FOURTH REPUBLIC
NATIONAL
PENSIONS ACT 2008
ARRANGEMENT OF SECTIONS
Section
PART
ONE-ESTABLISHMENT OF CONTRIBUTORY THREE-TIER PENSION
SCHEME AND NATIONAL
PENSIONS REGULATORY AUTHORITY
Contributory three-tier pension scheme
1.
Establishment of contributory three-tier pension
scheme
2.
Object of the scheme
3.
Contributions to the scheme
4.
Management of the schemes
National Pensions Regulatory Authority
5.
Establishment of the Authority
6.
Object of the Authority
7.
Functions of the Authority
8.
Governing body of the Authority
9.
Tenure of office of members
10.
Meetings of the Board
11.
Disclosure of interest
12 Establishment of committees
13.
Allowances
14.
Regional and district offices of the Authority
15.
Minisrcn.il dii ectives
Administrative and financial provisions
16 Chief Executive Officer
17 Functions of the Chief Executive Officer
18 Deputy Chief Executive Officer
19 Functions of Deputy Chief Executive Officer
20 Appointment of Solicitor Secretary
21 Appointment of other staff
22 funds of the Authority
23 Accounts and audit
24 Annual report and other reports
Miscellaneous
provisions to Part One
1
25.
Engagement
of consultants
and experts
26.
Prohibition
of unauthorised disclosure of confidential
information
27.
Power
to inspect business premises
28.
Budget
and
work programme
29.
Regulations
PART
Two-BASIC
NATIONAL SOCIAL
SECURITY
SCHEME
Establishment
of the
Trust
30.
Basic national
social security scheme
31.
Exemption
from
the basic national social security scheme
32.
Establishment
of the Trust
33.
Object
of the Trust
34.
Functions
of the Trust
35.
Governing
body of the Trust
36.
Knowledge
and understanding of Board of Trustees
37.
Tenure
of office of members
38.
Meetings
of the Board of Trustees
39.
Disclosure
of interest
40.
Establishment
of committees
41.
Allowances
42.
Regional
and district offices of the Trust
Administrative and financial
provisions
-43.
Director-General
of the Trust
44.
Functions
of the Directors-General
45.
Deputy
Director-General
46.
Appointment
of other staff
47.
Secretary
to the Board of Trusteees
48.
Internal
Auditor
49.
Actuary
of the Trust
50.
Accounts
and Audit
51.
Annual
report and other report
52.
Regulation
of the Trust
53.
Actuarial
valuation reports
54.
Exemption
from
taxes
55.
Administrative
expenses
56.
Permitted
expenditure
from Scheme Funds
57.
Account
of members
|
58. |
Application of social security scheme |
|
|
59. |
Entry age |
|
|
60. |
Age Exemption |
|
|
6l. |
Social security number |
|
|
62. |
Existing schemes |
|
|
|
Contributions |
|
|
63. |
Mandatory contributions |
|
|
64. |
Penalty for non-payment of contributions |
|
|
65. |
Multiple-employer |
|
|
66. |
Employer not to reduce remuneration |
|
|
|
Investments |
|
|
67. |
Investment policy |
|
|
68. |
Permitted investments |
|
|
69. |
External investments |
|
|
|
Benefits and qualifying conditions |
|
|
70. |
Superannuation pension |
|
|
7l. |
Invalidity pension |
|
|
72. |
Lump sum payment |
|
|
73. |
Survivor's lump sum benefits |
|
|
74. |
Other benefits |
|
|
75. |
Harzardous employment benefit |
|
|
76. |
Qualifying conditions for pension |
|
|
77. |
Formula for computation of pensions |
|
|
78. |
Formula for survivors benefit computation |
|
|
79. |
Formula for invalidity computation |
|
|
80. |
Periodic review of pensions |
|
|
8l. |
Nomination for dependants to receive
benefits |
|
|
82. |
Reciprocal agreement |
|
|
|
Legal proceedings |
|
|
83. |
Offences |
|
|
84. |
Institution of criminal proceedings |
|
|
85. |
Offences by body of persons |
|
|
|
|
|
86.Civil
proceedings
87.Priority
for payment of contributions
88.Protection
against attachment
89.Exemption
from Tax
90.Protection
for acts done in good faith
Miscellaneous provisions
91.Functions
of Trust Inspectors
92.Electronic
recording and filling and transfer of documents
93.Regulation
94.Transitional
provisions
PART THREE-OCCUPATIONAL PENSION SCHEMES, PROVIDENT
FUND AND PERSONAL PENSION SCHEMES AND MANAGEMENT OF
THE SCHEMES
Occupational pension schemes
95.Occupational
pension scheme
96.Mandatory
contributions
97.Existing
schemes
98.Vesting
99.Preservation
of accrued benefits derived from contributions
100.Portability
of accrued benefits
10 1. Qualifying conditions for withdrawal of
accrued benefits
102.Protection
of accrued benefits
103.Assignment
of benefits
104.Exemption
from tax
105.Records
in respect of contributions
Provident fund and personal pension schemes
106.Provident
fund and personal pension scheme
107.Application
108.Voluntary
contributions
109.Self-employed
persons
1l0. Qualifying conditions for withdrawal of accrued
benefits
Ill. Retirement benefits
112.Tax
reliefs
113.Creation
of encumbrance in respect of contribution
114.Assignment
of benefits
115.Duty
of employer in respect of personal pension scheme
116.Monitoring
of provident fund contributions
117.Life
insurers carrying on pension and provident fund
business
118.Winding-up
Trustees
119.Independent
director and independent trustee
120.Trustees
121.Functions
of trustees
122.Application
for a licence
123.Conditions
for licence as a trustee
124.Consideration
of application
125.Approval
of application
126.Power
to impose conditions
127.Representation
to the Board
128.Waiver
of conditions
129.Application
for registration of occupational pension scheme as
employer sponsored scheme or master trust scheme
130.Contents
of application
131.Consideration
of application
132.Refusal
of application
133.Certificate
of registration
134.Waiver
of condition
135.Application
for registration as personal pension scheme
136.Contents
of application
13 7. Consideration of application
138.Refusal
of application
139.Certificate
of registration
140.Power
to impose, amend or waive conditions
141.Requirement
for member-nominated trustees
142.Requirement
for member-nominated directors of corporate trustees
143.Knowledge
and understanding of individual trustees
144.Knowledge
and understanding of corporate trustees
145.Fees
of trustees
Pension fund managers
146.Pension
fund managers
147.Functions
of pension fund managers
148.Requirements
for registration as a pension fund manager
149.Application
for registration
150.Grant
of application
151.Refusal
to register
152.Dispute
settlement
153.Investment
policy
154.Fees
of pension fund manager
Pension fund custodians
155.Pension
fund custodians
156.Functions
of custodians
157.Requirement
for registration as custodian
158.Conditions
for registration
159.Application
for registration
160.Dispute
settlement
161.Fees
of custodians
162.Permitted
expenditure from scheme funds
163.Maximum
administrative charges
164.Revocation
of licence or cancellation of registration
165.Publication
of list of trustees, pension fund managers and
custodians
166.Proper
books of accounts and audit
167.Annual
reports
168.Reporting
obligations of auditors, trustees, pension fund
managers and custodians
169.Specific
obligation of the custodian
170.Reports
on frauds, forgeries, theft or other acts of
dishonesty
1 71. Notification of dismissed staff
171.Prohibited
employment
172.Penalty
for non-compliance
173.Prohibited
transactions
Investment of Pension Funds
175.Investment
of pension fund
176.Permitted
investments
177.External
investments
178.Restriction
on investments
179.Restriction
on sale, purchase or disposal of pension fund assets
180.Additional
restrictions on investment
181.Penalty
for non-compliance
PART FOUR-GENERAL PROVISIONS
Supervision and examination
182.Supervision
and examination
183.Appointment
of examiners
184.Power
of examiners
185.Reports
of the Board
186.Power
of the Board to order a special examination
187.Power
of the Board to gather information
188.Search
warrant
Disclosure of information
189.Privileged
document and information
190.Supply
of information and document to foreign regulatory
authorities
191.Publishing
of reports
192.Register
of schemes
193.Inspection
of registers and information
194.Electronic
filing of documents
Offences, penalties and enforcement powers
Misappropriation of pension funds
195.Offences
relating to fraud
196.Power
of the Board to apply additional sanctions
197.Offence
by body corporate
198.Penalty
for refusing to give information
199.General
penalty
200.Order
to comply
Dispute resolution
202.Resolution
of disputes
203.Aggrieved
persons - dispute settlement
204.Effect
of settlement
205.Pensions
adjudication committee
206.General
indemnity
Miscellaneous provisions
207.Regulations
208.Operating
guidelines and codes of practice
209.Exemption
of pension funds from attachment and liquidation
process
210.Act
592 amended
211.Interpretation
212.Repeals
and savings
Transitional provisions
213.Enactments
applicable for four years
214.Payment
of pension benefits under the Cap 30 scheme
215.Death
of exempt officers
216.Option
for public servants under Cap 30 and other related
scheme
217.Decentralisation
of public sector pension management
218.Temporary
Pension Fund account.
219.Accrued
retirement benefits rights
220.Enactments
inconsistent with this Act
221.Directives
to Pension Reform Implementation Committee by
Minister
SCHEDULE
Act 766
ACT
OF THE PARLIAMENT OF THE REPUBLIC OF GHANA ENTITLED
NATIONAL PENSIONS ACT, 2008
AN ACT to provide for pension reform in the country
by the introduction of a contributory three-tier
pension scheme; the establishment of a National
Pensions Regulatory Authority to oversee the
administration and management of registered pension
schemes and trustees of registered schemes, the
establishment of a Social Security
and National Insurance Trust to manage the basic
national social security scheme to cater for the
first tier of the contributory three- tier scheme,
and to provide for related matters.
DATE OF ASSENT: 4TH DECEMBER 2008
ENACTED by the President and Parliament:
PART ONE-ESTABLISHMENT OF CONTRIBUTORY THREE-TIER
PENSION SCHEME AND NATIONAL PENSIONS REGULATORY
AUTHORITY
Contributory three-tier pension scheme
Establishment of contributory three-tier pension
scheme
1.
There is established by this Act, a contributory
three-tier pension scheme consisting of
(a)
a mandatory basic national social security scheme;
(b)
a mandatory fully funded and privately managed
occupational pension scheme, and
(c)
a voluntary fully funded and privately managed
provident fund and personal pension scheme.
Object of the scheme
2. The object of the scheme is to
(a)
provide pension benefits to ensure retirement income
security for workers,
(b)
ensure that every worker receives retirement and
related benefits as and when due, and
(c)
establish a uniform set of rules, regulations and
standards for the administration and payment of
retirement and related benefits for workers in the
public and the private sector.
Contributions to the Scheme
3. (l) An employer of an establishment shall deduct
from the salary of every worker in the establishment
immediately at the end of the month, a worker's
contribution of an amount equal to five and half per
centum of the worker's salary for the period,
irrespective of whether or not the salary is
actually paid to the worker.
(2) An employer of an establishment shall pay for
each month in respect of 'each worker, an employer's
contribution of an amount equal to thirteen per
centum of the worker's salary during the month.
(3) Out of the total contribution of eighteen and a
half per centum an employer shall within fourteen
days from the end of each month transfer the
following remittances to the mandatory schemes on
behalf of each worker
(a)
thirteen and half per centum to the first tier
mandatory basic national social security scheme; and
(b)
five per centum to the second tier mandatory
occupational pension scheme.
(4) The minimum contribution is eighteen and half
per centum of the approved monthly equivalent of the
national daily minimum wage.
(5) Despite any agreement or understanding to the
contrary, an employer is not entitled to deduct
(a)
or otherwise recover the employer's own contribution
from the worker's salary; or
(b)
the worker's contribution for an earlier
contribution period from the salary in respect of a
later period.
(6) An employer is entitled to make deductions under
subsection (5) (b) if
(a)
the failure to make the deduction was due to a false
declaration made in writing by the worker at the
time of employment; or
(b)
the failure to deduct the contribution was the
result of an accidental mistake or a clerical error
in which case the deductions shall be made according
to the written
instructions of a designated officer of the National
Pensions Regulatory Authority set up under section 5
of this Act.
(7) Where an employer deducts a contribution from
the salary of a worker, the contribution shall be
held by the employer in trust for the purpose of
this Act until it is remitted to the relevant
schemes.
(8) Subject to guidelines that may be issued by the
Board, any person who is not covered under the first
or second tier may make voluntary contributions
under the third tier.
(9) A person to whom the first and second tiers
apply may in addition to the total contributions
being made by the employee and the employer, make
voluntary contributions to a scheme under the third
tier of the Scheme.
(l0) An employer who fails to remit total
contributions within the time stipulated in
subsection (3) commits an offence and is liable on
summary conviction to a fine of two thousand penalty
units or to a term of imprisonment for two years or
to both.
Management of the schemes
4.
(l) The basic national social security scheme shall
operate under the Trust established under section 32
of this Act.
(2) The occupational pension scheme, provident fund
scheme, personal pension scheme and other privately
managed pension schemes shall be managed by trustees
approved by the Board.
