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 at least three (3) 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 is perceived to generally have an irregular stream of income.
Mode of Withdrawal
Every contribution received is split into two portions: The Contingent portion (40%) and the Retirement Benefit portion (60%).
The Contingent portion of the contribution can be accessed totally or partially, only after the initial remittance has stayed in the RSA for at least 3 months. Thereafter, subsequent withdrawals can be accessed once in a week. Contributors have the option of converting their contingent portion to retirement benefit portion totally or partially at the end of each year.
Retirement Benefit Withdrawal
Contributors upon retirement and having attained the mandatory age of 50 years can access their retirement benefits in line with the Regulation for Administration of Retirement and Terminal benefits. This is also applicable to contributors that retired on medical grounds.
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