• A Beginner’s Guide to Investment

    Making a choice on how to use your money can be a daunting task. This challenge is however simplified when you narrow your options down to two – spending or saving…

  • How the amendments to the Pension Law affect you

    In December 2014,  the Minister for Labor, who has oversight of the pension sector, introduced in parliament, an amendment to the pension law of 2008, Act 766. This amendment has been passed, signed by the President and gazetted…

  • The Power of the Tier 3 Tax Benefit

    Would you believe it if someone told you that you could be paid to save for the future? Well, the Pensions Act of 2008 (Act 766) does exactly that! The Pensions Act allows every Ghanaian worker to save up to 16.5% of their  income into a tier 3 personal pension scheme without paying any income taxes on the savings…

  • Exit Options Available to Provident Fund (Tier 3) Contributors

    Occupational Tier 3 Pension Schemes, or Provident Funds, are pension schemes set up under the Pension Act 2008, Act 766, which allow employees and/or employers to voluntarily contribute up to 16.5% of employees’ income tax free. Contributions into a Provident Fund are made before any tax is assessed on income, which can lead to significant tax savings for employees…


  • Next Steps in the Implementation of the New Pension Act – Implications of the NPRA Announcement of 29/10/2012

    On 29/10/2012 the National Pensions Regulatory Authority issued a public statement in which it prescribed the steps to the commencement of operations of registered tier 2 pension schemes. In this article we discuss the next steps required of employers and employees for the successful commencement of their tier 2 schemes and for full compliance to the law…

  • Why Every Ghanaian Employee Should Care About The New Pension Schemes

    The Pensions Act of 2008 has introduced two new pension tiers, to operate in conjunction with the SSNIT pension scheme. These two new tiers provide significant benefit for the Ghanaian worker. However, they introduce some additional risks.


  • For Employers—Selecting and Evaluating Trustees

    Selecting the Trustee for your mandatory (Tier 2) and voluntary (Tier 3) pension schemes is the most important decision that every employer is required to make under the Pension Act of 2008. In this article we outline the key issues that should go into this decision and give you a framework for selecting and evaluating your trustees.


  • The Case for Corporate Trustees

    In setting up a pension scheme for their employees, employers have to make two decisions. First, they need to choose an appropriate trustee structure and secondly, select the trustee type.  Regardless of which trustee structure the employer chooses, they will be obliged to select either an independent individual trustee or a corporate trustee. In this paper we propose that using a structure that involves a corporate trustee is the superior choice.


  • For Employers – What to Consider when Choosing a Structure for Your Pension Trustee

    Under the Pension Act of 2008 (“The Act”), trustees authorized by the National Pension Regulatory Authority (“NPRA”) are responsible for managing both the mandatory Tier 2 schemes and the optional Tier 3 schemes. Although the trustees manage the schemes for the benefit of employees and scheme participants, the choice of what kind of trustee structure the scheme should have, and who the trustees should be, is the responsibility of the company or employer sponsoring the pension scheme. In this paper we outline some of the key considerations that should go into this key decision.

  • The Pension Act of 2008 – Benefits and Risks for Employers and Employees

     The Pension Act of 2008 (“the Act”) established a new three-tier pension regime for the country and created a privately-managed pension sector. Building on numerous articles that have excellently described the changes introduced by the Act, this article clarifies what these changes mean for employers and employees. We discuss here the benefits provided by the introduction of the Tier 2 and Tier 3 pension schemes. We also highlight the major risks that employers and employees need to be aware of as they plan towards achieving full implementation of the Act by the end of 2010. In subsequent articles we will discuss how both employers and employees may best manage and mitigate the risks that they have assumed as a result of the Act.