PenCom, PenOp mull portability from CPS to MPP

From left: Director Information and Communications Technology National Pension Commission, Michael Popoola; Acting Director General Omolola Oloworaran and Executive Secretary Pension Fund Operators Association of Nigeria Oguche Agudah at the event.

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Chuks Udo Okonta

The National Pension Commission (PenCom) and Pension Fund Operators of Nigeria (PenOp) are considering opening up space for Retirement Savings Account (RSA) holders to migrate from the Contributory Pension Scheme (CPS) to Micro Pension Plan (MPP).

This was part of the highlights from the Micro Pension Industry Stakeholders Engagement Forum held today in Lagos.

Acting Director General National Pension Commission Omolola Oloworaran at the event.

The Acting Director-General PenCom Omolola Oloworaran, while speaking on the theme: ‘Reimagining Micro Pension’ said PenCom is considering market segmentation; rebranding; robust technology deployment and incentives as measures for transforming the Micro Pension Plan.

Acting Director General National Pension Commission Omolola Oloworaran (middle) with dignitaries at the event.

She noted that part of the rebranding measure is to change the name and also allow retirement savings account holders to migrate from the contributory pension scheme to micro pension plan.

According her the informal sector of the economy which engaged about 78 per cent of the population, needs the micro pension plan to provide a secure future citizen eking their livelihood in the sector.

The Head, Micro Pensions Department PenCom Babatunde Alayande, in a paper entitled: ‘Overview of the Micro Pension Plan’ recommended a segmentation of the MPP market to take care of different status of potential participants; rebranding and renaming MPP to greater appeal to the different segments of the market.

He also called for alternative funding sources for incentivizing MPP; enhance service delivery; increase engagement and public awareness campaign; possibility of converting from mandatory CPS to MPP amongst others.