The Micro Pension Plan (MPP) for the informal sector has attracted 62,463 artisans two years after it was launched.
Statistics obtained on Monday from the National Pension Commission (PENCOM) showed these artisans have opened Retirement Savings Accounts (RSA) with Pension Fund Administrators (PFA) as of the end of December 2020.
According to the commission, the artisans have contributed a total of N89.68million.
The commission stated that in the fourth quarter, 20 PFAs registered 3,663 contributors under the MPP.
“In the same vein, a total sum of N25,024,528.08 was remitted to the RSAs of the contributor within the review period,” it said.
It earlier disclosed that as of the end of third quarter of 2020, “Cumulatively, a total of 58,800 informal sector workers had registered under the MPP and contributed a total sum of N64,662,323.38 from inception in March 2019 to September 30, 2020.”
READ ALSO: Limited Use Of Gas For Power Affects 120m Nigerians – Sylva
The Pension Reform Act (PRA) which came into effect in 2004, provides a contributory arrangement in which both the employer and employee contribute into the workers’ RSAs.
However, the CPS was only opened to the formal sector since inception, until the Federal Government officially extended it to the informal sector in March 2019.
As part of the financial inclusion objectives of the government, the PFAs were instructed to ensure the development of the micro pension plan to enable the artisans and other self-employed workers to plan for their financial future.
According to the MPP, the informal sector contributors will be allowed to withdraw at least 40 per cent of the contributions in their RSAs before retirement.
This is, however, different from what is obtainable with the formal sector in which contributors could only access 25 per cent of their RSA balance after four months of being out of paid employment or at retirement.
However, to start withdrawing the 40 per cent contribution, the artisan must have contributed to his RSA for a minimum of three months.
 for the informal sector has attracted 62,463 artisans two years after it was launched.){kind=link}