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Pension Scheme in Ghana

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Submitted By lawrenceansah
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Laws Governing the National pension scheme in Ghana

The National Pensions Act 2008 is the prevailing law governing the pension scheme in Ghana. This law was passed to provide for pension reform to replace the then cap 30 and SSNIT law (Social Security and National insurance trust Law) which used to be the Law governing the pension scheme. The National Pensions Act, 2008 was to introduce a contributory new three-tier pension scheme. The Act state that the first tier provides a mandatory basic national social security scheme, a mandatory fully-funded and privately managed
Provident fund and personal pension scheme as the second tier and a voluntary fully funded and privately managed provident fund and personal pension scheme.
The first tier is managed by The Social Security and National Insurance Trust, the second and third tier is privately managed by approved trustees appointed by the Pensions Regulatory Authority with the assistance of Pensions Fund managers and custodians registered by the Authority.

The second tier is an occupational pension scheme aimed at giving contributors higher lump sum benefits than the then SSNIT OR CAP 30 PENSIONS SCHEME.

The third tier, apart from being voluntary provident fund and personal pension schemes is supported by tax benefit incentives to provide additional funds for workers who want to voluntary contributions to enhance pension benefits as well as workers who are not in the formal sector. It is not mandatory.

Section 5 article 1 of the pension’s act 766 establishes the National Pensions Regulatory Authority which is defined in article 2 of the same section 5 as “body corporate with perpetual succession and a common seal and may sue and be sued in its corporate name.

Section 6 state that “the object of the authority is to regulate and monitor the operations of the scheme and ensure effective administration of pensions

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