…Simplifies the documentation process for pension fund contributors
In an effort to build confidence in participating in the micro-pension scheme, the National Pensions Commission is developing a strategy to offer incentives such as health insurance to those who will adopt the scheme.
This is just as the Commission revealed it had simplified the documentation process for retirees under the contributory pension scheme.
PenCom Managing Director Aisha Dahir-Umar said so on Thursday in Abuja during the 2022 Workshop for Journalists.
The workshop which was organized by the Commission has as its theme “Increasing the participation of the informal sector in the contributory pension scheme: the case of the micro-pension scheme”.
On April 27, 2019, President Muhammadu Buhari had officially launched the Micro Pension Plan as part of his administration’s efforts to ensure that Nigerians who have worked hard during their active years in the service of their motherland live in dignity and retire. without any cause for alarm.
The Micro Pension Plan was launched by the National Pensions Commission to integrate workers in the informal sector of the economy.
Since the launch of the MPP in March 2019 by Buhari, more than 72,846 contributors had been registered by pension fund administrators.
The Micro Pension Scheme targets the vast majority of Nigeria’s working population who otherwise operate in the informal sector.
The MPP was designed to extend pension coverage to the informal sector, including small businesses, artists, professionals, small traders, artisans and entrepreneurs.
Speaking at the workshop, Dahir-Umar said the MPP is implemented to reduce old-age poverty by helping workers to contribute while working and build long-term savings to fall back on when they will grow old.
She said the theme of the conference aligns with the Commission’s goal to expand SPC coverage.
The aim, she added, is to bring into the CPS Nigerians working in the informal sector of the economy and the self-employed through the Micro Pension Plan.
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.
“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 revised regulations on the administration of pensions and retirement benefits had been issued to pension fund administrators. (PFA) for immediate implementation.
The revised regulations mandated PFAs to ensure that all RSA holder pre-retirement documentation 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 SPC.
The PenCom Boss said the major highlights of the revised regulations include clarifications and simplification of documentation processes, consolidation of the retirement savings account prior to the payment of pension benefits, accrued pension benefits for contributors of the private sector and additional lump sum payments.
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 cash inflows into the RSA from employers.
However, the additional payments will first be applied to increase the pension up to 50 per cent of the retiree’s final salary, with the balance being payable as a lump sum.
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 inflow into the RSA from a retiree life annuity does not exceed N100,000, the amount shall be paid directly into the retiree’s bank account, subject to the approval of the commission.
She added that the revised regulations also contain several new provisions on pension enhancement, voluntary contributions, payment under the micro-pension scheme, payment of missing persons benefits and payment of Nigeria Social benefits. Insurance Trust Fund.
To ensure strict adherence by pension fund administrators, the PenCom DG said the revised regulations also introduced administrative penalties on PFAs who fail to comply 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.
On the pension fund assets, she said it had risen to N14.27 trillion as of June 30, 2022.
She reaffirmed the Commission’s commitment to raise awareness and conduct social dialogue on the operation of the contributory pension scheme with relevant stakeholders for the smooth implementation of the contributory pension scheme in Nigeria.