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Dagbanu: Effect of 3-Tier Pension Scheme

Time with NPRA  Final discussion Tuesday edition on Radio XYZ BreakFast show hosted by Kwaku Vander-Pallen on education on the 3- Tier pension Scheme.Radio 33

According to Mr. Emmanuel Dagbanu, Corperate Affairs Manager, he said, Unification of pension is the second league of the scheme and it is bringing all the parallel pensions that were running in the country before the implementation of the two tier pension scheme under the three tier pension scheme.

Some schemes are funded, that is members contribute towards their retirement and SSNIT scheme is an example.

Unfunded scheme means members of such people do not contribute to their retirement meaning the tax payers money is used to pay their salary.

Majority of public sector workers find themselves under the non- contributing scheme.

He said those who do not contribute to their retirement get a higher sum far than those who contribute to the scheme was seen as inequity and the government put everyone under the three tier scheme.

Mr. Emmanuel Dagbanu described the capitative  as unsustainable because members do not contribute towards their retirement and everything is charged on the consolidated fund which means a time will come there will be no money to pay workers when they retire and that led to the establishment of presidential commission on pensions in 2004 to look at all this parallel schemes and how they operate and recommend a sustainable pension for the Ghanaian worker that will pay equitable pensions scheme to all pensioners.

He then said the main goal of the reform is to ensure retirement income security and also to eradicate the inequity in the payment of pension benefit.

Source: radioxyzonline.com

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