SSNIT urges employees to report employers that fail to pay their SSNIT contributions
5/25/2012 2:01:06 PM -
Takoradi, May 25, GNA- The Social Security and National Insurance Trust (SSNIT), on Thursday, admonished employees to endeavour to report employers that fail to pay their SSNIT contributions.
It added that payment of contributions included workers on probation as well as casual employees and, therefore, charged contributors to the three-tier pension schemes to upgrade their knowledge on the new Pension law so that they can insist on their rights.
The Western and Central Regional Area Manager of SSNIT, Mr Stephen Asamoah gave the advice at a day's seminar on the new Three-Tier Pensions Scheme, Act 766 in Takoradi.
It was organised by the Association of Ghana Industries in partnership with Provident Life Trust, First BanC, Cal Bank, GIZ and Enterprise Trustees Limited.
It brought together captains of industries, human resource managers, workers' union executives, accountants, internal auditors, account clerks, traditional rulers and the media, to upgrade their knowledge on the new Pension law passed in January 2010.
Mr Asamoah noted that since the passage of the new Pension legislation, had eroded the monopoly of SSNIT in terms of management of workers' pensions and paved way for public-private partnership.
The Regional SSNIT Manager indicated that the law had also brought competition in the management of workers retirement package, which would ultimately enhance effective and efficient management of workers gratuity.
Giving details about the benefits of the new Pension Act, Mr Asamoah stressed that, employees incomes are exempted from tax, especially when set aside for retirement related investment.
It also provides for a member of a scheme to opt to transfer his or her accrued benefits to another registered scheme when one changes employment.
In addition, both the previous employer and the trustees of that scheme are obliged to comply in effecting the transfer and the necessary notifications.
Mr Asamoah pointed out that the new Pensions law came with a compliance and performance monitoring regulator that would ensure improved service in the administration of schemes that would be privately managed under the second and third tiers.
The Pensions law protects the interest of contributors whilst the scheme provides for trustees to engage the services of fund managers and independent banks to provide custodial services, Mr Asamoah said.
The new Pension Act created three-tier schemes of contributions comprising the first-tier which deducts 13.5 per cent of workers' income, the second-tier that takes 5 per cent whilst the third-tier deducts up to 16.5 per cent of the contributor's earnings, especially those in the informal sector.