THE SEVEN HUNDRED AND SIXTY-SIXTH ACT OF THE PARLIAMENT OF THE REPUBLIC OF GHANA ENTITLED NATIONAL PENSIONS ACT, 2008 ( ACT 766 ) AN ACT to provide for pension reform in the country by the introduction of a contributory three-tier pension scheme; the establishment of a National Pensions Regulatory Authority to oversee the administration and management of registered pension schemes and trustees of registered schemes, the establishment of a Social Security and National Insurance Trust to manage the basic national social security scheme to cater for the first tier of the contributory three tier scheme, and to provide for related matters. DATE OF ASSENT: 1ST DECEMBER 2008 ENACTED by the President and Parliament: PART ONE-ESTABLISHMENT OF CONTRIBUTORY THREE-TIER PENSION SCHEME AND NATIONAL PENSIONS REGULATORY AUTHORITY Contributory three-tier pension scheme Establishment of contributory three-tier pension scheme 1. There is established by this Act, a contributory three-tier pension scheme consisting of (a) a mandatory basic national social security scheme; (b) a mandatory fully funded and privately managed occupational pension scheme, and (c) a voluntary fully funded and privately managed provident fund and personal pension scheme. Object of the scheme 2. The object of the scheme is to (a) provide pension benefits to ensure retirement income security for workers, (b) ensure that every worker receives retirement and related benefits as and when due, and (c) establish a uniform set of rules, regulations and standards for the administration and payment of retirement and related benefits for workers in the public and the private sector. Contributions to the Scheme 3. (1) An employer of an establishment shall deduct from the salary of every worker in the establishment immediately at the end of the month, a workers contribution of an amount equal to five and half per centum of the workers salary for the period, irrespective of whether or not the salary is actually paid to the worker. (2) An employer of an establishment shall pay for each month in respect of each worker, an employers contribution of an amount equal to thirteen per centum of the workers salary during the month. (3) Out of the total contribution of eighteen and a half per centum an employer shall within fourteen days from the end of each month transfer the following remittances to the mandatory schemes on behalf of each worker (a) thirteen and half per centum to the first tier mandatory basic national social security scheme; and (b) five per centum to the second tier mandatory occupational pension scheme. (4) The minimum contribution is eighteen and half per centum of the approved monthly equivalent of the national daily minimum wage. This statute regulates the management of pension in the country. It clear spells out that the second tier shall be managed by private pension managers. If government was that good at managing the entire pension contributions this law would have been superfluous. We all know how SSNIT has been using those resources. So the law is clear on what must be done with the second tier. Based on which law is the government dictating to Ghanaian workers and holding their money? The lawlessness in this Mahama government is repugnant. #MahamaMustGo I LOVE GHANA
Posted on: Mon, 27 Oct 2014 09:50:30 +0000
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