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

What are the requirements for Micro Pension registration?

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

How do I register for Micro Pension Plan?

You can register by opening a Retirement Savings Account with your preferred pension fund managers

What proof of identity do I need to register?

You will need a Proof of Identity such as Drivers License, Voters card, International Passport and National Identity card.

Will I be required to provide proof of Address?

Yes, Valid Proof of Address is required such as Water bill, electricity bill and residential lease agreement.

What documents will I need to join the Micro pension Plan?

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

What is the minimum age required to join the MPP Scheme?

You must be 18years and above, and resident in Nigeria to join.

What is the Micro-pension Plan?

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.

Eligibility of Participation

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.

Who does the Micro-pension plan cover in Nigeria?

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.

How will my Micro Pension Fund/Assets be invested?

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.

Can a contributor under MPP convert to CPS?

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.

Can a contributor under CPS convert to MPP?

No, Participants in mandatory contribution cannot convert to Micro Pension Plan.

Can I make contributions into my Micro Pension fund in any currency?

No. You can only make contributions in Nigerian currency.

As a Micro-Pension contributor, how often can I remit contributions into my account?

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.

What is the minimum contribution I must remit in a month?

The amount of contribution shall be dependent on your pension aspiration and financial capacity.

Can a participant make contributions in any currency?

Contributions can only be made in Nigerian currency.

How much will I be charged for administrative fee?

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.

Is there any other charge or costs I should expect?

There shall be no additional charge/costs other than what is specified in the guidelines

What mode of payment can I utilise to remit contributions to my Micro Pension RSA?

You can make contributions electronically through any payment instrument/platform, Cash deposit or other financial service agents approved by the Central Bank of Nigeria.

How will I be notified when payment is received?

ARM Pension PFA shall confirm receipt of contribution remittance via electronic notification to the registered contact of the contributor

How will my contributions be reflected on my MPC's retirement savings account?

Every contribution you make shall be split into two comprising 40% for contingent withdrawal and 60% for retirement benefits.

As a participant under MPP, can I have access to my fund at any time?

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.

Can I withdraw all my contingent portion of contributions inclusive of all accrued investment income?

Yes. You can access all contingent contributions inclusive of all accrued investment income subject to applicable tax.

Will my contingent withdrawal be subject to any form of tax deduction

Yes. Contingent withdrawals shall be subject to applicable tax laws in accordance with the provisions of Section 10(4) of the PRA 2014.

When can I start accessing my pensions?

As an MPC, you can start accessing three months after initial contribution

How can I access the 40% contingent portion?

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.

How often can I as a MPC access the Contingent portion?

You can access the Contingent portion once in a week.

How often can I make subsequent withdrawals after initial withdrawal?

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.

Will my request for contingent withdrawal be sent to Pencom commission for approval before payment?

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

How can I access retirement benefits?

You can do this through a Programmed Withdrawal with the PFA, or an Annuity with a preferred Insurance company

Can I continue to make contributions even after retirement?

Yes, you can make contributions after retirement, but it will be treated as a Voluntary Contribution.

Can I convert all my contingent portion of the contributions to retirement benefits portion before final retirement?

Yes. You can convert the contingent portion of your contributions to the retirement benefits portion at the end of every year.

At retirement, can I transfer all/part of my outstanding balance on the contingent portion to retirement benefit portion?

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.

At what age can I access my retirement benefit as an MPC?

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.

Will my request be forwarded to the Pencom Commission before payment is initiated at retirement?

Yes. All retirement benefit applications shall be approved by the Pencom Commission with the Regulation for the Administration of Retirement and Terminal Benefits.

Can I as a Micro Pension Contributor (MPC) enjoy Minimum Pension Guarantee (MPG)?

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

Will I also be entitled to the Guaranteed Minimum Pension?

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.

Can I make further contributions after retirement?

Yes. Any contribution you make after retirement shall be treated as Voluntary Contributions (VC) in line with the regulation and guidelines on VC Withdrawals

Has the micro pensions scheme been successful in other countries?

Yes, Micro Pension Plan has been successful in countries like Ghana, Kenya, and India.

Who will manage and keep custody of funds accumulated under the Micro Pensions Plan?

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

Can a contributor use his Micro Pension Accounts as collateral for a loan?

No. Micro Pension Plan account cannot be used as collateral for a loan

What happens if the Micro Pension Contributor gets formal employment?

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

For more information on the Micro Pension Scheme, please contact us.