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Chuks Udo Okonta
The National Pension Commission (PenCom) and Pension Fund Operators Association of Nigeria (PenOp) are presently on the drawing board remodeling the Micro Pension Plan, Inspenonline can report.
This medium gathered that the parties are not comfortable with the traction on the plan, hence, the need to embed unique incentives that would captivate informal sector workers to embrace the plan.
It was gathered from a reliable source that the parties plan to bring government in the plan by ensuring the government creates credit incentive for subscribers, while the operators embed health insurance in the plan.
According to the source, the credit facility, would enable subscribers access soft government loans to support their businesses, while they make contributions.
He noted that the health insurance scheme, would help subscribers manage their health status at an affordable rate, thereby, saving their business from financial pressure on healthcare.
Inspenonline also learnt that the pension operators are exploring on how to partner insurance agents in the distribution of micro pension.
PenCom said a total of 3,898 Micro Pension Participants were registered during the first quarter of 2023 by 17 Pension Fund Administrators (PFAs), bringing the total number registered to 93,225 as at March 31, 2023.
It submitted that within the first quarter, Stanbic IBTC Pension Managers Limited, ARM Pension Managers (PFA) Limited and Tangerine APT Pensions Limited registered the largest number of Micro Pension Participants with 2,376; 410 and 320 respectively.
It noted that Pensions Alliance Limited, Norrenberger Pensions and Crusader Sterling Pensions Limited, had the least RSA registered with 15, 10 and 01 respectively in the same period.
“The total registered figures indicated that, ARM Pension Managers (PFA) Limited, Stanbic IBTC Pension Managers Limited and Tangerine APT registered the largest number of Micro
Pension Participants with 22,990 (24.66 per cent); 17,338 (18.60 per cent) and 7,331(7.86 per cent) respectively, as at 31 March 2023,” PenCom said.
The pension regulator posited that the total Pension Contributions received from Micro Pension Contributors (MPCs) in Q1 2023 was ₦48,082,343.75 bringing the total pension contributions received to ₦416,116,736.56 from 9,853 Micro Pension Participants as at 31 March 2023.
PenCom submitted that a breakdown of the pension contributions received in Q1 2023 showed that Stanbic IBTC Pension Managers Limited, ARM Pension Managers (PFA) Limited and Premium Pensions Limited had the highest pension contributions within the period with N24,131,356.90; N7,747,361.55 and N3,487,500.00 respectively, adding that however, the PFAs with the lowest contributions were Norrenberger Pensions, Oak Pensions Limited, and Radix Pensions Limited with N13,220.00, N11,385.00 and N9,000.00 respectively.
It maintained that out of the total pension contributions received, Stanbic IBTC Pension Managers Limited, ARM Pension Managers (PFA) Limited and Fidelity Pension Managers Limited accounted for the largest amount with N184,409,515.67; N57,978,374.64 and N40,750,187.14 representing
44.32 per cent; 13.93 per cent and 9.79 per cent respectively as at 31 March 2023.
It noted that four PFAs processed and approved MPP Contingent Withdrawals for 13 MPCs amounting to N2,979,346.68 in Q1 2023, stressing that this brings the total contingent withdrawals to N29,143,028.17 from 149 MPCs as at 31 March 2023.
PenCom stated that a total of 89 Micro Pension Participants from eight PFAs converted from MPP to the CPS in Q1, 2023 with a contribution of N1,503,327.36, which brought the total conversion amount to N6,329,608.08 from 566 MPCs as at 31 March 2023.
