PenCom unveils new guidelines, converts Micro Pension to Personal Pension to include more workers

PenCom unveils new guidelines, converts Micro Pension to Personal Pension to include more workers

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The National Pension Commission (PenCom) has introduced guidelines to redesign Micro Pension Plan to Personal Pension Plan to accommodate more workers who were restricted from making contributions into Retirement Savings Accounts (RSA) in previous guidelines.

According to the ‘Guidelines for Personal Pension Plan September 2025’ obtained by Dailyeconomy, they were issued by PenCom pursuant to Section 2(3) of the Pension Reform Act (PRA), 2014.

Section 2(3) of the Act entitles employees of organizations with less than three employees and self-employed persons to participate in the Contributory Pension Scheme in accordance with guidelines issued by the Commission.

“In furtherance of this provision, the Micro Pension Plan earlier introduced by the Commission is hereby re-designated as the Personal Pension Plan (PPP)” according to the guidelines.

These guidelines establish the Personal Pension Plan (PPP) as the framework for extending pension coverage to:
(a) self-employed persons;
(b) workers in the informal sector who are not mandatorily covered under the Contributory Pension Scheme; and
(c) employees in the formal sector who are mandatorily covered under the Contributory Pension Scheme but who may wish to make additional flexible contributions outside the mandatory scheme.

The guidelines prescribe the rules, procedures, and standards
applicable to the PPP, and are binding on all participants and operators under the Scheme.

For the purpose of clarity and operational consistency, the guidelines states that, “all existing Voluntary Contributions (VCs) under the Contributory Pension Scheme (CPS) are hereby deemed to form part of the Personal Pension Plan
(PPP).”

Accordingly, PFAs shall administer such contributions in line with the provisions of these guidelines.

PFAs shall ensure that contributors are properly informed that the designation of Voluntary Contributions under the PPP does not affect their rights or entitlements already accrued under the CPS.

In the case of mandatory contributors under the CPS, it states, additional contributions into the PPP may be made:
a. Directly by the employee (self-contribution), or
b. Through the employer, who may remit such contributions on behalf of the employee, subject to clear instruction and authorization from the contributor.

PFAs shall establish appropriate processes and platforms to receive such contributions, whether directly from contributors or through employers, ensuring that records are reconciled and credited promptly into the contributor’s Retirement Savings Account (RSA) designated for the PPP.

“PPP contributions by mandatory contributors are strictly
voluntary and supplemental to statutory obligations under the PRA,” the guidelines states.