General News
News | Sports | Entertainment | Nigeria Films | LifeStyle | Blogs | References


Support Pension Bill - Bediako

By Daily Guide
Fri, 18 Jul 2008 | Print | E-Mail | PDF | Graphics Version
Business/Finance

The Pension Reform Implementation Committee has urged all Ghanaians to support the passage of the National Pension Bill currently before Parliament, adding that it welcomes criticism from all stakeholders.

The bill is expected to be passed into law by Friday July 18, 2008 before Parliament goes on a one-month break.

At a news conference yesterday to throw more light on the bill, about which the Ghana Employers Association (GEA) expressed reservations last week, T.A Bediako, Chairman of the Implementation Committee said the bill provides a comprehensive pension scheme and therefore a secured future for employees.

The Pension Bill caters for the establishment of a new contributory three-tier pension scheme with a National Pension Regulatory Authority to control and oversee the efficient administration of the composite pension scheme.

It is based on the final report of the Presidential Commission on Pensions and the accepted recommendations contained in the Government White Paper of July 2006.

Mr. Bediako explained that the new scheme will improve qualifying conditions and survivors benefits, provide a balanced representation of all stakeholders on the board of trustees with chairmanship on rotational basis as well as improve second-tier lump sum benefits higher than the Cap 30 lump sum and much higher than the Social Security and National Insurance Trust (SSNIT) lump sum among others.

The three-tier comprises two mandatory schemes and a voluntary scheme.

While the first-tier is a mandatory basic national social security scheme which will incorporate an improved system of SSNIT benefits, the second-tier is an occupational pension scheme, mandatory for all employees but privately managed.

The third-tier is however a voluntary provident fund and personal pension schemes, supported by tax benefit incentives.

“It is pertinent to note that provision has been made in the third-tier voluntary Personal Pension Scheme to cater for the peculiar needs of workers in the informal sector of the economy which covers about 80 to 85 percent of the working population”.

The National Pensions Regulatory Authority will regulate both the public and private pension schemes and subsequently approve, regulate and monitor Trustees, Pension Fund Managers, Custodians and other institutions relating to pension matters.

The maximum contribution for the mandatory schemes according to Mr. Bediako will be based on the daily minimum wage.

In reaction to the GEA reservations, Mr. Bediako emphasized that the association was a major stakeholder involved from the inception of the work of the Implementation Committee and as such was represented on the Legal sub-committee which drafted the proposals.

In a related development, the Ghana Trade Union Congress (GTUC) says it welcomes government's acceptance of the findings of the Presidential Commission on Pensions and further acknowledged the proposed establishment of the three-tier pension scheme which will extend coverage of pensions to unprotected working people.

In a statement signed by the Acting General Secretary, Kofi Asamoah, the GTUC endorsed the proposed establishment of a National Pensions Regulatory Authority.

By Charles Nixon Yeboah

All trademarks and copyrights on this page are owned by their respective owners.