NATIONAL PENSIONS REGULATORY AUTHORITY
Establishment of the Authority
5.
(1) There is established by this Act a body to be
known as the National Pensions Regulatory Authority.
(2) The Authority is a body corporate with perpetual
succession and a common seal and may sue and be sued
in its corporate name.
(3) The Authority may for the performance of its
functions acquire and hold movable or immovable
property and may enter into a contract or any other
transaction.
(4) Where there is hindrance to the acquisition of
property, the property may be acquired for the
Authority under the State Property and Contracts Act
1960 (C.A. 6) or the State Lands Act 1962 (Act 125)
and the costs shall be borne by the Authority.
Object
of the
Authority
6.
The object of the Authority is to regulate and
monitor the operation of the Scheme and ensure the
effective administration of pensions in the country.
Functions of the Authority
7. To achieve its object the Authority shall:
(a)
be responsible for ensuring compliance with this
Act;
(b)
register occupational pension schemes, provident
funds and personal pension schemes;
(c)
issue guidelines for the investment of pension
funds;
(d)
approve, regulate and monitor trustees, pension fund
managers, custodians and other institutions that
deal with pensions as the Authority may determine;
(e)
establish standards, rules and guidelines for the
management of pension funds under this Act;
(f)
regulate the affairs and activities of approved
trustees and ensure that the trustees administer the
registered schemes;
(g)
regulate and monitor the implementation of the Basic
National Social Security Scheme;
(h)
carry-out research and ensure the maintenance of a
national data bank on pension matters;
(i)
sensitise the public on matters related to the
various pension schemes;
(j)
receive and investigate complaints of impropriety in
respect of the management of pension schemes;
(k)
promote and encourage the development of the pension
scheme industry in the country;
(I)
receive, and investigate grievances from pensioners
and provide for redress;
(m)advise government on the general welfare of
pensioners;
(n)
advise government on the overall policy on pensions
in the country;
(0)
request information from any employer, trustee,
pension fund manager or custodian, any other person
or institution on matters related to retirement
benefit;
(p)
charge and collect fees as the Authority may
determine;
(q)
impose administrative sanctions or fines; and
(r)
perform any other functions that are ancillary to
the object of the Authority.
Governing body of the Authority
8.
(1) The governing body of the Authority is a Board
consisting of
(a)
a chairperson,
(b)
the Chief Executive of the Authority,
(c)
one person nominated by the President,
(d)
a representative of the Ministry responsible for
pensions, not below the rank of a director,
(e)
a representative of the Bank of Ghana,
(f)
a representative of the Securities and Exchange
Commission,
(g)
two representatives of Organised Labour,
(h)
one representative of the Ghana Employers'
Association,
(z)
one representative of the National Pensioners
Association,
and
(j)
a representative of the Attorney-General and
Minister for Justice not below the rank of a
Principal State Attorney.
(2) The chairperson and the other members of the
Board shall be appointed by the President in
accordance with article 70 of the Constitution.
(3) The President may, in appointing the members of
the Board
take into account persons with experience in the
following:
(i) finance and investment,
(ii) law,
(iii) accounting,
(iv) pension management or actuarial science,
(v) business administration, or
(vi) other related areas of expertise.
(4) The Board shall ensure the proper and effective
performance of the functions of the Authority.
'
Tenure of office of members
9. (1) A member of the Board shall hold office for a
period not exceeding three years and is eligible for
re-appointment but a member shall not be appointed
for more than two terms.
(2) Subsection (1) does not apply to the Chief
Executive.
(3) A member of the Board may at any time resign
from office in writing addressed to the President
through the Minister.
(4) A member of the Board, who is absent from three
consecutive meetings of the Board without reasonable
excuse ceases to be a member of the Board.
(5) The President may by letter addressed to a
member revoke the appointment of that member.
(6) Where a member of the Board is, for a sufficient
reason, unable to act as a member, the Minister
shall determine whether the inability would result
in declaration of a vacancy.
(7) Where there is a vacancy
(a)
under subsection (2), (3) or (4) or section 11 (2),
or
(b)
as a result of a declaration under subsection (6) or
(c)
by reason of the death of a member
the Minister shall notify the President of the
vacancy and the President shall appoint a person to
fill the vacancy.
Meetings of the Board
10.
(1) .The Board shall meet at least once every three
months for the dispatch of business at the times and
in the places determined by the chairperson.
(2) The chairperson shall at the request in writing
of not less than one-third of the membership of the
Board convene an extraordinary meeting of the Board
at the place and time determined by the chair-
person.
(3) The quorum at a meeting of the Board is seven
members of the Board or a greater number determined
by the Board in respect of an important matter.
(4) The chairperson shall preside at meetings of the
Board and in the absence of the chairperson, a
member of the Board elected by the members present
from among their number shall preside.
(5) Matters before the Board shall be decided by a
majority of the members present and voting and in
the event of an equality of votes, the person
presiding shall have a casting vote.
(6) The Board may co-opt a person to attend a Board
meeting but that person shall not have a voting
right.
(7) The proceedings of the Board shall not be
invalidated by reason of a vacancy among the members
or defect in the appointment or qualification of a
member.
(8) Subject to this section, the Board may determine
the procedure for its meetings.
Disclosure of interest
11.
(1) A member of the Board who has an interest in a
matter for consideration by the Board shall disclose
in writing the nature of that interest and is
disqualified from participating in the deliberations
of the Board in respect of that matter.
(2) A member who contravenes subsection (1) ceases
to be a member.
Establishment of committees
12.
(1) The Board may establish committees consisting of
members of the Board or non-members or both to
perform a function.
(2) A committee of the Board may be chaired by a
member of the Board.
(3) Section 11 applies to members of
committees of the Board.
Allowances
13.
Members of the Board and members of a committee of
the Board shall be paid the allowances approved by
the Minister in consultation with the Minister
responsible for Finance.
Regional and district offices of the Authority
14.
(1) The Board may establish regional and district
offices of the Authority in each regional capital
and in the district determined by the Board.
(2) A regional or district office of the Authority
shall perform the functions of the Authority in the
region or district that the Board may direct.
Ministerial directives
15.
The Minister may give directives to the Board on
matters of policy.
Administrative and financial provisions
Chief Executive Officer
16.
(1) The President shall, in accordance with article
195 of the Constitution, appoint a person with
expertise in pensions, actuarial science, insurance
or related field as the Chief Executive Officer of
the Authority.
(2) The Chief Executive Officer shall hold office on
the terms and conditions specified in the letter of
appointment.
Functions of the Chief Executive Officer
17.
(1) The Chief Executive Officer is responsible for
the day-to-day administration of the affairs of the
Authority and is answerable to the Board in the
performance of functions under this Act.
(2) The Chief Executive Officer shall perform any
other functions determined by the Board.
(3) The Chief Executive Officer may delegate a
function to an officer of the Authority but shall
not be relieved from the ultimate responsibility for
the performance of the delegated function.
Deputy Chief Executive Officer
18.
(1) The President shall in accordance with article
195 of the Constitution appoint a person with the
relevant academic and professional qualifications
and experience in pension matters, insurance,
actuarial science or other related fields as the
Deputy Chief Executive Officer of the Authority.
(2) The Deputy Chief Executive Officer shall hold
office on the terms and conditions specified in the
letter of appointment .
.
Functions of Deputy Chief Executive Officer
19.
The Deputy Chief Executive Officer shall
(a)
perform functions that the Chief Executive Officer
may assign, and
(b)
act in the absence of the Chief Executive Officer.
Appointment of Solicitor Secretary
20.
(1) The President shall in accordance with article
195 of the Constitution appoint a Solicitor
Secretary for the Authority.
(2) The Solicitor Secretary shall be
(a)
responsible to the Chief Executive,
(b)
the secretary to the Board,
(c)
in-charge of the Legal department, and
(d)
perform other functions that may be assigned to the
Solicitor Secretary by the Board or the Chief
Executive.
Appointment of other staff
21.
(1) The President shall in accordance with article
195 of the Constitution appoint other staff of the
Authority that are necessary for the proper and
effective performance
(2) Other public officers may be transferred or
seconded to the
Authority or may otherwise give assistance to it.
(3) The Authority may engage the services of
advisers on the recommendations of the Chief
Executive Officer.
Funds of the Authority
22.
The funds of the Authority include
(a)
moneys provided by Parliament,
(b)
fines, fees, commissions and income accruing to the
Board in the performance of its functions,
(c)
donations, grants and gifts, and
(d)
any other moneys that are approved by the Minister
responsible for Finance.
Accounts and audit
23.
(1) The Board shall keep books of account and proper
records in relation to them in the form approved by
the Auditor-General.
(2) The Board shall submit the accounts of the
Authority to the Auditor-General for audit within
three months after the end of the financial year.
(3) The Auditor-General shall, not later than three
months after the receipt of the accounts, audit the
accounts and forward a copy of the audit report to
the Minister.
(4) The Internal Audit Agency Act, 2003 (Act 658)
applies to this Act.
(5) The financial year of the Authority is the same
as the financial year of the Government.
Annual report and other reports
24.
(1) The Board shall within one month after the
receipt of the audit report, submit an annual report
to the Minister covering the activities and the
operations of the Authority for the year to which
the report relates.
(2) The annual report shall include the report of
the Auditor-General.
(3) The Minister shall, within one month after the
receipt of the annual report, submit the report to
Parliament with a statement that the Minister
considers necessary.
(4) The Board shall also submit to the Minister any
other reports which the Minister may require in
writing.
Miscellaneous provisions
Engagement of consultants and experts
25.
The Board may engage the services of consultants or
other experts on terms and conditions determined by
the Board.
Prohibition of unauthorised disclosure of
confidential information
26.
(1) A person in the discharge of duties under this
Act shall not disclose confidential information
obtained by that person unless authorised by the
Board to do so.
(2) A person who contravenes subsection (1) commits
an offence and is liable on summary conviction to a
fine of two hundred and fifty penalty units or to a
term of imprisonment of not more than one year or to
both.
Power to inspect business premises
27.
(1) A person authorised by the Board may, for the
purpose of ensuring compliance with the provisions
of this Act
(a)
between the hours of 8.00 a.m. and 5.00 p.m. enter
any premises in which an employer or self-employed
person operates business for the purpose of
inspection and
examination;
(b)
require a person to produce a record required to be
kept under this Act in that person's possession and
inspect and make copies where necessary;
(c)
make inquiries to ascertain whether the requirements
of this Act are being complied with by employees and
self-employed persons;
(d)
seize anything which appears to be evidence of an
offence against this Act; and
(e)
exercise other powers that may be conferred by
Regulations.
(2) Where premises are private dwellings, an
authorised person may enter those premises under a
warrant issued by a Court of competent jurisdiction.
Budget and work programme
28. The Chief Executive Officer shall not later than
six months before the commencement of each financial
year prepare and submit to the Board for approval
(a)
a work programme containing a general description of
the work and activities that the Board plans to
undertake, and
(b)
estimates of the Authority's expected expenditure
and income.
Regulations
29.
The Minister in consultation with the Board, may
make Regulations for the effective implementation of
this Part.
PART Two-BASIC NATIONAL SOCIAL SECURITY SCHEME
Establishment of the Trust
Basic national social security scheme
30.
(1) The basic national social security scheme shall
operate under the Trust established under section 32
of this Act.
(2) Each worker of an establishment or an
institution shall pay a monthly contribution to the
social security scheme.
(3) Self-employed persons who opt to join the scheme
shall pay a monthly contribution to the social
security scheme.
Exemption from the basic national social security
scheme
31.
Section 30 does not apply to officers and men of the
Ghana Armed Forces and any other person who is
expressly exempted by law.
Establishment of the Trost
32.
(1) There is established by this Act a body known as
the Social Security and National Insurance Trust.
(2) The Trust is a body corporate with perpetual
succession and a common seal and may sue and be sued
in its corporate name.
(3) The Trust may for the performance of its
functions acquire and hold movable or immovable
property, and may enter into a contract or any other
transaction.
(4) Where there is hindrance to the acquisition of
property, the property may be acquired for the Trust
under the State Property and Contracts Act, 1960
(C.A. 6) or under the State Land Act 1962, (Act 125)
the cost shall be borne by the Trust.
Object of the Trust
33.
The object of the Trust is to operate the basic
national social security scheme referred to as the
social security scheme and other schemes as
determined by law on the recommendations of the
National Pensions Regulatory Authority.
Functions of the Trost
34.
To achieve its object the Trust shall
(a)
operate the basic national social security pension
scheme and other schemes as may be prescribed by
law;
(b)
have a Fund into which shall be paid the
contributions and any other moneys as may be
required under this Act;
(c)
be responsible for the general administration of the
social security scheme and regulations made under
it;
(d)
ensure the provision of social protection for the
working population for various contingencies
including old age, invalidity and death;
(e)
be responsible for the administration and investment
of funds within the framework of general directives
issued by the Board of Trustees and approved by the
Authority;
(f)
collaborate with other complementary social
protection schemes in respect of specified
operational and administrative functions to achieve
efficiency, cost savings
and avoidance of duplication of functions;
(g)
have general control of the funds and investments of
the social security scheme and the management of the
Trust; and
(h)
perform any other functions that are ancillary to
the objects of the Trust.
