPP and subsequent successful implementation will help generate additional long-term funds for Nigeria’s economic development.
“The Micro Pension Plan is expected to significantly expand pension coverage to greater number of Nigerians and further, generate additional long-term funds for Nigeria’s economic development.
“The Commission would collaborate with relevant stakeholders to sensitize and enlighten the target participants and members of the public on the features and benefits of the Micro Pension Plan.”