Menu

Metropolitan Launches Pension Trust

Fri, 20 Apr 2012 Source: Daily Guide

The Metropolitan Group, on Tuesday demonstrated leadership when it launched its debut Pension Trust to manage the second and third tier funds of workers in the country with a promise of good returns.

The group, which comprises Metropolitan Life and Momentum Health, aims to use its latest subsidiary, the Metropolitan Pensions Trust Ghana Limited, to give workers an opportunity to better plan their retirement.

The new three-tier pension law which was promulgated in 2008, sanctions the operation of private management and administration of the second and third tier pensions with a view of giving an enhanced income replacement ratio that would enable retirees to meet their additional social responsibilities.

The law authorized the first tier’s contribution of 13.5 percent to go to the Social Security and National Insurant Trust (SSNIT), while the second tier 5 percent contribution as well as the voluntary third tier is to be managed by private institutions.

It was in line with this that Metropolitan Pension Trust Ghana Limited was incorporated in October 2010 to offer corporate trustee and administration services to all employers and employees to efficiently manage their pension funds for good returns.

At a ceremony to introduce the trust in Accra, Diop Frimpong, Chief Executive Officer of Metropolitan Ghana, said, “The Ghanaian worker can be sure that entrusting us with the administration of their pension will guarantee them solid returns and the peace of mind that comes with knowing their pensions are secure by a giant financial services provider.”

He told the audience a story of a man who started his pension contribution at a younger age, but did not consider it important, only to find out after his retirement that he had joined a fly by night pension trust company.

“There are still many people like the young man today. There are going to be lots of fly by night companies. But the Metropolitan has been and will continue to be a solid rock,” he said.

Arnoldus J. Kruger, Regional Director in charge of West Africa and New Businesses of Metropolitan International, noted that Ghana’s new pension region had a positive impact on the development of the capital markets in the country.

He underscored that the value proposition of Metropolitan Pension Trust stood on five pillars, namely meticulous product development to ensure flexibility, security and choice of investment portfolios for customers; operational efficiency through web accessible reports for employers and online member benefit statements; the use of risk management experts; marketing strategies aligned with the needs of the local market; and trust.

“The brand Metropolitan is endorsed by over 10 million customers across Africa, we believe this is a testimony for the confidence a prospective customer would seek in doing business with us,” said Mr Kruger.

Professor Stephen Adei, an economist and lecturer at the Pentecost University who was the guest speaker, lauded the new pension regime which is allowing private participation, saying, “This is a major mile stone which would lead to huge transformation in the financial landscape in the next few years.

He mentioned that a new pension would impact on the economy, social welfare and lead to a sustainable development path of the nation.

“I believe that pensions when properly managed, is the single most important source of long term funding for development in the country. Even in the advanced country pension fund is a major single source of financing for mortgages, for infrastructure development and other major things.”

Source: Daily Guide