By Kofi Ahovi
The Vice President, John Dramani Mahama, has given the assurance that government will continue to support pension fund reforms.
According to him, the government will ensure that credible, capable and competent fund managers get involved in pension fund administration in the country.
He gave the assurance during a meeting with organized labour and employers at the Osu Castle last week.
Explaining the postponement of the launch of the new pension scheme, Vice President Mahama said there was the need to look into concerns raised by other stakeholders in pension fund management.
He indicated that government would deal with these concerns expeditiously to enable the launch to take place as soon as possible.
He added that the Attorney-General and Minister of Justice had been requested to speed up drafting and passage of the legislative instrument to the National Pensions Act, 2008 while ensuring full stakeholder participation.
The new retirement law covers a unified pension scheme for the country with enhanced retirement benefits devoid of the inconsistencies in the parallel public sector pension schemes.
This is in line with government’s establishment of a new three-tier contributory pensions scheme to replace the existing social security and CAP 30 schemes.
Bound by the National Pensions Act, 2008, the new pensions law comprises two essential schemes and a voluntary scheme; mandatory basic social security plan which includes an improved version of Social Security and National Insurance Trust (SSNIT) benefits, a mandatory occupational pension plan fully funded and managed by private hand. This gives contributors higher lump sum benefits than SSNIT and CAP 30 pension plans, and a voluntary provident fund and personal pension plans for the informal sector.
The new retirement law embraces workers in the informal sector (which forms 85% workers in the country) which had hitherto been marginalized.
The pension scheme will ensure improved living standards, financial independence of the elderly and increase national saving. It will also generate long term funds for economic development and allow workers to use their pension benefits as mortgage collaterals for their primary residence.
The Vice President, John Dramani Mahama, has given the assurance that government will continue to support pension fund reforms.
According to him, the government will ensure that credible, capable and competent fund managers get involved in pension fund administration in the country.
He gave the assurance during a meeting with organized labour and employers at the Osu Castle last week.
Explaining the postponement of the launch of the new pension scheme, Vice President Mahama said there was the need to look into concerns raised by other stakeholders in pension fund management.
He indicated that government would deal with these concerns expeditiously to enable the launch to take place as soon as possible.
He added that the Attorney-General and Minister of Justice had been requested to speed up drafting and passage of the legislative instrument to the National Pensions Act, 2008 while ensuring full stakeholder participation.
The new retirement law covers a unified pension scheme for the country with enhanced retirement benefits devoid of the inconsistencies in the parallel public sector pension schemes.
This is in line with government’s establishment of a new three-tier contributory pensions scheme to replace the existing social security and CAP 30 schemes.
Bound by the National Pensions Act, 2008, the new pensions law comprises two essential schemes and a voluntary scheme; mandatory basic social security plan which includes an improved version of Social Security and National Insurance Trust (SSNIT) benefits, a mandatory occupational pension plan fully funded and managed by private hand. This gives contributors higher lump sum benefits than SSNIT and CAP 30 pension plans, and a voluntary provident fund and personal pension plans for the informal sector.
The new retirement law embraces workers in the informal sector (which forms 85% workers in the country) which had hitherto been marginalized.
The pension scheme will ensure improved living standards, financial independence of the elderly and increase national saving. It will also generate long term funds for economic development and allow workers to use their pension benefits as mortgage collaterals for their primary residence.
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