Governing body of the Trust
35.
(1) The governing body of the Trust is a Board of
Trustees consisting of
(a)
a chairperson,
(b)
two persons nominated by the President, at least one
of
whom is a woman,
(c)
two representatives of Employers' Associations
(d)
four representatives of Organised Labour,
(e)
one representative of National Pensioners'
Association,
(f)
one representative of the Ministry responsible for
Finance not below the rank of a Director,
(g)
one representative of the Security Services who is
not a member of the Ghana Armed Forces, and
(h)
the Director-General of the Trust.
(2) The members of the Board of Trustees shall be
appointed by the President in accordance with
article 70 of the Constitution.
(3) The Board of Trustees shall ensure the proper
performance of the functions of the Trust.
Knowledge and Understanding of Board of Trustees
36.
(1) A member of the Board of Trustees must, in
relation to the social security scheme, have
knowledge and understanding of
(a)
the social security law and any regulations made
under it;
(b)
any statement of investment policy for the time
being maintained under section 67 of this Act;
(c)
any other policy document for the time being adopted
by the Board of Trustees relating to the
administration of the scheme generally.
(2) The degree of knowledge and understanding
required of the Board of Trustees is that necessary
to enable the individual to perform the functions as
a member of the Board of Trustees of the social
security scheme.
(3) The Trust shall ensure that a member of the
Board of Trustees acquires the relevant knowledge
through appropriate programmes relating to pensions
and trusts.
Tenure of office of members
37.
(1) A member of the Board of Trustees shall hold
office for a period not exceeding three years and is
eligible for re-appointment but a member shall not
be appointed for more than two terms in succession.
(2) Subsection (1) does not apply to the
Director-General of the Trust.
(3) A member of the Board of Trustees may at any
time resign from office in writing addressed to the
President through the Minister.
(4) A member of the Board of Trustees who is absent
from three consecutive meetings of the Board without
sufficient reason ceases to be a member of the Board
of Trustees.
(5) The President may by letter addressed to a
member revoke the appointment of that member.
(6) Where a member of the Board of Trustees is, for
a sufficient reason, unable to act as a member, the
Minister shall determine whether the inability would
result in the declaration of a vacancy.
(7) Where there is a vacancy
(a)
under subsection (2), (3) or (4) or section 39 (2),
or
(b)
as a result of a declaration under subsection (6),
or
(c)
by reason of the death of a member,
the Minister on the advice of the Board of Trustees
shall notify the President of the vacancy and the
President shall appoint a person to fill the
vacancy.
Meetings of the Board of Trustees
38.
(1) The Board of Trustees shall meet at least once
every three months for the despatch of business at
the times and in the places determined by the
chairperson.
(2) The chairperson shall at the request in writing
of not less than one-third of the membership of the
Board of Trustees convene an extraordinary meeting
of the board of trustees at the place and time
deter- mined by the chairperson.
(3) The quorum at a meeting of the Board of Trustees
is seven members including the Director-General or
any other person acting as Director -General.
(4) The chairperson shall preside at meetings of the
Board of Trustees and in the absence of the
chairperson, a member of the Board of Trustees
elected by the members present from among their
number shall preside.
(5) Matters before the Board of Trustees shall be
decided by a majority of the members present and
voting and in the event of an equality of votes, the
person presiding shall have a casting vote.
(6) The Board of Trustees may co-opt a person to
attend a Board of Trustees meeting but that co-opted
person shall not vote on a matter for decision at
the meeting.
(7) The proceedings of the Board of Trustees shall
not be invalidated by reason of a vacancy among the
members or a defect in the appointment or
qualification of a member.
(8) Subject to this section, the Board of Trustees
may determine the procedure for the Board of
Trustee's meetings.
Disclosure of interest
39.
(1) A member of the Board of Trustees who has an
interest in a matter for consideration by the Board
of Trustees shall disclose in writing the nature of
that interest and is disqualified from participating
in the deliberations of the Board of Trustees in
respect of that matter.
(2) A member who contravenes subsection (1) ceases
to be a member.
Establishment of committees
40.
(1) The Board of Trustees may establish committees
consisting of members of the Board of Trustees or
non-members or both to perform a function.
(2) A committee of the Board of Trustees may be
chaired by a member of the Board of Trustees.
(3) Section 39 applies to members of committees of
the Board of Trustees.
Allowances
41.
Members of the Board of Trustees and members of a
committee of the Board of Trustees shall be paid
allowances approved by the Minister in consultation
with the Minister responsible for Finance.
Regional and district offices of the Trust
42. (1) The Board of Trustees may establish regional
and district offices of the Trust in each regional
capital and in the districts as the Board of
Trustees may determine.
(2) A regional or district office of the Trust shall
perform the functions of the Trust in the region or
district that the Board of Trustees may direct.
Administrative and financial provisions
Director-General of the Trust
43.
(1) The President shall, in accordance with article
195 of the Constitution appoint a Director-General
of the Trust.
(2) The Director-General shall hold office on the
terms and conditions specified in the letter of
appointment.
Functions
of the
Director-General
44.
(1) The Director-General is responsible for the
day-to-day administration of the affairs of the
Trust and is answerable to the Board of Trustees in
the performance of the functions under this Act.
(2) The Director-General shall perform any other
functions determined by the Board of Trustees.
(3) The Director-General may delegate a function to
an officer of the Trust but shall not be relieved
from the ultimate responsibility for the performance
of the delegated function.
Deputy Directors-General
45.
(1) The President may appoint for the Trust such
Deputy Director- Generals as may be necessary.
(2) A Deputy Director-General shall hold office on
the terms and conditions specified in the letter of
appointment.
Appointment of other staff
46.
(1) The President shall in accordance with article
195 of the Constitution, appoint for the Trust other
staff necessary for the proper and effective
performance of the functions of the Trust.
(2) The Trust may engage the services of advisers on
the recommendations of the Board of Trustees.
Secretary to the Board of Trustees
47.(1)
The Board of Trustees shall have a Secretary.
(2) The Secretary shall, subject to the directions
of the Board of Trustees, arrange the business for
the Board of Trustees and be responsible for the
recording and keeping of minutes of proceedings of
the meetings of the Board of Trustees.
(3) The Secretary shall perform any other functions
that the Board of Trustees may direct or as the
Director-General may delegate.
Internal auditor
48.
(1) The Trust shall have an internal auditor who
shall be responsible to the Director-General.
(2) The Internal Auditor shall
(a)
prepare a report on the internal audit work
carried-out at intervals of three months or such
shorter period determined by the Board and submit
the report to the Board of Trustees.
(b)
make any observations in each report as appear
necessary on the compliance, operational and conduct
of the financial affairs of the Trust during the
period to which the report relates;
(c)
send a copy of each report prepared under this
section to the Director-General; and
(d)
perform other functions that the Director-General
may prescribe.
Actuary of the Trust
49.
(1) The Trust shall have an Actuary to manage the
actuarial functions of the social security scheme.
.
(2) The Actuary shall be responsible to the
Director-General.
(3) The Actuary shall
(a)
assess the social security scheme in respect of the
(i) suitability of the financial system,
(ii) adequacy of contribution rate,
(iii) long-term financial solvency of the scheme,
and
(b)
perform other functions that the Director-General
may assign.
Accounts and audit
50.
(1) The Board of Trustees shall keep books of
account and proper records in relation to them in
the form approved by the Auditor-General.
(2) The Board of Trustees shall submit the accounts
of the Trust to the Auditor-General for audit within
three months after the end of the financial year.
(3) The Auditor-General shall, not later than three
months after the receipt of the accounts, audit the
accounts and forward a copy of the audit report to
the Minister and the Board.
(4) The Internal Audit Agency Act, 2003 (Act 658)
applies to this Act.
(5) The financial year of the Trust is the same as
the financial year of the Government.
Annual report and other reports
51.
(1) The Board of Trustees shall within one month
after the receipt of the audit report, submit an
annual report to the Minister and the Authority
covering the activities and the operations of the
Trust for the year to which the report relates.
(2) The annual report shall include the report of
the Auditor-General.
(3) The Minister shall, within one month after the
receipt of the annual report, submit the report to
Parliament with a statement that the Minister
considers necessary.
(4) The Board of Trustees shall also submit to the
Minister and the Authority any other reports which
the Minister or the Authority may require in
writing.
Regulation of the Trust
52.
The Authority shall regulate the activities of the
Trust to ensure compliance with the provisions of
this Act.
Actuarial valuation reports
53.
(1) The Trust shall obtain actuarial valuations from
an external actuary
(a)
at intervals of not more than one year or, if
obtained for the intervening years, at intervals of
not more than three years, and
(b)
in other circumstances and on other occasions that
may be prescribed by the Authority.
(2) An actuarial valuation is a written report
prepared and signed by the actuary
(a)
valuing the scheme's assets and calculating its
liabilities,
(b)
on developments affecting the scheme's liabilities
since the last actuarial valuation was prepared.
(3) The effective date of an actuarial valuation is
the date by reference to which the assets are valued
and the liabilities calculated.
(4) The effective date of an actuarial report is the
date by reference to which the information in the
report is stated.
(5) The intervals referred to in subsection (1)
(a) are between effective dates of the valuation
and shall not be more than one year
(a)
after the establishment of the social security
scheme, and
(b)
after the effective date of the last actuarial
valuation, or, if more recent, the last actuarial
report.
(7) The Board of Trustees shall ensure that a
valuation report is
received by them within the prescribed period after
its effective date.
(8) A provision in this section shall not affect any
power or duty of the Board of Trustees or managers
to obtain actuarial valuations or reports at more
frequent intervals in other circumstances or on
other occasions.
(9) An actuarial valuation or report shall be
prepared in a manner to give information, contain
statements and satisfy other requirements that may
be prescribed by the Board of the Authority.
(10) The Board of Trustees shall ensure that any
actuarial valuation or report obtained by them is
made available to the Board of the Authority within
thirty days after receipt.
Exemption from taxes
54.
The Trust is exempted from payment of corporate
income tax and subject to article 174 of the
Constitution, the Minister for Finance may, with the
prior approval of Parliament, waive other taxes in
relation to the Trust.
Administrative expenses
55.
(1) The expenses related to the administration of
the social security scheme except those expenses
mentioned in subsections (2) and (3), shall be
charged on the Fund in accordance with generally
accepted accounting practice in relation to
pensions, subject to a maximum limit set by the
Board of Trustees in line with the general
guidelines that may be issued by the Authority and
consistent with best practices of similar social
security schemes.
(2) The other expenses related to the provision of
support services for other complementary schemes
shall be charged to the complementary schemes based
on an agreed formula.
(3) The administrative expenses involved in the
transfer of the two and half per centum of the
National Health Insurance Scheme shall be charged to
the National Health Insurance Scheme on a formula to
be agreed upon by the National Health Insurance
Scheme and the Trust.
Permitted expenditure from scheme funds
56.
The Board of Trustees shall not charge any
expenditure or make any deductions from the social
security scheme funds other than those prescribed by
the Authority or authorised under this Act.
Account of members
57.
(1) The Board of Trustees shall cause to be
maintained for each member, an account to which
shall be credited contributions of that member.
(2) The Trust shall send an annual statement of
account to members of the social security scheme
which shall be sent to their current address or the
last known address of the member, except that where
the member fails to provide an address, the Trust
shall not be under any obligation to send a
statement of account to that member.
Employers and workers
Application of social security scheme
58.
(1) The social security scheme applies to
(a)
every employer and to each worker employed by its
establishment;
(b)
any other employer, worker and self-employed to whom
the Social Security Act, 1991 (P.N.D.C.L. 247)
applied immediately before the commencement of this
Act, and
(c)
self-employed persons, who opt to join the social
security scheme.
(2) Where a member has ceased to be employed, that
member may continue to pay a monthly contribution at
the rate of thirteen and half per centum of that
member's declared income or salary.
Entryage
,
59.
The minimum age at which a person may join the
social security scheme is fifteen years and the
maximum age is forty-five years.
Age exemption
60.
(1) A worker who is entitled to retirement benefits
under a pension scheme in existence before the
commencement of this Act and is aged fifty-five
years or above is exempt from the scheme.
(2) Despite the provisions of subsection (1) a
person who is fifty- five years and above exempted
under this Act may opt to join the new scheme.
(3) For members exempted under subsection (1), the
employer and worker shall continue to contribute to
the employee's retirement benefit at the same level
of contribution before the commencement of this Act
until the worker retires.
Social security number
61.
(1) A worker to whom the social security scheme
applies shall be given a Social Security Number on
registration with the Trust.
(2) The social security number is not transferable
and shall be used by the worker throughout the
working life of that worker and for the purposes of
this Act.
(3) An employer shall not transfer or use the Social
Security number of one worker for another.
Existing schemes
62.
(1) The existence ofa private or company pension
provident fund, superannuation scheme or gratuity
scheme in respect of workers to whom this Act
applies does not exempt the employer or the workers
from the application of this Act and an employer is
responsible for deducting contributions from the
remuneration of workers and paying them along with
the employer's own contributions to the Fund at the
rates specified in
this Act.
