PenCom Issues Guidelines On Micro Pension Plan Registration

The National Pension Commission (PenCom) has released a new guideline for the registration of Retirement Saving Account (RSA) under the Micro Pension Plan (MPP) and Cross border contributors by Pension Fund Administrators (PFAs). 

According to the new guideline, PFAs can only register a contributor under the MPP, after the administrator has obtained evidence of membership in a registered association or trade union or Certificate of Business Registration.

It further stated other requirements to be a means of identification – National Identity Card, International Passport, Driver’s License or Permanent Voters Card.

To ensure authenticity, the pension regulators urged PFAs to sight the original copies of all documents submitted.

For contributors in Diaspora, PenCom listed National Identity card, National Driver’s License, Permanent Voters Card (PVC), or the data page of the International Passport, as documents to be obtained by PFAs.

 “PFAs shall accept notarized copies of the documents or copies attested by Nigerian Embassies abroad to ensure that the copies are authentic.

“PFAs shall ensure that an authorized personnel of the PFA stamps, signs and dates the photocopies of all original documents sighted as required.

“PFAs shall obtain one (1) recent passport-sized photograph of the applicant/RSA holder, taken against a white background, with the name of the employee written at the back. The passport photograph shall meet the required specifications,” PenCom stated.

For finger-impaired individuals who cannot sign the RSA Registration Forms, PFAs were urged to provide additional documents such as letter of indemnity from the PFA, duly signed by two authorized signatories, confirming that the individual is finger impaired. Photograph of the individual showing the missing finger(s) or hand(s), where the individual is an amputee and other additional documents as may be required by the Commission from time to time to support the finger-impaired registration status.

The Acting Director-General, PenCom, Mrs. Aisha Dahir-Umar  had clarified that a prospective Micro Pension contributor 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, adding that they have the leverage of making contributions as it may be convenient to them.

“Every contribution shall be split into two, comprising 40 per cent for contingent withdrawal and 60 per cent for retirement benefits. 

“The contributor may based on his/her needs, periodically withdraw the total or part of the balance of the contingent portion of his/her RSA, including all accrued investment income thereto,” she said.