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From Magnus Eze, Enugu
The National Pension Commission has said that it floated the Micro Pension Plan (MPP) under the contributory pension scheme to cover artisans, self-employed persons and those working for organisations with less than three employees, mainly in the informal sector.
Aware that about 90 per cent of workers were in the informal sector, the commission said there was a need for a long term voluntary financial plan for the provision of pension coverage to such people.
Head, Corporate Communications of PENCOM, Abdulqadir Dahiru, who spoke to Daily Sun at the just concluded 33rd Enugu International Trade Fair stated that this category of workers lacked pension protection for old age.
He said with the current increase in longevity, their people were at risk of old-age poverty.
‘Therefore, Section 2[3] of the Pension Reform Act [PRA] 2014 expanded coverage of the Contributory Pension Scheme to the self-employed and persons working in organisations with less than three employees through MPP. The platform avails workers in this sector the opportunity to easily register and contribute in a flexible manner and in a safe and secure environment for their pension at retirement. The MPP would ensure that there is pension coverage for all eligible Nigerians,’ Dahiru said.
Speaking further on the benefits of the micro pension plan, he explained that it was to help individuals cultivate the habitat of saving for their future/retirement and improve the standard of living of the elderly by providing a regular stream of income in old age.
According to him, other benefits of the micro pension plan were providing access to other incentives and secure financial autonomy and independence in old age.
He further added that contributions will be passed to the named beneficiary in case of the contributor’s death.
He urged prospective contributors to register with any Pension Fund Administrator of choice with valid means of identification such as National Identifications such as National Identification Number (NIN).
