Determined to achieve improved enrolment of low income earners in the Contributory Pension Scheme (CPS), the National Pension Commission (PENCOM), has released a new draft guidelines for micro pension plan implementation in the country.
Under the latest guidelines, contributors can decide to make contributions by cash, electronically or any payment platform approved by the Central Bank of Nigeria (CBN) on daily, weekly, monthly or as may be convenient basis.
According to the industry regulator, the plan is open to individuals who are 15 years and above, who have legitimate source of income and reside in Nigeria. The latest plan also provides that every contribution made shall be split into two, comprising 25 per cent for contingent withdrawal and 75 per cent for retirement benefits.
The new guidelines also stipulated that contributors shall be eligible to access the portion of their contributions available for contingent withdrawal one month after making the initial contribution.
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 new guidelines also provides 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 as well as be entitled to guaranteed minimum pension, provide they satisfy the provision of Section 84 (1) of the Pension Reform Act (PRA) 2014.
Similarly, the micro pension regulatory guidelines also stated 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.