Over the years, pension in Nigeria has been limited to the formal sector. However, the introduction of the Micro Pension Plan (MPP) in 2019, has extended the Contributory Pension Scheme to include both formal and informal sectors of the Nigerian economy. Discover how you can be a part of it!
What is the Micro Pension Plan (MPP)?
The MPP is a retirement savings scheme specifically created for individuals in the informal sector (business owners, artisans) and organisations with less than three employees. It allows contributors to save towards their retirement or in case of incapacitation. The MPP is designed to provide future financial security for these groups and help them enjoy a peaceful life upon retirement or when they can no longer work to make a living.
Who Can Participate?
Anyone over 18 years of age with a legitimate source of income in Nigeria can join the Micro Pension Plan, including artisans, the self-employed, members of associations, unions, cooperatives, trades, and operators of small and medium-sized businesses.
How Does the Micro Pension Plan (MPP) Work?
The Micro Pension Plan allows contributors to make daily, weekly, or monthly contributions through various channels, including cash deposits, electronic transfers, and other electronic payment platforms approved by the Central Bank of Nigeria (CBN).
Each contribution is divided into two parts:
1. Contingent Contributions (40%):This portion is available for withdrawal to meet urgent needs. The first withdrawal can be made three months after the initial contribution and subsequently once a week.
2. Retirement Benefit Portion (60%):This portion is reserved for retirement and can be accessed from age 50 or in the case of health issues.
Benefits of the Micro Pension Plan (MPP)
1. Financial Security in Retirement: The MPP helps combat old-age poverty by providing a steady income stream during retirement, ensuring financial stability and peace of mind.
2. Flexible and Affordable Contributions: Allows small, flexible contributions based on individual financial capacity, making it accessible to those with varying income levels.
3. Accessibility and Inclusivity: Designed for individuals in the informal sector and small business owners, the MPP is a flexible system that allows periodic contributions and withdrawals.
4. Growth of Savings: Contributors’ funds increase over time due to interest paid by Pension Fund Administrators from investments made with the funds.
How Can You Participate?
1. Formal Working-Class Individuals: While the MPP is not designed for you, you can purchase the plan for your domestic staff, vendors, family, and friends ensuring they have financial security for their future. You can also spread the word about this inclusive pension plan.
2. Informal Sector Workers (artisans, self-employed, small business owners): You can join the Micro Pension Plan (MPP), encourage your colleagues, and spread the word about this opportunity.
To begin:
1. Visit any of the CrusaderSterling Pensions’ offices nationwide, or our website- www.crusaderpensions.com
2. Complete the registration process and provide the necessary documentation
3. Start making flexible contributions and withdrawals at your convenience.
Spread the word and encourage someone to take part in this beneficial scheme today!
For more information, call Tomi at 02012712800-4 or Chidiogo at 02012714605.
