Micro Pension Scheme Participants To Access 40% Contributions Before Retirement
The National Pension Commission (PenCom) operating under the Pension Reform Act 2014 has said that the contributors under its Micro Pension Scheme (MPS) have access to 40 percent of the total contributions after three months of commencement.
The commission communicated this through a stage play posted on its Twitter page on Tuesday.
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MPS is an initiative of PenCom designed to help traders, artisans, professionals and other self employed people who do not qualify for the Contributory pension scheme (CPS), save conveniently for retirement.
Contributions under this scheme are split into two portions, 40% for Contingent Withdrawals and 60% for Retirement Benefits.
The contingent portion takes into consideration the fact that entrepreneurs may have an emergency that calls for funds, thus allowing for weekly withdrawals, usually after 3 (three) months from the initial contribution.
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On the other hand, the 60% retirement portion can only be accessed upon retirement, usually when a contributor clocks at least 50 years.
