No Matter What You Do
Secure Your Future With Our Micro Pension Scheme
The Micro Pension Scheme (MPS)is designed to help traders, artisans, professionals and other self employed people who do not qualify for the Contributory pension scheme (CPS)*, save conveniently for retirement.
The National Pension Commission operating under the Pension Reform Act 2014 already has the Contributory Pension Scheme running actively for individuals in corporate organizations with over 5 employees to help them save enough for retirement. These persons have a unique Personal Identification Number (PIN) with which they are identified.
Now, this opportunity has been extended to help low, middle and high income earners in the informal sector save easily by providing a regular flow of income in retirement. This sector constitutes the larger percentage of Nigeria’s working population and are perceived to generally have irregular stream of income.
Frequently Asked Questions
You will have to complete a registration form with a PFA providing basic personal details and stating Nature of business. An RSA PIN is issued afterwards
You can register by opening a Retirement Savings Account with your preferred pension fund managers
You will need a Proof of Identity such as Drivers License, Voters card, International Passport and National Identity card.
Yes, Valid Proof of Address is required such as Water bill, electricity bill and residential lease agreement.
The key documents required are a valid means of identification and any of the following documents as applies- Bank Verification Number, Letter of employment, Certificate of incorporation, Certificate of business registration, Evidence of membership of a registered association, union or cooperative society
You must be 18years and above, and resident in Nigeria to join.
Micro Pensions Plan is an arrangement where individuals save small amounts of money during their work life and the money is invested collectively to yield returns. It is targeted at low-income people, business people, Self-employed non-salary workers who are often without irregular income to save for their retirement.
To participate, you must fall into one of the following categories:
- You must be resident in Nigeria
- Have a legitimate source of income
- Self-employed persons who belong to a Trade, Profession, Cooperative or Business Association.
- Self-employed or an employee of an organization with less than three employees with or without formal employment contract.
All persons in business entities, organizations with less than three (3) employees, self-employed individuals who earn income through conducting trade or business and employees operating in the informal sector with or without formal written employment contract.
Contributions you make under the MPP shall be managed as one fund known as Micro Pension Fund. II. The investment shall be in line with the Regulation on Investment of Pension Fund Asset as issued by the Commission. III. Management Fees shall be in accordance with the Regulation on Fees Structure as issued by the Commission.
Yes, a contributor under Micro-Pension Plan can convert to Contributory Pension Scheme (CPS) where he/she secures employment in the formal sector with an organization that has three or more employees.
No, Participants in mandatory contribution cannot convert to Micro Pension Plan.
No. You can only make contributions in Nigerian currency.
No. You are either on the Micro Pension Scheme or the Contributory Pension Scheme
Micro Pension Contributors may make contributions daily, weekly, monthly or as may be convenient to them provided that contributions will be made in any given year.
The amount of contribution shall be dependent on your pension aspiration and financial capacity.
Contributions can only be made in Nigerian currency.
A monthly maximum administration fees of eighty naira for contributions of four thousand naira and above; and a maximum administration fees of twenty naira charged for contributions below the sum of four thousand naira, irrespective of the number of remittances that makes up the limits stated above.
There shall be no additional charge/costs other than what is specified in the guidelines
You can make contributions electronically through any payment instrument/platform, Cash deposit or other financial service agents approved by the Central Bank of Nigeria.
ARM Pension PFA shall confirm receipt of contribution remittance via electronic notification to the registered contact of the contributor
Every contribution you make shall be split into two comprising 40% for contingent withdrawal and 60% for retirement benefits.
Yes, as a participant, you have access to 40% of the total funds in your account. This 40% is referred to as contingent fund. The 60% which is the Retirement Benefits fund can be accessed only at retirement and attaining the age of 50years or on health grounds.
Yes. You can access all contingent contributions inclusive of all accrued investment income subject to applicable tax.
Yes. Contingent withdrawals shall be subject to applicable tax laws in accordance with the provisions of Section 10(4) of the PRA 2014.
As an MPC, you can start accessing three months after initial contribution
You as a Micro Pension Contributor will need to make requests to the PFA of the desired portion of the Contingent required and payment is expected in 48hrs. At ARM Pension PFA, we have put in place a technology driven procedure to ensure contributors have access to their contingent requested amount instantly.
A request from you indicating the preferred bank account.
You can access the Contingent portion once in a week.
As a Micro Pension Contributor, you can only make subsequent withdrawals once in a week from the balance of the contingent portion of the RSA.
No. The PFA shall process for payment after necessary verification and computation of tax implication if any, and thereafter notify the Commission after payment must have been made to the preferred bank account
You can do this through a Programmed Withdrawal with the PFA, or an Annuity with a preferred Insurance company
Yes, you can make contributions after retirement, but it will be treated as a Voluntary Contribution.
Yes. You can convert the contingent portion of your contributions to the retirement benefits portion at the end of every year.
Yes. As a Micro Pension Contributor, you have the option of transferring part/all of your outstanding balance on the contingent portion to your retirement benefits portion.
You shall be eligible to access pensions upon retirement and attaining the age of 50 years or on health grounds in accordance with the Regulation for the Administration of Retirement and Terminal Benefits.
Yes. All retirement benefit applications shall be approved by the Pencom Commission with the Regulation for the Administration of Retirement and Terminal Benefits.
As a MPC, you can enjoy MPG if you have satisfied the conditions of the MPG when you chose to retire on Programmed Withdrawal with the PFA
As a Micro Pension Contributor, you shall be entitled to Guaranteed Minimum Pension provided you satisfy the provision of Section 84(1) of the PRA 2014 and the Guidelines on Minimum Pension Guarantee issued by the Commission.
Yes. Any contribution you make after retirement shall be treated as Voluntary Contributions (VC) in line with the regulation and guidelines on VC Withdrawals
Yes, Micro Pension Plan has been successful in countries like Ghana, Kenya, and India.
The Pension Fund Administrator (PFA) manages and invest funds accumulated under Micro Pension Plan on behalf of the contributor, while the Pension Fund Custodian (PFC) keeps the fund and assets in safe custody
No. Micro Pension Plan account cannot be used as collateral for a loan
The Micro Pension contributor who secures formal employment shall notify his/her PFA for conversion into the employment pension. The Micro Pension contributor shall also retain his/her exiting RSA to be used for the mandatory payment