(2) Despite any other provision, an employer may
(a)
amend written provisions of an existing scheme with
the prior approval of the governing body of the
existing scheme or with the consent of the Board of
the Authority, or
(b)
adjust the benefits that may be derived from the
scheme to enable the payment of contributions to be
effected under this Act.
Contributions
Mandatory contributions
63.
(1) An employer shall remit thirteen and half per
centum out of the total contributions of eighteen
and a half per centum on behalf of the worker to the
first tier mandatory social security scheme within
fourteen days after the end of each month to the
Trust.
(2) The minimum contribution is thirteen and half
per centum of the approved monthly equivalent of the
national daily minimum wage.
(3) Despite subsection (1) the maximum contribution
shall not exceed thirteen and half per centum of a
maximum amount that may be determined periodically
by the Trust in consultation with the Board of the
Authority.
(4) Out of the total contributions of thirteen and
half per centum received on behalf of each member,
two and half per centum shall be deducted and
transferred to the National Health Insurance Fund.
(5) Where an employer deducts contribution from the
salary of a worker, the contribution shall be held
by the employer in trust until remitted to the
Trust.
(6) Payment of contributions by an employer of an
establishment to the Trust shall be accompanied with
a contribution report in a form that may be
prescribed by the Trust including electronic means.
(7) An employer shall submit the contribution report
for that month at the end of that month, whether the
contribution is remitted to the Trust or not.
(8) An employer shall remit the total contribution
of eighteen and one half per cent on behalf of a
worker who does not qualify to join the social
security scheme to the second tier mandatory
occupational pension scheme within fourteen days
after the beginning of each month.
(9) Subject to subsection (8) a percentage of the
eighteen and one half per cent to be determined by
the Board of the Authority under the mandatory
second tier occupational scheme shall be utilised to
purchase an annuity for life from a life insurance
company licensed by the National Insurance
Commission with monthly or quarterly payments.
(10) Despite an agreement or understanding to the
contrary, an employer is not entitled to
(a)
deduct or recover the employee's contribution from
the worker's salary, or
(b)
the member's contribution for an earlier
contribution period from the salary in respect of a
later period.
(11) For the purpose of subsection (10), the
employer is entitled to make those deductions if the
(a)
failure to make the deduction was due to a false
declaration made in writing by the worker at the
time of employment, or
(b)
failure to deduct the contribution was the result of
a mistake or a clerical error in which case the
deductions shall be made according to the written
instructions of a designated officer of the Trust.
Penalty for non-payment of contributions
64.
(1) Subject to subsection (2) if a contribution is
not paid within the specified period
(a)
a sum equal to three per centum per month of the
contribution payable shall be added to the
contribution as a penalty;
(b)
the Director-General shall serve a demand notice on
the defaulting contributor and if payment of the
contribution and penalty is not made within thirty
days after the date of
the service of the notice, the Director-General may
proceed to collect and recover the contribution and
the penalty; and
(c)
if a person without reasonable excuse fails to pay
the contribution and a penalty imposed under
paragraph (a), the Director-General may
direct the person to pay an
additional penalty of a sum equal to three per
centum of the total of the outstanding contribution
and penalty imposed under that paragraph for each
month during which
the default continues.
(2) The Director-General may remit wholly or partly,
the penalty imposed under subsection (1) with the
approval of the Board of Trustees.
Multiple-employer
65.
Where a worker is concurrently employed by more than
one employer, each employer is responsible for only
that employer's obligation under this Act.
Employer not to reduce remuneration
66.
An employer shall not by reason of a liability for a
contribution to the scheme or for any other charges
under this Act or Regulations, reduce whether
directly or indirectly, the salary or other
emoluments of a member of the scheme.
Investments
Investment policy
67.
(1) The Board of Trustees shall ensure that
(a)
a statement of investment policy is prepared and
maintained for the social security scheme, and
(b)
the statement is reviewed and revised as necessary.
(2) In preparing or revising a statement of
investment policy, the Board of Trustees shall
comply with guidelines issued by the Authority in
consultation with the Board of Trustees.
(3) A statement of investment policy shall include
the
(a)
investment objectives;
(b)
types of securities and other assets that may be
acquired;
(c)
the balance between the different types of
securities and other assets;
(d)
risk in implementing the investment policy; and
(e)
return expected in implementing the investment
policy.
Permitted investments
68.
The Trust may invest the pension fund assets in
units of an investment approved by the Board of
Trustees.
External investments
69.
Subject to the existing Bank of Ghana foreign
exchange rules, the Board of Trustees in
consultation with the Minister for Finance may
invest pension fund assests outside the country
except that the amount to be invested externally
shall not exceed a percentage of the total funds
available for investment determined by the
Authority.
Benefits and qualifying conditions
Superannuation pension
70.
(l) A member of the social security scheme who
(a)
retires on attaining the compulsory retirement age
of sixty years; or
(b)
retires voluntarily on attaining the age of
fifty-five years and has contributed to the social
security fund for a period of not less than fifteen
years'in the aggregate or one hundred and eighty
months ill the aggregate is entitled to a
superannuation pension.
Invalidity pension
71.
(1) A member of the social security scheme who
becomes an in- valid is entitled to invalidity
pension if
(a)
the member has contributed to the Fund for not less
than twelve months within the last thirty-six months
before the occurrence of the invalidity; and
(b)
a medical board certifies that the member is
incapable of normal gainful employment because of
the permanent physical or mental disability.
(2) Where a person to whom subsection (1) applies is
subsequently certified by a medical board to have
fully recovered and that person has not attained the
compulsory retirement age, that person may rejoin
the scheme.
Lump sum payment
72.
(1) Where a member of the social security scheme has
made less than fifteen years contribution to the
Fund before the member retires either compulsorily
or voluntarily, the member is entitled to
(a)
a lump sum of money equal to the member's
contribution as benefit; and
(b)
an interest of seventy-five percent at the
prevailing government treasury bill rate on the lump
sum.
Survivor's lump sum benefit
73.
(1) Where a member of the scheme dies, a lump sum
benefit is payable to the deceased's family who
(a)
are dependants of the deceased; and
(b)
have been validily nominated as beneficiaries of the
deceased.
(2) Where no nomination was made or the nomination
made is found to be invalid by the Trust, the lump
sum shall be distributed to the dependants in
accordance with the Intestate Succession Act, 1985
(P. N. D. C. L. 111).
(3) Where a deceased member failed to nominate a
surviving spouse and children as beneficiaries, the
spouse and children may apply to the court for a
variation of the nomination to include them.
Other benefits
74.
The Minister on the advice of the Authority and in
consultation with the Board of Trustees of the
scheme may by legislative instrument prescribe other
classes of benefits.
Hazardous employment benefit
75.
A member of the social security scheme who has
attained the age of fifty-five years and has been a
worker
(a)
at an underground mine;
(b)
at a steel works; or
(c)
in any other employment determined as hazardous
employment by the Authority
for an aggregate period of not less than one hundred
and eighty months is entitled on retirement to full
retirement benefit.
Qualifying conditions for pension
76.
(1) A person who has
(a)
satisfied the minimum contribution period of not
less than one hundred and eighty months,
(b)
attained the age of sixty years or fifty-five years
in the case of an underground mine worker or a
worker specified in subsection (2) or has opted for
voluntary retirement with
reduced pension, and
(c)
filed an application for superannuation benefit,
is entitled to a pension payment for each month
beginning with the first month in which the person
becomes entitled to the payment.
(2) A person who has satisfied the minimum
contribution period and has worked as an underground
mine worker or in a quarry or in steel works or in
any other employment and is likely to contract
industrial diseases as defined in section 12 (2) of
the Factories Offices and Shops Act, 1971 (Act 328)
by virtue of that employment is entitled to full
pension benefit upon attaining the age of fifty-five
years.
Formula for computation of pensions
77.(1)
A member may be paid full or reduced pension.
(2) The minimum pension payment shall be based on
fifty percentum of the average annual salary for the
three best years of a member's working life.
(3) Where a member works beyond the minimum
contribution period, the amount of pension payable
shall be increased by one and half per cent for
every additional twelve months worked up to a
maximum of eighty per centum.
(4) Where there are grounds to suspect that the
salary has been inflated with intent to defraud, the
Trust shall investigate and the right pension based
on a formula determined by the Trust shall be paid
to the member.
Formula for survivors benefit computation
78. (1) Where a member dies having made at least
twelve months contribution within the last
thirty-six months prior to the death of the member,
a lump sum payment computed on the present value of
the members pension for a period of fifteen years,
using the prevailing treasury bill rate or ten
percent, whichever is the lower, shall be paid to
the members' nominated dependants.
(2) Where a member dies before making at least
twelve months contribution within the last
thirty-six months, a lump sum equal to total
contributions and interest on the lump sum at the
rate of seventy-five per centum of the Government
treasury bill rate shall be paid to the nominated
dependants of the member.
(3) Where a member retires but dies before the age
of seventy-five years, a lump sum payment, based on
the present value of the unexpired pension of the
member not exceeding fifteen years shall be made to
the nominated dependants of the member.
Formula for invalidity computation
79.
Where a member is certified by a medical board as
being invalid, the member is entitled to a pension
based on the minimum pension or the earned pension
whichever is higher.
Periodic review of pensions
80.
The Trust shall annually review the pension payment
which shall be indexed to wage inflation rates of
active members or another rate determined by the
Trust in consultation with the Board of the
Authority.
Nomination
of beneficiaries to receive benefits
81.
(1) A person who is required or entitled to become a
member of the social security scheme shall furnish
to the employer particulars concerning the member's
beneficiaries for the receipt of benefits on the
death of that member.
(2) The employer shall enter the particulars in the
prescribed form and obtain the signature or
thumbprint impression of the person concerned and
forward it to the Trust.
(3) An employer shall ask a potential employee to
state in writing
(a)
whether or not that person is a member of the
scheme;
(b)
the member's account number;
(c)
the name and particulars of the last establishment
if any, where that person was employed; and
(d)
whether anyone has been nominated to receive the
benefits as survivor.
(4) Where that person was a member of the scheme,
the old account number and the nominated
beneficiaries shall continue to be operative, and
the Trust's attention shall be drawn to this by the
new employer.
(5) Subject to subsection (3), a member of the
scheme is free to update the nomination and shall
review the nominations at least once every five
years and forward the nomination to the Trust.
(6) Where payment of benefit has been made to a
person validly nominated or varied by a Court order
under this section, no other person shall have any
other claim against the Trust.
(7) Despite subsection (6), where a member of the
scheme has a child sixty percent of the survivors
benefit shall be distributed to the child and forty
percent to the persons nominated by the member.
Reciprocal agreement
82.
The Government of Ghana may enter into a reciprocal
agreement with the government of another country in
which a scheme similar to the social security scheme
has been established and there may be included in
the agreement the following provisions
(a)
that any period of membership of a scheme in the
jurisdiction of that government may be treated as a
period of membership of the social security scheme
and the reverse; and
(b)
that subject to agreed conditions, an amount
standing to the credit of a member of the social
security scheme in Ghana who works for an employer
in the jurisdiction of
this country may be transferred to the credit of the
member in the scheme in another country and the
reverse.
Legal proceedings
Offences
83.
(1) A person who
(a)
fails or refuses to register any establishment owned
or set up by that person or to register any worker
under this Act, or
(b)
with intent to evade payment of a contribution or
any other amount due knowingly makes a false
statement or representation, or produces or
furnishes or causes to be
produced or furnished a document or information
which that person knows to be false in a material
particular;
(c)
for personal benefit or for any other person,
knowingly makes a false statement or representation
or produces or furnishes, or causes to be produced
or furnished, a document or information which that
person knows to be false in a material particular;
(d)
fails without reasonable excuse or refuses to submit
its contribution payment with a contribution report
or accompany contributions to the Trust within the
prescribed period in the form and manner prescribed;
(e)
wilfully obstructs or assaults an inspector, officer
or servant of the Trust in the discharge of duties;
or
(f)
without reasonable excuse, proof of which shall be
on that person, fails to comply with a provision of
this Act or Regulations made under this Act, is
liable on summary conviction
(g)
in respect of a an offence under paragraph (a)
(b) or (c) to a fine not exceeding the
amount of contribution and penalty owed to the Trust
or to imprisonment for a term not
exceeding five years or both, or
(h)
under paragraph (d), (e) or (f) to a
fine not exceeding two thousand five hundred penalty
units or to imprisonment for a term not exceeding
five years or to both.
(2) Where an employee of the Trust conspires or aids
and abets another person in the commission of an
offence specified in subsection (1), the employee is
on summary conviction liable to the same punishment
as provided under subsection (1).
Institution of criminal proceedings
84.
(1) Criminal proceedings under this Act and
Regulations made under it may be instituted and
conducted by the Attorney-General or an officer of
the Trust appointed by the Attorney-General by
executive instrument.
(2) A Court when convicting a person of an offence
under this Act or Regulations made under it may, in
addition to the fine or imprisonment, order the
person to pay to the Trust the amount of any
contribution, together with any interest or penalty
on the amount due from that person to the Trust at
the date of conviction.
(3) The amount may be recovered together with the
requisite contribution report in the same manner as
a fine and shall be paid and credited to the Trust
accounts of the members of the social security
scheme concerned where applicable.
