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You Are Here: Home » Insurance, Lead Story » Ghana gets new pension scheme in 2010
The current pension schemes operating in Ghana will cease to be operational come January 2010.
The existing pension systems, the social security known as SSNIT which is managed by the Social Security and National Insurance Trust and what is known as Cap 30 or government scheme will be replaced by a three-tier pension scheme.
The aim of the new system is to improve the pension of Ghanaians as the current system has not been effective in addresing the needs of Ghanaians on retirement.
The project consultant of Pension Reform, Mr. Daniel Aidoo Mensah told editors and media managers at a working dinner organized by the newly established National Pensions Regulatory Authority (NPRA) at the Alisa Hotel in Accra the new law that established the NPRA will decentralize and unify all the pension schemes in four years.
He said the new three-tier pension scheme he said will include the mandatory, private and voluntary schemes. According to Mr. Mensah the first two schemes will be mandatory and will be managed by a board of trustees and all Ghanaian workers will have to contribute. However as the name suggests, individuals will decide if they want to contribute to the voluntary scheme to up their benefits.
The new pension scheme he said will be an 18.5% contribution. He also said employees will be compelled under the new scheme to pay workers’ contributions at least at the existing minimum wage irrespective of how low the workers earn.
Under the new scheme, the period under which contributors can access the funds has been reduced from 20 years to 15 years and contributors can also use their future lump sum contributions as collateral and for mortgages.
Mr. Mensah indicated that under the new system, contributions up to a specified limit is tax exempt and will be fully funded.
The new pension scheme, he added has taken into account the socio-cultural needs of Ghanaians.
By Emmanuel K. Dogbevi
This is a victory for all ghana
improvement at last