Chartered accountants discuss new pension scheme

Accra, Oct. 29, GNA - Benefits of the new three-tier pension scheme would be an important source to meet the financial needs of workers after retirement, Mr Daniel Aidoo Mensah, member of the Presidential Commission on Pensions said in Accra on Thursday. He said it was therefore essential that a system of prudential supervision and regulation was instituted to protect the interest of scheme members and safeguard the stability of the pension system. Mr Mensah was speaking at the 2009 Presidential Luncheon of the Institute of Chartered Accountants, Ghana (ICAG) in Accra. It was on the theme: "The New Pension Scheme for Ghana: Its Impact on Companies and Industries."

The ICAG was established by an Act of Parliament, Act 170, in 1963 to regulate the accountancy profession in Ghana. Its members are the only persons in Ghana recognised under the Companies Code (Act179) 1963, to audit companies. Mr Mensah noted that the scheme was envisaged to add impetus to the development of the financial market and eventually lead Ghana into economic independence and prosperity. He said companies had certain obligations to meet under the Pension's Act. These include arrangement for their employees to join the new scheme, establish a single-employer scheme employees or participate in a master trust scheme that is (a multiple-employer scheme) open to employees of more than one employer. Mr Mensah said requirements from industries included a licence for trustees and the registration as a pension fund custodian to safeguard security of fund assets.

Trustees must be licensed by the authority entrusted with the overall responsibility for the administration and management of the privately manage-second and third tier schemes. Employers were also required to take adequate insurance to indemnify scheme members against any losses of assets caused by malfeasance or misconduct of the trustees or service providers. Mr Mensah said a major benefit of the new scheme was the provision, which allowed workers to use their future lump sum pension benefit as collateral to secure their primary residence, before attaining the retirement age.

In a speech read on his behalf, the Finance Minister Dr. Kwabena Duffuor, said the new scheme was to remedy the weaknesses of the previous scheme and improve the living conditions of workers after retirement. He said the success of the scheme would depend on true professionalism from members of the association. Ms. Cecelia Nyann, President of the Association noted that planning for retirement is a life changing decision to make and people with high expectations who are disappointed with their benefits could meet their demands. She called on workers to reduce their luxuries and invest to afford a better life after retirement. 29 Oct. 09