| President's speech at launch of new pension scheme |
| Tuesday, 22 September 2009 06:24 |
 There is no gainsaying the fact that over the years, there has been a broader recognition of the importance of re-engineering our pension’s scheme and today, we are gathered to launch a pension’s scheme aimed at impacting meaningfully on the earnings of pensioners. We have not gotten this far by chance; it has come about as a result of hard work and significant consensus building and I congratulate all who have moved the process this far. Successive Governments have been confronted with the genuine and very legitimate concerns of public sector workers over the current low pension figures and it is expected that this new scheme will provide for a more appreciable standard of living upon retirement from service. As a nation, we have moved notches higher as regards pension’s reforms and we must applaud our efforts thus far and continue to work towards further broadening the pension’s landscape. Mr. Chairman, the main objective of the new scheme is to ensure retirement income security for Ghanaian workers not only in the formal sector, but also in the informal sector. In the main, Pension Schemes that are being operated do not work in the direction of the informal sector. Indeed, the absence of a formalized arrangement that provides retirement security for the informal sector is inconsistent with the Provisions of Article 37 (6) of the 1992 Constitution which enjoins the State to “ensure that contributory schemes are instituted and maintained that will guarantee economic security for self-employed and other citizens” Mr. Chairman, Ladies and Gentlemen, It is gratifying to note that provisions have been made in the new scheme to cater for the peculiar need of workers in the informal sector of the economy who constitute almost 85% of the nation’s workforce. This means that farmers, fisherfolk, traders, drivers, artisans and other self-employed can now participate in a pension scheme which will take care of them in their old age. The new Pensions Law (National Pensions Act, 2008-Act 766) caters for the establishment of a contributory three-tier pension scheme and a National Pensions Regulatory Authority to regulate and oversee the efficient administration of the new composite pension scheme. Transitional provisions have been made in the law for workers in existing pension schemes and pensioners. I am also glad that the new pension scheme will, among other benefits, allow workers in the future to use their lump sum pension benefits as collateral to secure mortgages to acquire personal homes. This will definitely ease the accommodation difficulties that some pensioners suffer. Pension Reforms are happening all over the world and Ghana cannot refuse to latch onto the wheel of change. Mr. Chairman, Ladies and Gentlemen, Government is therefore urging all categories of workers to take advantage of the solid opportunities associated with the new scheme. As stated earlier, the informal sector constitutes majority of the work force of the nation. The Government has therefore tasked the Implementation committee and the Board of the Regulatory Authority to undertake a comprehensive education and sensitization programme for the Informal Sector to encourage, individuals, Groups and Associations to participate in the new pension scheme for their own benefit. Mr. Chairman, once the scheme takes off, substantial savings will accrue to the nation and it is incumbent on Funds Managers to efficiently manage such funds to rake in the desired returns which will in turn support the payment of adequate sums to contributors. However, goings-on as regards the current global financial crisis must be a guiding principle for Funds Managers not to overstretch themselves. Mr. Chairman, the new pension scheme will become operational from 1st January, 2010, and it is hoped that there will be effective collaboration from all concerned for a smooth take-off as we continue to work towards building a Better Ghana. The foundation has been laid for a new and lasting consensus on pensions in Ghana and the only option left, is to build on this solid foundation. On this positive note, I formally declare the new pension scheme for Ghana duly launched. |
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