Accra, Sept. 15 GNA - Mrs Mary Chinery-Hesse, Chief Advisor to the President, has said government would implement the recommendations of the Presidential Commission on Pensions and it would not allow dust to gather on it on the shelves as other reports.
She said the implementation of the Report's recommendations would be a significant achievement for the three-tier pension scheme to replace the current system and it would be one of the legacies of President John Agyekum Kufuor.
Mrs Chinery-Hesse was speaking at a cocktail organised by the Chairman and Members of the Presidential Commission on Pensions to thank workers, employers and organized labour for their inputs into the Report.
She said one other dimension, which the Report dealt with although it was not part of the term of reference of the Commission, was the recognition given to the aged to enable them to enjoy free ride on buses and to receive free medical treatment.
"This is a respect government can give to the aged, who have contributed to nation building," she said.
Mr T. A. Bediako, Chairman of the Commission, said the work of the Commission became more participatory, since organized labour, the Tri-Partite Committee and a cross-section of the public made useful inputs into the Report.
He particularly thanked workers, who had the patience for the Committee to carry on its work at a time when there was agitation over pensions, especially concerning Cap 30.
Mr Kwasi Adu-Amankwah, Secretary-General of Ghana Trades Union Congress (TUC) commended the Commission for its useful work and urged the Government to implement the recommendations to satisfy employers and workers.
Under the three-tier system, the first tier is a mandatory Basic State Social Security Scheme to be administered by a structured Social Security and National Insurance Trust (SSNIT), which would pay only periodic monthly and other pension benefits, such as survivors and invalidity benefits.
The new system would be a defined benefit scheme, benefiting from a portion of contributions from the employee and the employer to SSNIT, with both paying five per cent and 12.5 per cent, respectively. SSNIT will not pay the 25 per cent gratuity lump sum under the new scheme.
The second-tier, also a mandatory, privately managed occupational pension scheme is a defined contribution pension scheme paying mainly annuities to enhance monthly pension benefits.
The legislated contribution of four per cent would be hived off SSNIT, while the employer and the employee in equal proportion would contribute the remaining one per cent.
The third-tier would be a voluntary private pension scheme in line with the provisions of the Long-Term Savings Act (LTSA), 2004 (Act 679), which offered attractive tax incentives. Additionally, existing provident funds and similar schemes, which may want to take advantage of the third-tier, would have to modify their rules to comply with the provisions of the LTSA. 15 Sept. 06
