Workers Educated on New Pension Scheme in K'dua

Koforidua, July 20, GNA-The Ghana Pensions Regulatory Authority (NPRA) on Tuesday held a stakeholders' forum in Koforidua to educate and sensitize workers in both formal and the informal sectors on the New Three-Tier Pension Scheme in Ghana.

The forum sought to enlighten the workers on the benefits and the tax implications and exemptions on the new scheme as enshrined in the National Pensions Act (766) of 2008.

In his presentation, Mr Ernest Amartey-Vondee, the Acting Head of Regulations at the NPRA, stressed on the need for every individual to prepare adequately ahead of retirement so that one could have some funds to lean on at a time when they no longer have the strength to work for income.

He disclosed that the new pension scheme was a mechanism meant to boost workers' pension benefits at retirement, saying, it would cater for the establishment of a contributory three-tier pension scheme that would comprise two mandatory schemes and a voluntary scheme.

Mr Amartey-Vondee further indicated that the first tier was composed of a mandatory basic national security pension scheme which would incorporate an improved system of SSNIT benefits and would be mandatory for all employees in the private and public sectors.

He said the second tier involved an occupational pension scheme which would also be mandatory for all employees but would be privately managed and designed to give contributors higher lump sum benefits than was available formally under the SSNIT pension scheme.

He, however, explained that, the third tier was a voluntary provident fund and a personal pension scheme, where interested workers could on their own volition contribute towards their pension.

"The third tier is supported by tax benefit incentives which would provide additional funds for workers (formal and informal) who want to make voluntary contributions to enhance their pension benefits" he stressed.

Mr Amartey-Vondee pointed out that, the new pension scheme was important because the new law allowed workers to use their future lump sum pension benefits as collateral to secure mortgages or other needful things.

He however lamented that out of about 100,000 pension contributors,females formed only 25 per cent and therefore used the forum to encourage more females to join the scheme.

Mr Francis E.K. Akoto, of Ghana Revenue Authority (GRA), indicated that there were more tax exemptions workers were going to enjoy if they also contributed to the provident fund or the third tier scheme towards their retirement.

Mrs Rita Afua Owusu, the Acting Head of External Affairs at the NPRA, called on workers in the country to contribute to the new pension scheme to ensure a happier life for themselves at retirement.