The main objective of the three-tier pension scheme is to provide pension benefits that will ensure retirement income security for every worker, whether in the formal or informal sector.
The Pension reform establish rules, regulations and standards for administration and payment of pension benefits to ensure that all workers have access to pension products and receive pension benefits as and when due.
Research shows that, in Ghana, 85% of total labour force, are in the Informal sector. (NPRA Fact Sheets). The ILO Report 2014 shows, only 1 out of 13 elderly people receives pension and only 1 out of 7 people in the labor force is covered under SSNIT. These highlighted concerns have created an unserved need that has to be met.
United Pension Trustees in collaboration with Fidelity Bank, Bora Capital Advisors & MTN Mobile Money therefore wish to introduce an innovative Pension Product into the market dubbed MY OWN PENSION, with the sole purpose to serve the Informal Sector.
PRODUCT DESCRIPTION: MY OWN PENSION SCHEME
- It is a voluntary retirement pension plan which provides secured retirement income to individuals mostly in the informal sector.
- Registration and payment are enabled through Mobile Money for easy accessibility and settlement.
- Scheme is open to all individuals above 15 years old, workers in the formal and informal sectors.
- It seeks to improve the quality of life for as many people as possible by enabling them to save flexible amounts of money regularly towards their pension through their Mobile Phones.
Investment Sub Account (50%)
- Can be assessed as a lump sum.
- Serves as collateral when accessing a personal loan.
- 50% of the contributions in the savings account can be assessed anytime
- withdrawals before 1 year accrue NO interest on contributions
Pension / Retirement Sub (50%) Account
- To be assessed after contributing for a minimum of 5 years
- To be accessed as a lump sum at the retirement age of 55 or 60 years, OR
- When declared medically incapable of enduring work, OR
- On the death of the contributor (by surviving beneficiaries),
- To purchase an annuity for monthly or quarterly pensions at retirement.
- Can be assigned as collateral for home loan.
- Retirement Income Security
- Affordability in contribution payment
- Flexible Payment Frequencies
- Unscheduled Payments
- Improved Customer Service
Membership is open to all individuals, workers in the formal and informal sectors and is particularly apt for the:
- Self Employed (including spare parts dealers, shop owners, Mechanics, etc.);
- Artistes (Entertainment industry);
- Sports men and women;
- Market Women and Men;
- Casual / Contract workers;
- Taxi and Trotro Operators and mates;
- Government and Non-Government workers
- In pursuant with the Laws on KYC gathering, Customer consent would be sought during the enrolment process, allowing the Trustee access to their basic personal information on MTN Mobile Money.
- Customers would also have to key in some basic personal information during the enrolment to ensure that the Trustee collects the basic KYC requirements as mandated by the National Pension Regulatory Authority.
Periodic automatic updates on clients’ fund balance and investment performance would be sent via the under listed means;
- 1. SMS
- 2. Email statements
The Trustee (United Pension Trustees Ltd) has appointed very credible and experienced independent service providers as mandated by law to provide their expertise and knowledge on this Scheme.
They are as follows:
Scheme Administrator – United Pension Trustees
Custodian – Fidelity Custody
Fund Manager – Bora Capital Investors