President to launch new pension scheme

Accra, Aug. 27, GNA - President John Evans Atta Mills is to launch the new three tier pension scheme on September 16, 2009, Vice President John Mahama announced on Thursday.

The actual implementation date however remains January 2010, when deductions for the new scheme touted as critical in increasing pension benefits and retirement income protection for workers will begin. Speaking to the media at the Castle, Mr Mahama said with the remaining hurdles having now been cleared, the implementation would begin with the launching, which would be followed by the establishment of a National Pensions Regulatory Authority.

Vice President Mahama was hopeful that retiring public sector workers would from next year be offered a "handsome" lump sum and actual pension, thus bringing to closure incessant worker agitation over the years because of meagre pensions.

He said as a result of that situation, some workers resorted to fiddling with their date of births to accumulate more working period, thus postponing their retirement but was hopeful that the scenario would now be reversed.

Mr Mahama thanked the parties involved in the negotiations for the cohesion and unity exhibited during those trying periods and for exhibiting good faith.

He said the announcement brings to a closure, the series of meetings held with the Pension Reform Implementation Committee (PRIC), the Ghana Employers Association, the management of the Social Security and National Insurance Trust (SSNIT) and organized labour on the way forward in implementing the process.

The meetings were also attended by leadership of the Ghana Trades Union Congress (GTUC), the Ghana Association of Teachers (GNAT), the Ghana Federation of Labour (GFL), the Judicial Service Workers Association (JUSAG), the Civil Servants Association (CSA) and the National Association of Graduate Teachers.

The Vice President said the need for SSNIT to acquire new "operating software" which was one of the remaining snags holding up the process had been cleared.

Mr Thomas Bediako, Chairman of the PRIC, expressed delight that SSNIT had been able to resolve all the outstanding issues. Mr Bediako expressed gratitude to President J.E.A. Mills and Vice President Mahama for their determination to see the policy through despite being started by the previous regime. He said the implementation would enable nearly 85 per cent of Ghanaians without any form of pension scheme to be enrolled on to the programme. He said while a few issues such as appointing custodians and trustees for the fund and the need to augment the technology base of SSNIT remained, they would be sorted out during the transitional period. Mr Bediako said a temporary account is to be created with the Central Bank for the lodgement of contributions as part of the transitional agreements. Mr Kofi Asamoah, Secretary-General of GTUC, expressed delight that they have been able to resolve the problems for the implementation to begin. It would be recalled that the Vice President on July 31, 2009, held talks with organized labour and other stakeholders behind closed doors to discuss a number of issues including developing a road map for the implementation of the scheme. The new pension scheme, as enshrined in the National Pensions Law of 2008, Act 766, would involve a contributory three-tier pension system comprising two mandatory schemes and a voluntary scheme. 27 Aug. 09