(4) The order of payment to the Trust shall be
without prejudice to civil remedy.
Offences by body of persons
85.
(1) Where an offence under this Act is committed by
a body of \persons, in the case of a
(a)
body corporate, other than a partnership, each
director or officer of the body corporate is deemed
to have committed the offence, and
(b)
partnership each partner of the firm is deemed to
have committed the offence;
(2) A person shall not be convicted of an offence
under subsection (1) if that person proves that the
offence was committed without the knowledge of the
person or that due diligence was exercised by the
person to prevent the commission of the offence.
Civil proceedings
86.
(1) Despite any other law, a contribution to the
social security scheme along with interest or a
monetary penalty payable or imposed for failure to
pay in time may be recovered by action as a debt
owed to the Trust at any time within twelve years
after the date when the contribution or the penalty
became due.
(2) An action for the recovery of contribution and
other penalties under this section may be instituted
and conducted by an authorised officer of the Trust.
(3) Despite any other law, the Circuit and District
Courts have power to exercise jurisdiction in civil
and criminal matters concerning social security
contributions and offences created under this Act
irrespective of the amount of claim.
(4) The Trust may attach the contribution of a
borrower or guarantor under the Students Loans Act,
1992 (P.N.D.C.L. 276) for the purpose of the student
loans repayment.
Priority for payment of contributions
87.
Where on an application-
(a)
by the Trust, an attachment is issued against the
property of an employer in execution of a decree
against that employer and the property is seized,
sold or otherwise realised in pursuance of the
execution, or
(b)
of a secured creditor, the property of an employer
is sold, the proceeds of the sale or any other
realisation of the property shall not be distributed
to a person entitled to the distribution until the
Court ordering the sale or other realisation has
made provision for the payment of the amount due by
the employer under this Act before the date of the
order.
Protection against attachment
88.
Except as provided in this Act,
(a)
the accumulations to the credit of a member of the
social security scheme, contribution in transit to
the social security scheme or contributions with an
employer, are incapable of being assigned or charged
and are not liable to attachment under any law or
order of a Court in respect of a debt or liability
by the member, even in the event of the bankruptcy
or insolvency of the member;
(b)
an amount actually or potentially standing to a
member's credit on the social security scheme at the
time of the member's death and payable to the
members dependants shall be free from attachment
before it is paid to the dependants;
(c)
accrued contributions to the social security scheme
shall be paid despite the bankruptcy or insolvency
of an employer; and
(d)
the protection against attachment of contributions
shall not apply to a borrower or guarantor under the
Students' Loans Scheme Law.
Exemption from tax
89.
(1) Tax is not payable by an employer or employee in
respect of contribution towards retirement or
pension schemes under this Act.
(2) Tax is not payable on the benefits received
under this Act.
(3) The social security scheme and any existing
scheme under this Act is an approved scheme for
ascertaining the chargeable income of a person for
making the appropriate deductions under the income
tax law, and income tax shall not be paid by an
employer in respect of a worker on contributions
which do not exceed thirteen and one half per centum
of that person's total salary.
Protection for acts done in good faith
90.
A suit or other legal proceedings shall not lie
against a member of the Board of Trustees, an
officer or employee of the Trust in respect of
anything done in good faith in pursuit of the
objectives of this Act, except that personal
liability suffered by a trustee officer or employee
acting in good faith shall be indemnified by the
Trust.
Miscellaneous provisions
Functions of Trust Inspectors
91.
(1) An inspector of the Trust who has reasonable
cause to believe that there are workers on premises
may enter the premises at a reasonable time to make
an examination and enquiry necessary to obtain
information for the purposes of this Act. .•.
(2) The inspector shall produce identification as an
employee of the Trust when making an inspection to
obtain information.
(3) In the discharge of duties under this section,
an inspector may require the production of documents
related to appointment, attendance, wages of workers
and contributions or liability of employers to
contribute to the scheme and take copies of or
extracts from the documents.
(4) Where an establishment has discontinued its work
or has been closed down and does not have premises,
the inspector may require the production of the
documents related to past transactions at a
reasonable place and time, including the office of
the inspector or the office of any other
establishment and the previous employer, or any
other person who has custody of the documents shall
produce them as required by the
inspector.
(5) Where it becomes necessary for an inspector to
visit the premises declared by a competent authority
to be a security or the admission to which is
restricted, the inspector shall not enter the
premises or area without obtaining prior permission
from the officer in charge of the premises.
(6) Where an establishment is liquidated or wound up
or ceases to operate,
(a)
records in relation to the names of the workers,
(b)
the workers' Social Security Numbers and salaries as
defined in this Act, and
(c)
deductions for Social Security contributions shall
be deposited at the Registrar-General's Department
by the employer and the Trust shall be notified by
the employer within seven days.
(7) In this section, an inspector includes a
compliance officer or other officers appointed by
the Trust to perform the function.
Electronic recording and filing and transfer of
documents
92.
(1) The Trust has the option to record, file,
maintain or transfer in electronic form, records of
members required under this Act or Regulations made
under this Act and may receive electronic
transmitted information in respect of the scheme.
(2) A system of electronic recording, maintenance,
filing or transfer of documents shall provide
(a)
the criterion for authorising persons to file the
documents in an electronic form, and
(b)
ensure the security and authentication of the
documents filed or transferred.
Regulations
93.
(1) The Minister, on the advice of the Authority and
on the recommendation of the Board of Trustees may,
by legislative instrument, make Regulations for the
purpose of carrying out the provisions and
principles of this Part.
(2) Despite the Statutory Instruments Act, 1959 (No
52) the penalty for the contravention of Regulations
shall be a fine of not more than two thousand, five
hundred penalty units.
Transitional provisions
94.
(1) On the commencement of this Act, the following
provisions shall apply
(a)
each person to whom the Social Security Act 1991
(P.N.D.C.L. 247) applied immediately before the
commencement of this Act shall be credited for the
number
of months that person has already contributed to the
social security scheme;
(b)
where a member retires on reaching the age of
fifty-five years on the coming into operation of
this Act without satisfying the minimum contribution
period, that person is entitled to a reduced
pension, except where that person contributed for a
period of not less than twenty years; or
(c)
where a member fails to contribute for the minimum
period of twenty years, that member shall be paid
the amount standing to the members credit with
interest calculated at the prevailing treasury bill
rate.
(d)
accrued or past service or past credits earned by
every contributor to whom the new scheme applies in
respect of the 25% lump sum benefit shall have the
lump sum
determined by a formula agreed between the Pension
Reform Implementation Committee and the Trust based
on actuarial assessment.
(2) The rights, assets and liabilities accrued in
respect of the properties vested in the Trust
established under the Social Security Act 1991
(P.N.D.C.L. 247) immediately before the commencement
of this Act and the persons employed by the Trust
are transferred to the Social Security and National
Insurance Trust established under this Act and
accordingly proceedings taken by or against the
former Trust may be continued by or against the
Trust.
(3) A contract subsisting between the former Trust
established under the Social Security Act, 1991
(P.N.D.C.L. 247) and another person and in effect
immediately before the commencement of this Act
shall subsist between the Trust established under
this Act and that other person
(4) The Board of Directors of the Trust existing
immediately before the commencement of this Act
shall continue in office until a new Board of
Trustees is appointed.
PART THREE-OCCUPATIONAL PENSION SCHEMES, PROVIDENT
FUND AND PERSONAL PENSION SCHEMES AND MANAGEMENT OF
THE SCHEMES
Occupational pension schemes
Occupational pension scheme
95.
For the purposes of this Part "occupational pension
scheme" means a pension scheme that is work-based,
established under a trust which provides benefits
based on a defined contribution formula in the form
of a lump sum
(a)
payable on terminacion of service, death or
retirement, or in respect of persons covered under
section 58 of this Act; and
(b)
payable to or in respect of other persons specified
under the second tier of the Scheme as provided for
under section 1 of this Act.
Mandatory contributions
96.
(1) Subject to section 3 (1) and (2) an employer of
an establishment shall, remit a mandatory
contribution of five per centum to approved trustees
of occupational pension schemes, out of the total
contribution of eighteen and a half per centum made
on behalf of the worker.
(2) The contribution shall be remitted by the
employer within fourteen days from the end of each
month.
(3) The minimum contribution shall be five per
centum of the approved monthly equivalent of the
national daily minimum wage.
(4) Where an employer deducts contributions from the
salary of a worker, the contributions shall be held
by the employer in trust until remitted to the
trustees of the occupational pension scheme.
Existing schemes
97.
(1) The existence of a private or company pension
provident fund, superannuation scheme or gratuity
scheme in respect of workers to whom this Act
applies shall not exempt the employer or the worker
from the application of this Act and an employer is
responsible for deducting contributions from the
remuneration of workers and paying them along with
the employer's own contributions to the Fund at the
rates laid down in
this Act.
(2)' Despite any other provision, -an employer may
(a)
amend written provisions of an existing scheme with
the prior approval of the governing body of the
existing scheme or with the consent of the Board of
the Authority; or
(b)
adjust the benefits that may be derived from the
scheme to enable the payment of contributions to be
effected under this Act.
Vesting
98.
(1) A contribution in respect of a member of a
scheme vests in the member as accrued benefits as
soon as it is paid to the approved trustees of the
scheme.
(2) Income or profits derived from the investment
of. the accrued benefits of a member of a scheme by
or on behalf of the approved trustee of the scheme
shall, vest in the member as accrued benefits when
received by that trustee after taking into account
any loss arising from the investment.
Preservation of accrued benefits derived from
contributions
99.
For the purpose of preserving accrued benefits in a
scheme
(a)
a trustee of a scheme shall not payor dispose of any
part of accrued benefits to a scheme member or
another person except in accordance with the
provisions of this Act; and
(b)
an employee or self-employed person shall not have a
right or entitlement to accrued benefits except in
accordance with this Act.
Portability of accrued benefits
100.
(1) A member of an employer sponsored scheme who
ceases to be an employee shall, elect to have the
member's accrued benefits transferred to another
scheme in accordance with the regulations of the
scheme.
(2) Subsection (1) does not apply if a member
exercises an entitlement to have the member's
accrued benefit paid to the member on retirement.
(3) The accrued benefits of a member of the scheme
may be transferred
(a)
to another registered scheme to which the member is
eligible to belong, or
(b)
to another account within the same scheme, if
permitted or required by regulations of that scheme.
(4) Where the accrued benefits of a member of a
scheme are to be transferred, the approved trustee
of the respective schemes shall comply with
requirements with respect to the transfer of the
benefits.
(5) An employer shall comply with requirements or
regulations with respect to the transfer of benefits
if a member of a scheme whose accrued benefits are
to be transferred under this section ceases to be an
employee.
(6) The regulations required for the management of a
scheme may include
(a)
notices to be given, and
(b)
procedure to be followed, in connection with the
transfer of accrued benefits .
Qualifying conditions for withdrawal of accrued
benefits
101.
(1) Under the second tier, a member of the scheme
who has attained retirement age is entitled to the
entire accrued benefits in the scheme in a lump sum.
(2) A member who has not attained retirement age but
has attained the age of fifty years and is not
employed or self-employed is entitled to the entire
accrued benefits in the scheme in a lump sum.
(3) A person who is not a citizen of Ghana who does
not satisfy the qualifying conditions for a benefit
of a scheme but desires to emigrate permanently from
this country may be entitled to the entire accrued
benefits in the scheme in a lump sum.
(4) A member of the scheme who
(a)
is retired on the decision of a properly constituted
medical board, based on the advice of a suitably
qualified physician certifying that the employee is
no longer mentally or physically capable of
performing the functions of the office; or
(b)
is retired due to total or permanent disability
either of mind or body; or
(c)
retires before the age of fifty years in accordance
with the terms and conditions of employment;
is entitled to the entire accrued benefits in the
scheme in a lump sum.
(5)
On the death of a member of the scheme, the approved
trustee of the scheme shall pay the whole of the
member's accrued benefits as a lump sum
(a)
to the member's nominated beneficiaries, or
(b) if there are no nominated beneficiaries, to a
person specified in the rules of the scheme.
Protection of accrued benefits
102.
(1) The accrued benefits of a member in an
occupational pension scheme shall not be attached in
execution of a judgment debt or be used as a charge,
pledge, lien, or be transferred, assigned or
alienated by or on behalf of the member.
(2) A disposition that is contrary to subsection (1)
is void.
Assignment of benefits
103.(1)
A scheme shall have rules to prevent the assignment
of benefit.
(2) Despite subsection (1) a scheme may allow a
member to use that member's benefit to secure a
mortgage for the acquisition of a primary residence.
Exemptions from tax
104.
(1) An employer or employee shall not pay income tax
in respect of contributions on a mandatory
occupational pension scheme.
(2) Benefits received under the scheme are not
taxable.
(3) Investment income including capital gains from
the investment of scheme funds shall for the
purposes of income tax be treated as deductible
income.
(4) The occupational scheme is a scheme to ascertain
the chargeable income of a person to make the
appropriate deductions in respect of income tax.
Records in respect of contributions
105.
(1) An employer shall maintain up-to-date records of
direct payment arrangement.
