President John Evans Atta Mills today launched the new Three-Tier Pension Scheme, with a call on the National Pensions Regulatory Authority to ensure that the new pension scheme is well managed for the benefit of the Ghanaian worker.
He said the scheme, which could increase national savings and ensure availability of long term funds for economic development and promotion of growth and development of the capital, mortgage and insurance markets, should be well managed due to recent experiences from the global and financial crises.
President Mills recalled that successive governments have over the years been mandated with genuine and legitimate concerns, especially from the public sector workers to improve on the inadequate pensions paid to them through the Social Security and National Insurance Trust (SSNIT) Pension.
These concerns, the President noted, therefore stimulated the concern and awareness to reengineer the nation’s pension systems. The launching of this new package, he noted, will respond to the concerns and needs of pensioners, stressing that “the enactment of the new pension law, Act 766, answers a number of questions and fills the void in the nation’s pension administration”.
The pension package, among other things takes care of people in the informal sector, who constitute almost 85% of the workforce, enables the government to satisfy a constitutional requirement, under Article 37/6 of the 1992 Constitution, which enjoined government or the state to provide a comprehensive contributory scheme that should be maintained and guarantee “economic security” for self-employed persons and other citizens, he said.
“We have come here to see a culmination of a process. This process did not come by chance. It has taken months and years of hard work and consensus building”, he said, and used the occasion to congratulate all those who contributed to the realisation of the scheme. He reminded the National Pension Regulatory Authority of the responsibilities that has been trusted to them by the people of Ghana, especially with regard to the informal sector.
The President also urged the pension fund managers to organise a comprehensive education and sensitisation programme to encourage individuals, associations and groups to participate in the scheme. “I am very happy that the scheme makes it possible for pensioners or workers to use their future lump-sum benefits as collateral to secure their own mortgages, a way to ease the accommodation problems in the country” he said.
The President, who associated himself with pensioners throughout his address, also noted that investment funds will be released if the scheme is properly managed, adding “you should make sure that whilst you ensure that funds are made available, you do not over stretch the system”.
Mr. Richard Kwame Asante, Board Chairman of the National Pensions Regulatory Authority, said the new Pensions Law (National Pensions Act, 2008-Act 766) caters for the establishment of a contributory three-tier pension scheme and a Pensions Regulatory Authority.
The three-tier scheme, according to Mr. Asante, comprises two mandatory schemes and a voluntary scheme. The first tier is a mandatory basic national social security scheme, which will incorporate an improved system of SSNIT benefits, while the second mandatory fully funded and privately managed occupational pension scheme, is designed primary to give contributors higher lump-sum benefits than SSNIT and the CAP 30.
The third voluntary provident pension scheme is targeted at the informal sector and provides additional benefits to workers in the sector who want to make voluntary contributions to enhance their pensions.
He appealed to government to provide the authority with adequate office accommodation, support the recruitment of staff with attractive remuneration to carry out their functions and provide the necessary logistics.
The Minister for Employment and social Welfare, Mr. Stephen Amoanor Kwao assured the scheme of his ministry’s support.
Source: ISD (Elorm Ametepe); www.myjoyonline.com
At the on going U-20 world cup in Egypt, Ghana progressed to the Semi-Finals, thanks a disciplined display against a very talented Korean side. The Black Satelites were 2-0 up within 35 minutes, through strikes from Adiyiah and Osei. The Koreans then pulled one back on 38 minutes, and continued to dominate. Despite that, it was the Satelites who looked dangerous on the counter-attacks. After spurning chances, the Ghanaians made it 3-1 through Adiyiah’s 2nd of the game and sixth of the tournament with a wonderful solo effort. The Koreans pulled another on back but was too late.