Skip to main content

Switzerland provides US$2.4 million support to Ghana’s pension reforms

Minister of State at the Presidency in charge of Financial and Allied Institutions, Mr. Fiifi Kwetey has inaugurated a five-member steering committee for the National Pension Regulatory Authority (NPRA) to oversee the implementation of a three-year capacity building agreement with the Swiss Government.
The Swiss Government has given a grant of US$2.4 million to Ghana to support the NPRA to adequately perform its role as regulator to ensuring a pension system that protects and promotes the interest of pensioners in the country.
The grant is to strengthen NPRA’s oversight and regulatory functions, build up the human capacity of its staff, and establish a functional organizational structure to support its operations.
The utilization of the grant is also to strengthen NPRA’s critical near and medium-term capacity at the individual, organizational and institutional level.
Mr. Kwetey said as a new regulator, capacity building was necessary to strengthen the organization’s human resource for the effective implementation of the pension’s reforms.
He said the pensions system could serve as a source of economic transformation and a pool for long-term funds to spur economic development.
Mr. Kwetey expressed government’s appreciation to the Swiss government for the largely technical support.
Ms. Brigitte Cuendet, Head of Cooperation, Embassy of Switzerland, said a state of the art pensions system was a cornerstone in the country’s long awaited policy on aging. 
She said as people tend to live longer, it is the ultimate goal for the NPRA to ensure security in retirement income for all Ghanaians in both formal and informal sector of the economy.
Ms. Cuendet said strong and well-regulated pension sector facilitates the development of financial markets, in particular local capital markets, through diversifying sources of funds, mobilizing long-term savings for productive purpose and broadening the investor base.
She said strengthening the capacity of the NPRA to regulate and monitor the pension sector would contribute both to the soundness of the financial system and the longer-term fiscal sustainability, which were essential framework conditions for sustainable economic growth.
Besides, she said, “the agreement provides the opportunity to share experiences between the two countries.”
The National Pension Act establishes a new three-tier pension scheme with a first mandatory basic national social security scheme; a second and third tiers that are mandatory occupational pension scheme; and a third tier voluntary pension scheme.
The second and third tiers are managed by licensed private pension providers. The new scheme is in line with international best practices and has high similarities to the Swiss pension model.
The Act establishes the Social Security and National Insurance Trust (SSNIT), Licensed Trustees, Registered Pension Fund Managers and Pension Act to represent the most significant reform in the financial sector over the last couple of years.
The NPRA plays a pivotal role in the new system but faces challenges of a still young institution given the crucial importance of a well-functioning pension system in poverty alleviation.
Members of the committee are Dr. Nii Kwaku Sowa, Chairman NPRA Board, Ms. Brigitte Cuendet, Head of Cooperation Switzerland Embassy, Mr. Laud Senanu Acting CEO NPRA, Mr. Joseph Chognuru, Head of Financial Sector Division Ministry of Finance, and Mr. Ernest Amartey Vondee of the NPRA. 
Credit: GNA


Popular posts from this blog

Deputy AG sues Facebooker over 'malicious' Ameri deal

The Deputy Attorney-General and Member of Parliament for Bolgatanga East, Mr Dominic Ayine has filed a defamation suit at an Accra High Court against a Facebook commentator, Evron Hughes.
In Mr Ayine’s statement of claim, sighted by Graphic Online, he accused Mr Hughes of defaming him in a post he authored and published on Facebook on December 21, 2015, titled “RE: AMERI TRANSACTION”.
According to the Deputy A-G, the “false and malicious” post has provoked “public disaffection” against him and exposed him to public ridicule and contempt.
Describing Mr Hughes as a “self-styled social media blogger and a social commentator”, Mr Ayine said the Facebook post had brought his hard-won reputation “as a respected politician, teacher and lawyer” into “hatred, ridicule, odium, discredit, contempt, opprobrium and reproach”.
The Deputy A-G said the “defamatory words” were authored with the sole intent to reduce him in the estimation of all right thinking Ghanaians, adding that he had received numerou…

PIAC told to go to court to enforce recommendations

By: Fred Yaw Sarpong

The Public Interest and Accountability Committee (PIAC), the mandated body to monitor the use of Ghana’s oil revenues has been asked to go to court to seek strict compliance of the laws covering accountability of oil funds in the country.

According to Dr. Steve Manteaw, the Campaign Coordinator for ISODEC and a member of the PIAC , it’s time for PIAC as a body to consider going to court to compel institutions responsible for managing Ghana’s oil revenue to answers some questions concerning the expenditure of oil funds.

He pointed out that there are several recommendations made by the PIAC in its past reports on management of petroleum revenues, and a lot of these recommendations has received no positive response from the institutions concerned.

He disclosed this to the Daily Express at a three-day workshop on Interrogating the 2016 Semi Annual PIAC Report at Koforidua in the Eastern Region.

The workshop was organized by the Institute of Financ…

BoG shuts down two financial institutions

The Bank of Ghana has closed down two financial institutions in the country. This was after the central bank investigation revealed that the two companies were operating without approval.

The two companies were Agro Development Fund Services Limited (ADFSL) and Hebron Financial Investment Limited (HFIL).

The Daily Express gathered that the ADFSL was asked to stop operating after the central bank realized the institution had not been licensed to take deposit from the public.

A statement from BoG said the ADFSL continued to operate despite the orders from the Bank of Ghana. It however closed down ADFSL’s operation until further notice.

The Bank of Ghana said that the ADFSL is located at Asufufu, opposite the Sunyani Traditional Council in the Brong Ahafo region.

“The decision to close down ADFSL is in furtherance of section 20(2) (g) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930). Bank of Ghana has investigated ADFSL thoroughly and has concluded that its a…