In a move to make the country’s Micro Pension scheme easy for contributors, the National Pension Commission, PENCOM has directed that contributors can elect make contributions daily, weekly, monthly or as may be convenient to them.
The regulator stated this in its recently released draft guidelines for micro pension plan, adding that the plan is opened to individuals who are 15 years and above, who have legitimate source of income and reside in Nigeria.
It noted that every contribution made shall be split into two comprising 25 per cent for contingent withdrawal and 75 per cent for retirement benefits. It added that contributions shall be made by cash, electronically or any payment platform approved by the Central Bank of Nigeria (CBN).
PenCom maintained that contributors shall be eligible to access the portion of their contributions available for withdrawal one month after making the initial contribution, stressing that contingent withdrawal can be made anytime.
According to PenCom, a contributor may withdraw the total balance of the contingent portion of his/her Retirement Saving Account (RSA) including all accrued investment income thereto, and that payment of contingent withdrawal shall not exceed two working days.
The regulator noted that a contributor shall be eligible to access pension upon attaining the age of 50 years or on health ground in accordance with the law, adding that a contributor shall also be entitled to guaranteed minimum pension, provide they satisfy the provision of Section 84 (1) of the Pension Reform Act (PRA) 2014.
It posited that guaranteed minimum pension will be given, provided the contributor made contributions for a cumulative period of not less than 120 months and the RSA balance at retirement shall not be less than N500,000.
Managing Director, AIICO Pension Managers Limited, Eguarekhide Longe, said his firm has put in place necessary requirements for effective implementation of the micro pension plan.