PenCom Encourages Micro-Retirement Scheme Contributors With Health Insurance Policy

0

THE National Pensions Commission (PenCom) says it is developing a strategy to expand its Micro-Pension Scheme (MPP) with an incentive for health insurance for contributors to the scheme.

Pencom said the incentive was part of its strategy to enroll more Nigerians in the program.

The Commission revealed that it had simplified the documentation process for retirees under the scheme to attract more people from the informal sector.

PenCom Managing Director Aisha Dahir-Umar said these today in Abuja during a workshop for journalists.

The theme of the workshop, organized by the Commission, was “Increasing the participation of the informal sector in the contributory pension scheme: the case of the micro-pension scheme”.

President Muhammadu Buhari had officially launched the MPP on April 27, 2019 as part of his administration’s efforts to ensure that Nigerians who had worked hard during their active years in the service of their motherland live with dignity and retire without any reason. to be alarmed.

The MPP was initiated by Pencom to integrate workers in the informal sector of the economy.

– Advertising –

Since the launch of the plan, more than 72,846 contributors have been registered by pension fund administrators (PFA).

The MPP, which targets a significant majority of Nigeria’s working population who, incidentally, operates in the informal sector, was designed to extend pension coverage to the informal sector, including small businesses, artists, professionals, small traders and artisans.

Dahir-Umar said the MPP was implemented to reduce old-age poverty by helping workers contribute while working and build long-term savings to fall back on when they get older.

She said the theme of the conference aligned with the Commission’s aim to expand the coverage of the Contributory Pension Scheme (CPS).

The aim, she added, was to bring Nigerians working in the informal sector of the economy and those who are self-employed through the MPP into the CPS.

She said, “It is of the utmost importance to educate the media about the MPP and gain your support to make the plan popular among informal sector workers and the self-employed.

“The Commission is aware of your essential role in disseminating factual information to its stakeholders. It is therefore imperative to constantly interact and inform yourself of recent developments in the pension industry and some of the important activities of the Commission.

– Advertising –

“Strategic efforts to pilot the micro-pension scheme remain one of the Commission’s main areas of interest.

“To build confidence in MPP participation, the Commission is developing strategies to provide incentives such as health insurance.”

DG Pencom also said that the Commission was implementing a series of measures to improve the pension system, noting that a revised regulation on “the administration of pensions and end-of-career allowances” had been issued to PFAs for immediate implementation.

The revised regulations require PFAs to endeavor to ensure that all pre-retirement documentation for the account holder is provided and completed within four months of the retirement date.

She explained that the regulations guide the process of accessing retirement and end-of-career benefits for contributors and retirees under the CPS.

The revised regulations state that retirees will be allowed to access an additional lump sum after the initial lump sum has been paid provided there are additional inflows of funds into their Retirement Savings Accounts (RSAs) from employers.

However, the additional payments will first be applied to increase the pension to 50 per cent of the retiree’s last salary, with the balance being payable as a lump sum.

– Advertising –

When the pensioner’s pension already amounts to 50 per cent of the last salary, the pensioner can choose to receive all the additional payments in the form of a lump sum.

Where the additional contribution into the RSA of a retired retiree life annuity does not exceed N100,000, the amount must be paid directly into the retiree’s bank account, subject to the approval of the Commission.

DG Pencom said that to ensure strict adherence, the revised regulations introduce administrative sanctions against PFAs who have not complied with the provisions of the regulations.

“The sanctions are intended to ensure that PFAs process the payment of pension benefits to retirees quickly,” she added.

Dahir-Umar disclosed that pension funds had reached N14.27 trillion as of June 30, 2022.

She reaffirmed the Commission’s commitment to raise awareness and maintain social dialogue on the functioning of the PSC with relevant stakeholders for its smooth implementation in Nigeria.


Share.

About Author

Comments are closed.