(2) The record shall
(a)
show the rates and due dates of contributions
payable under the direct payment arrangement, and
(b)
satisfy prescribed requirements.
(3) The employer shall, send a copy of that record
to the trustees of the scheme within the prescribed
period after the preparation of an up-to-date
record.
(4) Where an employer indicates in the records that
a contribution under the direct payment arrangement
has not been paid on or before the due date, the
trustees of the scheme shall give notice to the
Board and the worker of that fact within fourteen
days.
(5) The trustees of the scheme shall send a member a
statement setting out the amounts and dates of the
payment made under the direct payment arrangement
before the end of the prescribed period.
(6) An employer who fails to comply with subsections
(1), (2) or (3) commits an offence and is liable on
summary conviction to a fine of two hundred and
fifty penalty units.
Provident fund and personal pension schemes
Provident fund and personal pension scheme
106.
For the purpose of this Act
(a)
"provident fund scheme" means a scheme governed by a
trust to which a contributor or the contributor's
employer or both contribute to a pension scheme
which provides
benefits based on a defined contribution formula
(i) to provide for the payment of lump sum benefits
to the members of the scheme when they reach the
retirement age, or any other prescribed event occurs
in relation to them; or
(ii) in the case of members who die before reaching
that age or before the occurrence of such an event,
provides for the payment of those benefits to the
personal representatives or beneficiaries of the
estates of those members.
(b)
"personal pension scheme" means any pension scheme
to which the contributor contributes personally to
provide benefits based on a defined contribution
formula in the form of pensions or otherwise,
payable on death or retirement to
or in respect of persons covered under section 107
of this Act or their beneficiaries.
Application
107.
(1) A personal pension scheme applies to individuals
(a)
who want to make voluntary contributions to enhance
their pension benefits outside the mandatory schemes
and any provident fund scheme, and
(b)
in the informal sector who are not covered by any
retirement or pension scheme under the mandatory
part of the three- tier pension scheme.
(2) For persons under subsection (1) (b) a
portion of their contributions may be accessed
before retirement in accordance with the governing
rules of the scheme.
Voluntary contributions
108.
(1) An employer may arrange for a worker to join and
pay contributions to a provident fund or personal
pension scheme where the worker
(a)
is more than fifteen years of age,
(b)
is more than the statutory retirement age, or
(c)
is exempted under sections 31 and 60 of this Act.
(2) The employer is not obliged to pay contributions
of a worker under subsection (1) to the scheme.
(3) Contributions made and returns earned from
investment of the contribution shall, be credited to
the account of the contributor subject to any
deduction of fees.
(4) Where an employer contributes on behalf of a
worker the contribution does not vest in the worker
until at the end of the vesting period.
(5) Subject to subsection (4), an employer's
contributions to a provident fund on behalf of a
worker is for that worker.
(6) Despite subsection (4) in the event of severance
by the employer of the employment relationship with
the worker, or in the event of liquidation of the
employer, an employer's contributions for its worker
shall vest in the worker even if the vesting period
has not expired.
(7) A worker may forfeit part or the total amount of
the employer's contributions if the worker leaves
the employment of the employer before the end of the
vesting period.
(8) On the death of a worker before or after the
expiry of the vesting period, any accrued benefit of
the worker shall devolve on the worker's nominated
beneficiary and in the absence of a nominated
beneficiary in accordance with any applicable law.
Self-employed persons
109.
(1) A self-employed person may join and pay
contributions to a personal pension scheme if the
person is more than the statutory retirement age or
is exempted under this Act or is not more than
fifteen years of age.
(2) Contributions by self-employed persons in the
informal sector who are not covered under the
mandatory scheme shall be credited to two separate
individual sub-accounts
(a)
the personal savings account, and
(b)
the retirement account.
(3) The proportions to be credited to each account
shall be prescribed in the governing rules of the
scheme.
(4) A contributor may withdraw part of the
contributor's personal savings account in accordance
with this Act and the governing rules of the scheme.
(5) The proceeds of the retirement account shall
only be paid on the retirement of the contributor as
monthly or quarterly pensions.
(6) The provisions of this Act on accrued benefits
and the governing rules of the scheme which do not
conflict with this Act shall apply to accrued
benefits derived from voluntary contributions paid
to a scheme under the provident fund and personal
pension scheme.
Qualifying conditions for withdrawal of accrued
benefits
110.
(1) A member who has attained the retirement age is
entitled to the entire accrued benefits in the
scheme in a lump sum.
(2) A member who has not attained the retirement age
may withdraw all or part of the member's accrued
benefits from a scheme
(a)
after ten years from the date of first contribution
in the case of the provident fund or personal
pension scheme for contributors in the formal
sector,
(b)
after five years from the date of first contribution
in the case of personal pension scheme for
contributors in the informal sector, or
(c)
following a certification by a medical board that
the contributor is incapable of any normal gainful
employment by virtue of a permanent physical or
mental disability.
(3) The beneficiaries of the estate of a deceased
contributor may withdraw the accrued benefits of the
deceased from the scheme.
Retirement benefits
111.
A contributor who is not covered under a mandatory
pension scheme or any other pension scheme is
entitled to
(a)
use a percentage of accrued benefits, prescribed by
the Board of the Authority to purchase an annuity
for life payable monthly or quarterly from a life
insurance company licensed by the National Insurance
Commission, and
(b)
a lump sum payment from the balance standing to the
credit of the contributor's accrued benefits or
personal savings account.
Tax reliefs
112.
(1) Subject to this Act, contributions made by an
employer to a provident fund scheme on behalf of a
contributor shall be treated as part of the
deductible income for that employer for a tax year
for the purpose of income tax.
(2) Contributions not exceeding sixteen and one half
per centum of a contributor's monthly income, made
by either a contributor or the contributor's
employer or both shall, be treated as deductible
income, for the purpose of income tax for the
contributor and the contributor's employer to the
extent of their respective contributions.
(3) Persons in the informal sector who are not
covered by the mandatory first tier basic national
social security scheme and second tier occupational
pension scheme, shall have thirty-five per centum of
their declared income treated as deductible income
for the contributor for the purposes of income tax.
(4) Investment income including capital gains from
the investment of scheme Funds shall for the
purposes of income tax, be treated as deductible
income.
(5) A withdrawal of all or part of a contributor's
accrued benefits under a provident fund or personal
pension scheme
(a)
on or after retirement shall be tax exempt;
(b)
shall be subject to the appropriate income tax for
contributors in the formal sector before ten years
of contributions and before retirement;
(c)
shall be subject to the appropriate income tax for
contributors in the informal sector before five
years of contributions and before retirement.
(6) A withdrawal from a scheme at any time after
certification by a medical board that the
contributor is incapable of normal gainful
employment due to a permanent physical or mental
disability is tax exempt.
(7) A withdrawal from a provident fund or personal
pension scheme at any time by the beneficiaries of
the estate of a deceased contributor is tax exempt.
Creation of encumbrance in respect of contribution
113.
(1) A contributor may pledge or create a charge in
respect of a
part or all of the contributor's accrued benefits.
(2) A beneficiary who enforces a pledge or charge
created by a contributor is liable for any tax
applicable to withdrawals under a scheme.
Assignment of benefits
114.(1)
A scheme shall have rules that prevent the
assignment of benefit.
(2) Despite subsection (1) a scheme may allow a
member to use that member's benefit to secure a
mortgage for the acquisition of a primary residence
but a member is not liable to pay tax on any
withdrawal under this section.
Duty of employer in respect of personal pension
scheme
115.
Despite the provisions of any governing rules or an
agreement, an employer shall
(a)
provide the administrative and accounting services
required to enable a worker join and contribute to a
personal pension scheme of the employee's choice;
(b)
make appropriate payroll deductions from the monthly
salary of a worker who desires to contribute to a
personal pension scheme and remit the contributions
to the approved trustee of the scheme within
fourteen days after the end of
the month of deduction; and
(c)
not mingle payroll deductions with the employer's
own funds and where an employer deducts
contributions from the salary of a worker the
contributions shall be held by the employer in trust
until it is remitted to the appropriate approved
trustee.
Monitoring of provident fund contributions
116.
(1) An employer shall ensure that there is an
up-to-date record of direct payment arrangement.
(2) The record shall
(a)
show the rates and due dates of contributions
payable under the direct payment arrangement, and
(b)
satisfy prescribed requirements.
(3) The employer shall send a copy of that record to
the trustees of a scheme, within the prescribed
period after the preparation of an up- to-date
record.
(4) The trustees of the scheme shall, give notice
where any contribution shown by the record to be
payable under the direct payment arrangement has not
been paid on or before its due date except as
provided
(5) The notice shall be given by the trustees to the
Board of the Authority and the employees within the
prescribed period.
(6) The trustees of the scheme shall before the end
of the prescribed intervals send the member a
statement setting out the amounts and dates of the
payments made under the direct payment arrangement
during a prescribed period.
Life insurers carrying on pension and provident fund
business
· 117. A life insurer who carries on personal
pension and provident fund business shall
(a)
maintain a separate and distinct Fund known as the
Pension Fund representing the liabilities of that
insurer in respect of pension and provident fund
business;
(b)
maintain a separate and distinct account related to
the income and expenditure of that insurer in
respect of its pension and provident fund business;
and
(c)
designate which of the assets of the insurer are to
be regarded as assets of the Pensions Fund to be
clearly shown in the balance sheet or other accounts
of the insurer as assets of the Pensions Fund.
Winding-up
118.
(l) In the event of a winding up of an employer
sponsored provi- dent fund scheme,
(a)
contributions made by the employer on behalf of a
contributor before the vesting period shall not be
available to a liquidator of the employer; and
(b)
unpaid contributions of the employer and payroll
deductions made from the contributor's salary which
have not been remitted to a trustee at the time of
liquidation shall have priority over any other debt.
(2) Where a scheme is being liquidated
(a)
the trustee shall not receive any contributions from
the date of the commencement of the winding-up under
a scheme managed by the trustee;
(b)
any schemes operated by the trustee may be merged
with a scheme operated by another trustee with the
approval of the contributor and on the directions
of the board
(c)
the merger shall be conducted to the other trustee
by the transfer of the assets and liabilities of the
scheme by the trustee to that trustee. .
(3) Where the registration of a custodian is being
withdrawn, the trustee of the scheme to which the
trust relates shall appoint another custodian
approved by the Board with the approval of the
contributor.
Trustees
Independent director and independent trustee
119.
(1) A director is not an independent director if the
director
(a)
is a worker, partner or associate of a person who
has applied to become a trustee of the applicant, or
of an associate of the applicant; or
(b)
is a director of an associate of the applicant; or
(c)
holds shares of the applicant or of any associate of
the applicant; or
(d)
fails to satisfy the Board that the director has no
past or present association financial or otherwise
with
(i) the applicant other than as a director or
professional adviser; or
(ii) a controller of the applicant; or
(iii) an associate of the applicant or of any other
controller;
that could affect the impartiality of the director's
independent judgement; or
(e)
is a controller otherwise than by virtue of being a
director, close relative, partner or employee of the
applicant or of an associate of the applicant; or
(f)
is an auditor or actuary of any occupational pension
or provident fund scheme administered by the
applicant.
(2) A trustee is not an independent trustee if the
trustee
(a)
is a controller, close relative, partner or employee
of the participating employer or of an associate of
that employer; or
(b)
where the participating employer is a company, holds
shares of the company or of an associate of that
company; or
(c)
fails to satisfy the Board that the person has the
skill, knowledge, experience and qualifications that
are, in the opinion of the Board, necessary for that
person to
administer occupational fund schemes; or
(d)
fails to satisfy the Board that the applicant has no
past or present association financial or otherwise
with
(i) the participating employer; or
(ii) a controller of that employer; or
(iii) an associate of that employer or of any a
controller; that can affect the impartiality of the
trustee's independent judgement; and
(e)
is an auditor or actuary of the scheme.
Trustees
120.
At the commencement of this Act, occupational
pension schemes, provident fund schemes, personal
pension schemes and other privately-managed pension
schemes shall only be managed by trustees licensed
approved by the Board.
Functions of a trustee
121.
A trustee licensed under this Act shall, in addition
to other duties imposed by a trust deed, perform the
following functions:
(a)
secure scheme registration;
(b)
appoint pension fund managers, custodians and other
service providers and ensure their compliance with
regulatory requirements or guidelines;
(c)
maintain investment policy statements and internal
control procedures that may be prescribed by the
Board;
(d)
ensure that the investment of funds of the scheme is
diversified to minimise investment risk;
(e)
act as a provident trustee in financing relationship
with its members;
(f)
discharge the duties of a trustee;
(g)
process transfer and payment requests as contained
in the trust;
(h)
keep proper accounting records and a members'
register;
(i)
prepare and lodge annual audited financial
statements, scheme and investment reports and other
relevant records that the Board may require; and
(j)
perform other functions as may be directed by the
Board.
Application for a licence
122.
(1) A person shall not be appointed as a trustee
unless that person licenced in accordance with this
Act.
(2) A person seeking to be appointed as a trustee
shall apply to the Board.
