PenCom Releases Draft Framework For Micro Pension Plan

The National Pension Commission (PenCom), via a public notice issued on Tuesday, 15 May 2018, disseminated a Draft Framework for Micro Pension Plan (the Framework) for stakeholders' consideration and comments.

The Framework seeks to extend pension coverage to employees of organisations with less than three employees and self-employed persons (Micro Pension Contributors) in accordance with the provisions of Section 2(3) of the Pension Reform Act 2014 (PRA). Upon implementation, the Framework will ensure provision of retirement benefits to the Micro Pension Contributors (MPCs) through clearly spelt out guidelines on operational modalities for the Micro Pension Plan (the Plan).

In addition to the operational modalities, the Framework also proposes strategies for securing participation in the Plan and minimum requirements for participation by licensed pension fund administrators and custodians.