The Contributory Pension Scheme (CPS) is a vital initiative empowering individuals to secure their financial well-being in old age. Tailored initially for formal sector employees, the CPS was extended to include informal sector workers following the Pension Reform Act (PRA) amendment in 2014.
Guided by the provisions of the PRA 2014, the National Pension Commission (PenCom) introduced the Micro Pension Plan (MPP) with the specific objective of broadening pension coverage to include workers in the informal sector. Under the MPP, private sector organisations with less than three employees and self-employed individuals can participate in the CPS.
