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....

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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…...

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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…...

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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…...

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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....

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Employer Obligations and Responsibilities under the New Pensions Act

In our previous publications we outlined the employer’s primary responsibility under the Pensions Act (“The Act”); a fiduciary responsibility requiring them to appoint capable trustees to ensure the proper management and administration of employee pension schemes. In addition to the initial requirements to sponsor a pension scheme for your employees and appoint trustees, you are also expected to perform certain functions, and provide certain services to your employees on an on-going basis. It is important that you do not lose sight of these employer obligations as non-compliance attracts penalties from the Pension Regulator....

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Mitigating the Employer’s Fiduciary Risk in Tier 2 and Tier 3 Defined Contribution Plans

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....

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