PENCOM, Pension Funds

Over 8.41 million Nigerians have been captured in the Contributory Pension Scheme (CPS), with the number expected to rise as more Nigerians key into the scheme through the micro-pension scheme to be launched between January and March.

The figure was disclosed by the National Pension Commission (PenCom) in its Pension Fund Assets Summary as at December 2018, ThisDay reports. The commission also intends to bring 60 million Nigerians onboard overtime.

The new development can be linked to the plan of PenCom to increase the pension funds by N3 trillion from the current N8.45 trillion as a result of the micro pension plan

“We have no idea of the number of Nigerians that would key in at the launch of the scheme. However, we intended covering the entire informal sector over time, this is about 60 million citizens,” the Commission said.

What you should know about micro pension

Micro-pension plan, in accordance with the provisions of Section 2(3) of the Pension Reform Act 2014, is a plan for the self-employed and persons working under the informal sector. Its framework was drafted by PenCom in May 2018.

This pension plan is not mandatory. An eligible person may choose to register under the plan by opening a Retirement Savings (RSA) with a Pension Fund Administrator (PFA) of choice and provide the required documentation as specified by the PFA.

About the Contributory Pension Scheme

The Contributory Pension Scheme was established under Section 3(1) of the Pension Reform Act, 2014. It is an arrangement where both the employer and the employee contribute towards the payment of the employee’s pension at retirement.

It is fully funded through the monthly pension contributions that are remitted into an employee’s Retirement Savings Account (RSA), managed by a Pension Fund Administrator.

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