There are strong indications that Micro Pension Plan(MPP) subscribers in the country will soon get free health insurance cover as part of benefits of subscribing to the micro pension scheme.
To this end, LEADERSHIP learnt that the National Pension Commission (PenCom) has had meetings with health insurance stakeholders, comprising the National Health Insurance Agency (NHIA) and some Health Management Organisations(HMOs) on the possibility of procuring this cover for subscribers of the scheme.
Hence, the cost of the annual basic health cover which is about N15,000 per individual, according to findings, would be incurred by PenCom, hence, subscribers will not have to pay for this coverage.
With subscriptions of MPP foot-dragging, the pension industry regulatory body in conjunction with pension fund operators felt there is the need to include health insurance as a form of inducement to persuade more informal sector players to join the plan.
Speaking to journalists during the Special Day event of PenCom on the sideline of the Lagos International Trade Fair at the Tafawa Balewa Square, Lagos Island, Lagos at the weekend, the acting director general of PenCom, Ms. Omolora Oloworaran, said, the event was a medium to enhance awareness and sensitisation of the Contributory Pension Scheme(CPS) as well as micro pension scheme in a bid to woo more people and businesses to join the scheme.
Oloworaran, who was represented by the Zonal head, PenCom, Southwest Zonal office, Akinsola Adeseun, assured retirees and prospective retirees that they would be paid as and when due as the scheme is fully funded by both the employer and employee.
To him, “the employer and employee both contribute. The employer contributes 10 per cent, while the employee contributes a minimum 8 per cent, making 18 per cent all together, and this goes into the Retirement Savings Accounts (RSA) of the workers so that when they are retiring, the money is already invested, and it is ready for them to be taken out as their pensions at retirement.”
On his part, the head of Micro Pension department, PenCom, Dr. Babatunde Alayande, explained that, Micro Pension Plan is not just for the informal sector, but also for self employed professionals such as the self employed lawyers, town planners, engineers, among others.
PenCom, he said, will intensify its awareness and sensitisation programmes on micro pensions, adding that, “part of what the commission is looking at is the need to modify the name, micro pension, so that everybody will know that this is beyond the informal sector. The commission is working assiduously to make sure that there are incentives for people participating in this micro pension plan, especially, incentives for the informal sector.
“Part of the focus of the commission in this aspect is the need to incentivise the informal sector participants with basic health insurance plans to encourage them, so they do not just bring money and save, but have other benefits. The commission has ensured that contribution into Micro Pension Plan is flexible in the sense that you can contribute daily, weekly, monthly or quarterly, depending on the type of work you are doing.”
The RSA contribution of the micro pension participants, he noted, is split into two, comprising of the contingency and the withdrawal parts.
Meanwhile, the head of Corporate Communications, PenCom, Ibrahim Garba Buwai, noted that, micro pension is about financial inclusion, providing a platform for savings so that workers can have something to fall back onto, especially, at retirement or when they are no longer as active as before.
Earlier, the the president, Lagos Chamber of Commerce & Industry(LCCI), Gabriel Idahosa, while looking into the future of the pension industry, advocated expansion of public awareness on pension benefits, particularly, among informal sector workers, calling for campaigns in local languages, leveraging digital platforms, which can help reach more Nigerians, especially, in rural areas.
“To protect long-term fund values, Pension Fund Administrators (PFAs) should have more flexibility to invest in stable, high-yield assets like infrastructure bonds and REITs. Such investments can also benefit national development projects.
PenCom should consider having more engagement with representatives of the private sector to boost coverage and trust in the scheme. Prompt payment of benefits to retirees will deepen confidence in the scheme nationwide.
“By adopting digital inclusivity, promoting financial literacy, diversifying investment options, and enhancing regulatory measures, PenCom can further secure Nigerians’ retirement assets and contribute to economic stability,” he stressed.