(3) The application shall
(a)
be in a form prescribed by the Board,
(b)
contain information and documents prepared in a
manner prescribed by the Board, and
(c)
be accompanied with the prescribed fee.
(4) A person who fails to obtain a licence and yet
acts as a trustee commits an offence and is liable
on summary conviction to a fine of two thousand
penalty units or to a term of imprisonment not
exceeding two years or to both.
Conditions for licence as a trustee
123.
(1) A person does not qualify to be appointed a
trustee unless that person
(a)
satisfies the minimum capital and net asset value
requirement or a sum that may be prescribed by the
Board;
(b)
has the requisite qualified management staff in the
appropriate profession; and
(c)
has obtained a licence from the Board to manage
pension schemes.
(2) A company is not eligible to apply for a licence
unless
(a)
it is a trust company with a registered company name
including the word "trust" or "trustee";
(b)
its business is restricted to trust business; and
(c)
at least one of the Company's directors is an
independent director.
(3) The Board shall prescribe the qualifications of
independent directors for the purposes of subsection
2 (c).
(4) An individual person is not eligible to make an
application under this section if that individual is
(a)
found by a court to be of unsound mind and incapable
to manage the person's personal affairs; or
(b)
an undischarged bankrupt or has entered into a
composition with creditors without paying the
creditors in full.
Consideration of application
124.
(1) The Board shall consider an application for
appointment as a trustee and take final decision
within ninety days after the date of the submission
of the application.
(2) The Board may, require an applicant by notice,
to provide additional information and relevant
documents that may be reasonably necessary to enable
it determine the application.
(3) Where a requirement is not complied with within
the time specified in the notice, the Board may
reject the application.
Approval of application
125.
(1) The Board may approve an application for
appointment as trustee if the Board is satisfied
that the applicant
(a)
is capable of performing the functions that are
required of an approved trustee; and
(b)
has entered into an undertaking with the Board that
the applicant shall not, in relation to a registered
scheme of which the applicant is the approved
trustee, refuse an
application for membership of the scheme made by or
on behalf of a person who is
(i) not precluded by a provision of this Act from
being a member of the scheme, and
(ii) required under this Act to be a member of a
registered scheme; and
(c)
shall comply with the Regulations prescribed by the
Board.
(2) Regulations referred to in subsection (1) (c)
may include the following:
(a)
qualifications that an applicant must have;
(b)
financial resources that an applicant must have
including capital adequacy;
(c)
in the case of an application by a company,
(i) the membership of the company,
(ii) the objects of the company as set out III its
constitution, and
(iii) the suitability of the company's regulation
and experience in administering pension fund
schemes;
(d)
in the case of an application by an individual, the
applicant must
(i) have professional knowledge and experience to
administer a pension fund; and
(ii) execute a performance guarantee.
Power to impose conditions
126. The Board may .
(a)
impose appropriate conditions with respect to the
conduct of the applicant's business; and
(b)
specify conditions in a certificate issued to the
trustee when making the appointment of a trustee.
Representation to the Board
127.
(1) The Board shall offer an applicant the
opportunity to make representation orally or in
writing before an application for appointment as
trustee is rejected.
(2) Where the Board refuses an application, the
Board shall give in a written notice reasons for the
refusal to the applicant.
(3) An applicant dissatisfied with the decision of
the Board may refer the matter for settlement
through an appropriate dispute resolution mechanism.
Waiver of conditions
128.
The Board may waive a condition where compliance
with the condition in a particular case is not
reasonably practicable.
Application for registration of occupational pension
scheme or provident fund scheme as employer
sponsored scheme or master trust scheme
129.
(1) An application for the registration of an
occupational pension or provident fund scheme as an
employer sponsored scheme maybe made to the Board
only by
(a)
a company which has been approved as a trustee or
has applied for approval as a trustee;
(b)
financial resources that an applicant must have
including capital adequacy;
(c)
in the case of an application by a company,
(i) the membership of the company,
(ii) the objects of the company as set out in its
constitution, and
(iii) the suitability of the company's regulation
and experience in administering pension fund
schemes;
(d)
in the case of an application by an individual, the
applicant must
(i) have professional knowledge and experience to
administer a pension fund; and
(ii) execute a performance guarantee.
Power to. impose conditions
126.
The Board may .
(a)
impose appropriate conditions with respect to the
conduct of the applicant's business; and
(b)
specify conditions in a certificate issued to the
trustee when making the appointment of a trustee.
Representation to the Board
127.
(1) The Board shall offer an applicant the
opportunity to make representation orally or in
writing before an application for appointment as
trustee is rejected.
(2) Where the Board refuses an application, the
Board shall give in a written notice reasons for the
refusal to the applicant.
(3) An applicant dissatisfied with the decision of
the Board may refer the matter for settlement
through an appropriate dispute resolution mechanism.
Waiver of conditions
128.
The Board may waive a condition where compliance
with the condition in a particular case is not
reasonably practicable.
Application for registration of occupational pension
scheme or provident fund scheme as employer
sponsored scheme or master trust scheme
129.
(1) An application for the registration of an
occupational pension or provident fund scheme as an
employer sponsored scheme may be made to the Board
only by
(a)
a company which has been approved as a trustee or
has applied for approval as a trustee;
(b)
two or more individuals who are approved trustees,
or have applied for approval and at least one is an
independent trustee; or
(c)
a company and one or more individuals .
(2) An application for the registration of an
occupational pension or provident fund scheme as a
master trust scheme shall be made to the Board by an
approved trustee that is a company or by a company
that has applied for and been granted a licence
under this Act.
(3) If an application is made by two or more
approved trustees who are individuals, at least one
of them must be an independent trustee.
(4) The Board may by regulations prescribe the
qualifications of independent trustees for the
purpose of this subsection.
Contents of application
130.
(1) An application under section 129 shall
(a)
specify particulars of the scheme to be registered,
(b)
contain other information prescribed in guidelines
issued under this Act, and
(c)
be accompanied with
(i) a copy of the proposed rules that govern the
scheme and other documents that may be prescribed in
guidelines issued under this Act, and
(ii) an application fee of an amount to be
determined.
(2) The Board may, require an applicant by notice to
provide additional information and documents
reasonably necessary to enable it evaluate the
application.
(3) The Board may reject an application if an
applicant does not provide information required by
the Board within a specified time.
Consideration of application
131.
(1) The Board shall consider an application for
registration of a scheme and take a final decision
within ninety days after receipt of the application.
(2) The Board may register a scheme if it is
satisfied that the scheme complies or will comply
with the requirements and standards prescribed by
the regulations in accordance with this Act.
(3) The Board shall require the applicant to enter
into an undertaking with respect to the
administration of the scheme as a condition for
registering an occupational pension or provident
fund scheme including in the case of an application
to register a scheme
(a)
as an employer sponsored scheme, an undertaking to
approve an application for membership of the scheme
made by or on behalf of a relevant employee of the
participating employer; and
(b)
as a master trust scheme, an undertaking to approve
an application for membership of the scheme made by
or on behalf of any
(i) relevant employee in the formal sector, or
(ii) self-employed person who is fifteen years of
age or above and below retirement age and engaged in
the informal sector.
(4) Without limiting subsection (3), the Board may
impose other conditions for the administration of an
occupational pension scheme or provident fund
scheme.
Refusal of application
132.
(1) The Board shall not refuse an application
without giving the applicant an opportunity to make
representations either orally, in writing, or both.
(2) Where the Board refuses an application, the
Board shall give reasons in a written notice to the
applicant.
Certificate of registration
133.
(1) On registration of an occupational pension or
provident fund scheme, the Board shall issue a
certificate of registration to the approved trustee
of the scheme and, if there are any conditions with
respect to the administration of the scheme, the
Board shall specify the conditions in the
certificate or in a document accompanying the
certificate.
(2) The certificate shall specify whether the scheme
is an employer sponsored scheme or a master trust
scheme.
Waiver of condition
134.
The Board may waive an applicant's compliance with a
condition imposed
(a)
in a particular case, and
(b)
where the person satisfies the Board that compliance
is not, or has not been reasonably practicable in
the circumstances.
Application for registration as personal pension
scheme
135.
(1) An application for the registration of a scheme
as a personal pension scheme shall be made to the
Board by
(a)
a company that is a licensed trustee or has applied
for approval to the Board;
(b)
two or more individuals who are licensed trustees,
or have
applied for licence and at least one is an
independent trustee;
or
(c)
such a company and one or more individuals.
(2) Regulations made under this section may
prescribe the qualifications of independent
trustees. .
Contents of application
136.
(1) An application for registration of a scheme as a
personal pension scheme shall
(a)
specify particulars of the scheme to be registered
and contain other information, if any, as prescribed
in guidelines issued under this Act; and
(b)
be accompanied with
(i) a copy of the proposed rules that are to govern
the scheme and other documents, as prescribed in
guidelines issued under this Act; and
(ii) an application fee of an amount prescribed by
Regulations.
(2) The Board may, require an applicant by notice to
provide additional information and documents
reasonably necessary to enable it determine the
application.
(3) If a requirement is not complied with within a
reasonable time specified in the notice, the Board
may reject the application.
Consideration of application
137.
(1) The Board shall consider the application for
registration of a personal pension scheme within
thirty days and take a final decision within ninety
days after receipt of the application.
(2) The Board may register a scheme as a personal
pension scheme if the Board is satisfied that the
scheme
(a)
complies with, or will if registered comply with,
the requirements and standards that are prescribed
by the regulations, and
(b)
will be governed by the laws of this country.
(3) The Board shall require the applicant
(a)
to enter into an undertaking with respect to the
administration of the scheme,
(b)
not to refuse an application for membership of the
scheme made by or on behalf of a
(i) relevant employee who is employed in the formal
sector, or
(ii) self-employed person who is above fifteen years
and below retirement age and engaged in the informal
sector as a condition for the registration of a
personal pension scheme under this section.
(4) Without limiting subsection (3), on the
registration of a personal pension scheme, the Board
may impose conditions as regards the administration
or marketing of the scheme as it considers
appropriate.
Refusal of application
138.
(1) The Board shall not refuse an application for
registration of a personal pension scheme without
giving the applicant an opportunity to make oral or
written representations.
(2)
Where
the Board refuses an application, the Board shall
give reasons in a written notice for the refusal to
the applicant.
Certificate of registration
139.
(1) On registering a scheme as a personal pension
scheme, the Board shall
(a)
publish a notice of the registration in the
Gazette, and
(b)
issue to the approved trustee of the scheme a
certificate of registration and the conditions for
the administration or marketing of the scheme in the
certificate or in a document accompanying the
certificate.
(2) The certificate shall specify that the scheme is
a personal pension scheme.
Power to impose, amend or waive conditions
140.
(1) Where the Board decides that it is appropriate
to impose or amend any conditions imposed as regards
the administration or marketing of a personal
pension scheme, the Board shall give to the licensed
trustee
(a)
notice of not less than thirty days of its decision
and the reasons; and
(b)
an opportunity to make written representations to
the Board,
(2) The Board may waive an applicant's compliance
with a condition imposed
(a)
in a particular case, and
(b)
where the person satisfies the Board that compliance
is not, or has not been, reasonably practicable in
all the circumstances of that case.
(3) The Board shall not impose or amend any
conditions with respect to the marketing of a
registered scheme under this section unless the
imposition or amendment, is within the ambit of the
guidelines.
Requirement for member-nominated trustees
141.
(1) The trustees of an occupational pension scheme
shall ensure that within a reasonable period of the
commencement date, arrangements are in place to
provide for at least one-third of the total number
of trustees to be member-nominated trustees, and
implement those arrangement.
(2) Member-nominated trustees are trustees of an
occupational pension scheme who are
(a)
nominated as the result of a process in which the
active members of the scheme are eligible to
participate, and
(b)
selected by some or all of the members of the
scheme.
(3) The commencement date, in relation to a scheme,
is the date upon which this section first applies in
relation to the scheme.
(4) The arrangements for the scheme may provide for
a greater number of member-nominated trustees than
that required to satisfy the one-third minimum
specified in subsection (1) only if the employer has
approved the greater number and shall provide
(a)
for the nomination and selection process to take
place within a reasonable period of any requirement
arising under the arrangements to appoint a
member-nominated trustee;
(b)
that where there is a vacancy because insufficient
nominations are received, the nomination and
selection process shall be repeated at reasonable
intervals until the
vacancy is filled;
(c)
that where the employer requires, a person who is
not a member of the scheme must have the employer's
approval to qualify for selection as a
member-nominated trustee; and
(d)
that subject to paragraph (c) where the
number of nominations received is equal to or less
than the number of appointments required, the
nominees are considered to be
selected.
(e)
that the removal of a member-nominated trustee
requires the agreement of all the other trustees.
(5) The provisions in the arrangements of the scheme
shall not exclude member-nominated trustees from
exercising functions exercisable by other trustees
because they are member-nominated trustees.
(6) This section does not apply in relation to an
occupational pension scheme if
(a)
each member of the scheme is a trustee,
(b)
every trustee of the scheme is a company, or
(c)
the scheme is of a prescribed description.
(7) In the case of an occupational pension scheme
where the arrangements required under subsection (1)
are not in place, or being implemented, a trustee
shall be liable on summary conviction to a fine of
two thousand penalty units or to a term of
imprisonment of not more than two years.
