Micro Pensions Scheme
Micro Pension Plan refers to an arrangement under the Contributory Pension Scheme (CPS) that allows the self-employed persons such as artisan, welders, market traders, etc. and persons working in organizations with less than three (3) employees to make financial contributions towards the provision of pension for their retirement. Micro Pension guarantees a secure future through steady income at retirement. It reduces old-age poverty and the process is easy, simple, and flexible.
Under the Micro Pension Plan, all Associations, Unions, Cooperatives, and Trades as well as the Professionals are covered and can participate in the scheme.
The Micro Pension Plan (MPP) is voluntary and solely funded by the contributor who must not be below 18 years of age with a legitimate source of income as contained under Section 2 (3) of the PRA 2014 which states that “Notwithstanding the provisions of subsection (2) of this section, employees of organizations with less than three employees as well as self-employed persons shall be entitled to participate under the scheme in accordance with guidelines issued by the Commission.”
The Micro Pension Plan has several benefits, which include:
- Flexible contribution remittances.
- Opportunity to make a withdrawal prior to retirement.
- Financial independence at old age.
Micro Pension processes at Tangerine Pensions Limited include:
- Registration of contributors
- Collection of contributions from contributors
- Management and investment of funds
- Access to withdrawal from the 40% contingency portion of the RSA after 3 months of the initial contribution. Subsequent withdrawal shall be once in a week from the balance of the contingency portion
- Benefit payments to contributors
- Provision of financial advisory services
- Provision of superior customer service to contributors