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19.10.2004 General News

Long term Saving Bill through second reading

By GNA

Accra, Oct. 19, GNA - A bill that seeks to create a retirement oriented long term saving scheme has gone through the second reading in Parliament.

It is envisaged that the scheme would help provide an attractive vehicle for employees and employers to cooperate in establishing supplementary pension funds.

Moving the motion for the legislative lap, Mr Yaw Osafo Maafo, Minister of Finance, said apart from Social Security and National Insurance Trust (SSNIT) pension scheme, there is no national contributory long-term saving scheme that provided retirement coverage or support.

He explained that CAP 30 is non-contributory, "it applies to only a limited number of persons in the public Service and because of its non-contributory nature; it cannot mobilize savings and generate financial resources for national economic growth." He said there were quite a number of such long-term saving schemes in the private sector.

The Minister said the inadequacy of the pension paid by SSNIT and the length of time required to qualify for the pension had led to contributors becoming disillusioned with the scheme. "The majority of beneficiaries under the SSNIT pension scheme would require an additional retirement saving scheme if they are to get adequate retirement cover."

Earlier the Civil Aviation Bill went through second reading. It seeks to amend and consolidate the Civil Aviation Authority Law 1986 (P.N.D.C.L 151) in order to provide broader internationally recognised standards and practices for the safety, security, efficiency and regularity of air transport.

The PNDCL 151 provided the legal foundation which converted the then Department of Civil Aviation Authority to Civil Aviation Authority (CAA) to enable it to have full responsibility of ensuring the efficient and effective regulation of air transport in the country.

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