1. What is the Micro Pension Plan?
The Micro Pension Plan is an arrangement for the provision of pension to the self-employed and persons operating in the informal sector through the Contributory Pension Scheme. The primary objective of Micro Pension Plan is to provide retirement benefits to the Micro Pension Contributor.
2. How do I know if I can participate in this plan?
The underlisted individuals with legitimate sources of income are eligible for participation in the Micro Pension Plan under Section 2 (3) of the Pension Reform Act (PRA) 2014:
- Self-employed individuals that belong to a Trade, Profession or Business Association
- Self-employed individuals with a business registration as a company, partnership or enterprise
- Employees operating in the "informal sector" who work with or without formal written employment contracts
- Other self-employed individuals
3. How do I register?
An eligible individual may choose to register under the Micro Pension Plan by opening an RSA with a PFA of choice and providing the required documentation as specified by the PFA.
4. Am I mandated to contribute a certain amount every month?
A Micro Pension Contributor may choose to contribute any amount towards his/her pension either daily, weekly, monthly or as may be convenient. All contributions are however expected to be made in Nigerian Naira (NGN).
5. How do I withdraw from my contributions under the Micro Pension plan?
The contributions under the Micro Pension Plan is divided and managed as two separate funds namely: Micro Pension Contingent Fund wherein 40% of the contributions will be payable for contingent withdrawals and the Micro Pension Retirement Benefits Fund wherein 60% of the contributions will be payable as retirement benefits in line with the PRA 2014 withdrawal guideline.