EFFORTS to drive the Micro Pension Plan (MPP) and capture informal sector workers remain one of the focusal areas of the National Pension Commission (PenCom), its Director-General (DG), Mrs. Aisha Dahir-Umar has said.
The DG spoke at the Journalists’ Workshop organised by the commission in Lagos.
Mrs. Dahir-Umar, who was represented by the Head of Corporate Communications Department, Mr. Abdulqadir Dahiru, reassured contributors in the Contributory Pension Scheme (CPS) of its commitment to the safety of pension funds.
She emphasised that adequate structures have been put in place to ensure the safety of the funds.
Speaking on the theme “Increasing Informal Sector Participation in the Contributory Pension Scheme (CPS): The case for Micro Pension Plan”, she said that it aligned with the commission’s objective of expanding coverage of the CPS.
She reiterated that the objective was to bring in to the CPS, Nigerians working in the informal sector and those who are self-employed through the MPP.
Therefore, she said, it is of utmost importance to make the Plan popular among informal sector workers and the self-employed.
She said: “The MPP was conceptualized to expand pension coverage to the informal sector, including small-scale businesses, entertainers, professionals, petty traders, artisans, and entrepreneurs.
“It was implemented to curb old-age poverty by assisting the workers, as mentioned above, to contribute while working and build long-term savings to fall back on when they become old.
“To create awareness of the Micro Pension Plan, the commission, in collaboration with the Pension Fund Operators Association of Nigeria, is championing an Industry Media Campaign in major cities in the country’s six geopolitical zones,” she added.
On the recent recapitalisation by the commission in the pension industry, mRS Dahir-Umar said: “As you know, PenCom increased the Minimum Regulatory Capital (Shareholders’ Fund) requirements of Pension Fund Administrators (PFAs) from N1 billion to N5 billion last year. The recapitalisation had a 12-month transition from April 27 2021, to April 27, this year. As of the deadline, all Pension Fund Administrators (PFAs) have complied with the Commission’s directive to increase the Minimum Regulatory Capital (Shareholders’ Fund) from N1 billion to N5 billion.
“The reason for recapitalisation was to ramp up the capacity of the PFAs to manage the increasing number of registered contributors, and the value of pension fund assets under which I am pleased to inform you stood at 9,795,957million and N14.27 trillion, as at June 30, 2022. it is expected that the exercise will bring about increased effectiveness and efficiency as well as improved service delivery in the industry.”
In his presentation entitled: “What you Need to Know About the Investment of the Micro Pension Fund (Fund VI),” Head, Investment Supervision Department National Pension Commission, Mr. Ibrahim Kangiwa, listed the Benefits of Micro Pension Fund Investments to the economy and to the contributor, stating that the Commission is committed to ensuring the safety of Micro Pension Fund and the investments.
Kangiwa said: “As the industry and financial system evolves, the Commission would also continue to develop and implement innovative policies to foster safety and fair returns on pension fund investment.”
The Head of Micro Pensions Department, Mr. Dauda Ahmed, in his presentation entitled “The Micro Pension Plan: Bringing Financial Security at Old Age to the Doorsteps of the Informal Sector,” listed the benefits of Micro Pension Plan.
He said Micro Pension Plan will improve the standard of living of the elderly as it provides a regular stream of benefits at old age; provide access to other incentives and secures financial autonomy and independence of retirees amongst other benefits.
The Head of Benefits and Insurance Department, Mr. Obiora Ibeziako, presented the paper entitled “The Administration of Retirement Benefits Under Micro Pension Plan”, where he gave insights into the benefits of administration of MPP, which he said, is divided into two: Contingent Withdrawal and Retirement Benefits Withdrawal.
“Withdrawals and accessing benefits shall be two types, reflecting the flexibility incorporated in the treatment of the contributions,” he added.