Personal Pension Scheme
Personal Pension Scheme is “any pension scheme to which the contributor contributes personally to provide benefits based on a defined contribution formula in the form of pensions or otherwise, payable on death or retirement.”
Personal Pension Scheme applies to individuals:
- who want to make voluntary contributions to enhance their pension benefits outside the mandatory schemes and any provident fund scheme, and
- in the informal sector who are not covered by any retirement or pension scheme under the mandatory part of the three-tier pension scheme.
- in the informal sector. A portion of their contributions may be accessed before retirement in accordance with the governing rules of the scheme.
The scheme pays a lump sum money after five years (of contribution) or upon death or retirement of member.