The Ghana National Association of Teachers (GNAT) has in Saturday passed a resolution to have a common Third Tier Pension Scheme.
This resolution was passed on Saturday, January 6,2018 during the 5th Quadrennial and 52nd National Delegates Conference currently ongoing at the University of Cape Coast.
According to Conference, the amount to be paid as to how much should be used for tier 3 and also who should be a member is voluntary. This means that every member of the Association is of liberty to Voluntarily contribute to the third tier scheme as well as any amount of interest to such member.
Understanding the 3-Tier Pension Scheme:
Q1. What is the contributory 3-Tier Pension Scheme?
Ans. It is the new pension scheme established by the National Pensions Act, 2008 (Act 766) that replaces the previous SSNIT pension scheme and other parallel schemes.
Q2. How is it different from the SSNIT scheme under the PNDCL 247?
Ans. This new scheme has a 3-Tier structure with private involvement in the management and an establishment of a regulatory body instead of the previous arrangement under PNDCL 247.
Q3. What is the objective of this scheme?
Ans. The objective of the scheme is to:
Ø Provide pension benefits to ensure retirement income security for workers
Ø To ensure that any worker receives retirement and related benefits as and when due
Ø Establish a uniform set of roles, regulations and standards for the administration and payment of retirement and related benefits for workers in the public and private sector
Q4. What are the components of this contributory 3-Tier Pension Scheme?
Ans. This contributory 3-Tier pension schemes consists of:
1st-Tier – A Mandatory basic National Social Security Scheme
2nd- Tier – A mandatory fully funded and privately managed occupational pension scheme
3rd-Tier – A voluntary fully funded and privately managed provident fund and personal pension scheme.
Q5. What is the total contribution from the Employer and the employee into the 1st and 2nd Tier Mandatory schemes of the 3-Tier Pension Scheme and how is it different from the old SSNIT scheme?
Ans. The total contribution from the employer and the employee under the new scheme is 18.5% and is distributed as follows:
New Scheme (Act 766) Employer-13%
Old SSNIT Scheme (PNDCL 247))-Employer – 12.5%)
Employee – 5%