Requirement for member-nonnnated directors of
corporate trustees
142.
(1) Where a company is a trustee of an occupational
pension scheme and each trustee of the scheme is a
company, the company shall ensure that within a
reasonable period after the commencement date,
arrangements are in place which provide for at least
one-third of the total number of directors of the
company to be member-nominated
directors and implement those arrangements.
(2) Member-nominated directors are directors who are
(a)
nominated as the result of a process which the
active members of the occupational pension scheme
are eligible to participate in the activities of the
company, and
(b)
selected by some or all of the members of that
scheme.
(3) The commencement date, in relation to a company,
is the date on which this section first applies in
relation to the company.
(4) The arrangements may provide for a greater
number of member-nominated directors than that
required to satisfy the one-third minimum specified
in subsection (1) only if the employer has approved
the greater number.
(5) The arrangements shall provide
(a)
for the nomination and selection place within a
reasonable period of any requirement arising under
the arrangements to appoint a member-nominated
director;
(b)
that where a vacancy is not filled because
insufficient nominations are received, the
nomination and selection process shall be repeated
at reasonable intervals until the
vacancy is filled;
(c)
that where the employer requires, a person who is
not a member of the scheme shall obtain the
employer's approval to qualify for selection as a
member nominated director; and
(d)
that subject to paragraph (c), where the
number of nominations received is equal to or less
than the number of appointments required, the
nominees shall be deemed to be
selected.
(6) The arrangements shall provide that the removal
of a member nominated director requires the
agreement of all the other directors.
(7) The provisions in the arrangements shall not
exclude member- nominated directors from exercising
the functions exercisable by other directors only
because they are member-nominated directors.
(8) Where the same company is a· trustee of two or
more occupational pension schemes, subject to
subsection (9), the
(a)
schemes shall be treated as if they were a single
scheme,
(b)
members of each of the schemes shall be considered
as members of that single scheme, and
(c)
references to the employer shall be references to
all the employers in relation to the schemes.
(9) This section does not apply in relation to an
occupational pension scheme if the scheme is of a
prescribed description.
(10) In the case of a company which is a trustee of
an occupational pension scheme, where the
arrangements required by subsection (1) are not in
place or being implemented, the trustee of the
company is liable on summary conviction to a fine of
not more than fifty penalty units for each day that
the offence continues or to a fine determined by the
Board.
Knowledge and understanding of individual trustees
143.
(1) A person who is an individual trustee of an
occupational pension scheme shall be conversant with
(a)
the trust deed and scheme rules,
~
(b)
any statement of investment policy for the time
being maintained under section 153 of this Act, and
(c)
any other document recording policy adopted by the
trustees relating to the administration of the
scheme generally.
in relation to each relevant scheme.
(2) An individual to whom this section applies shall
be knowledgeable in the law relating to pensions and
trusts, and principles related to
(i) the funding of occupational pension schemes,
(ii) investment of the assets of the schemes, and
(iii) any other matters as may be prescribed.
(3) The degree of knowledge and understanding
required under subsection (1) is what is appropriate
for the purpose of enabling the individual to
exercise the functions of a trustee of any relevant
scheme.
Knowledge and understanding of corporate trustees
144.
(1) This section applies to a company that is a
trustee of an occupational pension scheme.
(2) A company to which this section applies shall,
ensure that each individual who performs a function
of the company ~s trustee of the scheme is
conversant with the following documents relevant to
the performance of that function:
(a)
the trust deed and scheme rules;
(b)
any statement of investment policy for the time
being maintained under section 153 of this Act; and
(c)
any other document recording policy for the time
being adopted by the trustees relating to the
administration of the scheme generally.
in relation to each relevant scheme.
(4) A company to which this section applies shall
ensure that an individual who performs a function of
the company as trustee of a relevant scheme has the
requisite knowledge in the
(a)
law relating to pensions and trusts,
(b)
principles relating to
(i) the funding of occupational pension schemes,
(ii) investment of the assets of these schemes, and
(iii) any other matters as may be prescribed.
(5) The degree of knowledge and understanding
required under subsection (4) is what is appropriate
to enable the individual to perform the function.
(6) References in this section to the performance by
an individual of a function of a company relates to
acts done by the individual on behalf of the company
which constitutes the performance of the function by
the company.
Fees of trustees
145.
A trustee shall be paid a fee subject to the limits
determined by the Board.
Pension fund managers
Pension fund managers, registration requirements
146.
(1) At the commencement of this Act, pension funds
shall be managed by pension fund managers registered
by the Board.
(2) A person shall not practise as a pension fund
manager unless that person has been registered by
the Board.
Functions of pension fund managers
147.
A pension fund manager registered under this Act
shall perform
the following functions:
•
(a)
invest pension funds and assets in accordance with
the provisions of this Act;
(b)
invest the funds in different investments to
minimise investment risks whilst achieving the best
return within specific investment activities set by
trustees;
(c)
maintain books of account on transactions related to
pension funds invested;
(d)
submit its activities to inspections in the
discharge of duties
of trustees;
(e)
submit records and reports that the Board may
require; and
(f)
perform other functions that the Board may prescribe
that are incidental to the performance of its
functions.
Requirements for registration as a pension fund
manager
148.
A person does not qualify to be registered as a
pension funds manager for the purpose of this Act
unless that person
(a)
is independent from the trustee and custodian,
(b)
is a body corporate,
(c)
is licensed by the Security and Exchange Commission
as an investment adviser under the Securities
Industry Act 1993 (P.N.D.C.L. 333),
(d)
satisfies the minimum capital requirement and net
asset value or any sum that may be determined by the
Board, and
(e)
has qualified management staff.
Application for registration
149.
(1) A person who desires to operate as a pension
fund manager of a scheme shall apply in writing to
the Board.
(2) The application shall be in a form prescribed by
the Board and be accompanied with the prescribed
fee.
Grant of application
150.
(1) The Board shall register an applicant to operate
as a pension funds manager within sixty days after
receipt of an application to operate as a pension
fund manager upon satisfying itself that the
applicant has fulfilled the conditions including the
payment of fees.
(2) The Board may write to the applicant within
thirty days after the receipt of the application if
not satisfied with the application and may request
the applicant to rectify any errors in the
application or to satisfy any pre-condition for the
registration within twenty-one days.
(3) the Board may register the applicant subject to
conditions or restrictions as it considers
appropriate and the Board may vary any condition or
restriction in relation to the registration by
notice to the pension funds manager.
(4) The Board shall register the applicant to
operate as a pensions fund manager where the
applicant rectifies the error or satisfies the pre-
conditions within the specified time.
Refusal to register
151.
Where an application for registration is refused,
the Board shall state the reasons for the refusal in
the notice to the applicant.
Dispute settlement
152.
An applicant who is dissatisfied with the Board's
refusal to register it to operate as a pension fund
manager may refer the matter for resolution through
an appropriate dispute resolution mechanism.
Investment policy
153.
(1) A trustee shall have a statement of investment
policy which shall be reviewed at intervals and on
occasions as may be determined by the Board .
(2) A statement of investment policy, in relation
to a trust scheme is a written statement of the
investment principles governing decisions about
investments for the purpose of the scheme.
(3) The trustee shall comply with prescribed
requirements, before preparing or revising a
statement of investment policy.
(4) A statement of investment policy shall be in the
prescribed form and include the
(a)
investment objectives,
(b)
policy as to the kind of securities and other assets
that may be acquired,
(c)
policy as to the balance between different kinds of
securities and other assets,
(d)
risk in implementing the investment policy, and
(e)
return expected in implementing the investment
policy.
(5) Where in the case of a trust scheme, a statement
of investment policy has not been prepared,
maintained, reviewed or revised or the trustee has
not complied with the obligation imposed on them
under subsection (3), the trustee is liable to a
penalty determined by the Board.
Fees of pension fund manager
154.
A pension fund manager shall be paid the fee agreed
with the trustee subject to the limits determined by
the Board through notices.
Pension fund custodians
Pension fund custodians
155.
At the commencement of this Act, pension fund assets
shall only be held by pension fund custodians
referred to as custodians registered by the Board.
Functions of custodians
156.
A pension fund custodian shall
(a)
receive contributions remitted by the employer under
this Act on behalf of the trustees;
(b)
notify the trustee within forty-eight hours of the
contributions from an employer;
(c)
hold pension fund and assets in trust for members;
(d)
settle transactions and undertake activities related
to the administration of pension fund investments
including the collection of dividends and related
activities;
(e)
report to the Board on matters related to the assets
being held on behalf of a trustee at periodic
intervals that the Board may determine;
(f)
undertake statistical analysis on the investments
and returns on investments with respect to pension
funds in their custody and provide data and
information to the trustee and the Board;
(g)
execute in favour of the trustee, relevant proxy for
the purpose of voting in relation to the
investments; and
(h)perform other functions as may be directed by the
Board.
Requirement for registration as custodian
157.
A person does not qualify as a custodian for the
purposes of this Act unless that person
(a)
is a body corporate;
(b)
is a bank, an insurance company or a non-bank
financial institution;
(c)
is a wholly owned subsidiary of a bank, an insurance
company or a non-bank financial institution;
(d)
is licensed by the Securities and Exchange
Commission as a custodian under the Securities
Industry Act, 1993 (P.N.D.C.L. 333); •
(e)
satisfies minimum capital requirement and net asset
value or a sum determined by the Board;
(f)
is independent of the trustee and pension fund
manager and all delegates of the trustee and pension
fund manager; and
(g)
has qualified management staff.
Conditions for registration
158.
An application for registration to act as a
custodian shall not be approved by the Board unless
the custodian company
(a)
issues a guarantee to the full sum and value
of pension funds and assets held by it or to be held
by it;
(b)
is a subsidiary of a qualified parent company who
shall issue
the guarantee;
(c)
undertakes to hold the pension fund assets to the
exclusive order of the trustee on trust for the
members as instructed by the trustee;
(d)
has never been a custodian of a fund which was
mismanaged or has been in distress due to a default,
either fully or partially, of the applicant.
Application for registration
159.
(1) A person who desires to act as a custodian of
pension fund shall apply to the Board for
registration in a form determined by the Board.
(2) The applicant shall pay the prescribed fee.
(3) The Board shall register the applicant within
sixty days after the receipt of an application upon
satisfying itself that the applicant has fulfilled
the preconditions including the payment of fee
required.
(4) Where the Board is not satisfied with the
application, the Board may, request the applicant to
rectify errors in the application in writing within
thirty days after the receipt of the application or
satisfy a pre-condition for the registration within
twenty-one days.
(5) The Board shall register or refuse the
registration upon the rectification of the error or
satisfaction of the pre-conditions within the
specified time.
(6) The Board may register an applicant subject to
conditions or restrictions as it considers
appropriate.
(7) The Board may vary a condition or restriction in
relation to the registration at any time by written
notice to the custodian .
(8) Where an application for a registration is
refused, the Board shall state the reasons for the
refusal in a notice to the applicant.
Dispute settlement
160.
An applicant who is dissatisfied with the Board's
refusal to register it, may refer the matter for
settlement through an appropriate dispute resolution
mechanism.
Fees of custodian
161.
A custodian shall be paid a fee as agreed with the
trustee and subject to the limits determined by the
Board.
Permitted expenditure from scheme funds
162.
A trustee shall not charge any expenditure or make
any deductions from the scheme fund other than those
prescribed by the Board or authorised under this
Act.
Maximum administrative charges
163.
The total fees, charges and expenses on the scheme
fund shall not exceed a maximum limit prescribed by
the Board.
Revocation of licence or cancellation of
registration
164.
(1) The Board may revoke the licence or cancel the
registration of a trustee,a pension fund manager or
custodian, if
(a)
the Board discovers that a statement was made in
connection with the application which the applicant
knew to be false or untrue,
(b)
the trustee, pension fund manager or custodian is
subject to insolvency proceedings or is likely to be
wound up or dissolved;
(c)
the conduct of affairs of the trustee, pension fund
manager or custodian does not conform with the
provisions of this Act or Regulations made under
this Act;
(d)
an event occurs which renders the trustee, pension
fund manager or custodian ineligible to manage the
pension funds or take custody of the pension fund,
or
(e)
the trustee, pension fund manager or custodian is in
breach of a condition attached to the licence or
registration.
(2) The Board shall give the trustee, pension fund
manager or custodian at least twenty-eight days
notice of its intention to revoke the
licence or cancel the registration and shall
consider representations made to it in writing by
the trustee, pension fund manager or custodian
within that period before revoking the licence or
cancelling the registration.
(3) The notice under subsection (2) shall be in a
prescribed form and specify the reasons for the
revocation of the licence or cancellation of the
registration.
(4) The revocation of the licence of a trustee, or
cancellation of the registration of a pension fund
manager or custodian does not limit the entitlements
of beneficiaries under the scheme.
(5) The Board shall, suspend the power of the
respective board of the trustee, pension fund
manager or custodian over
(a)
the pension fund and assets held or administered by
the company; and
(b)
appoint administrators with relevant qualifications
to superintend the transfer of the assets and funds
held or administered by the company and exercise the
powers of
the board of trustees where necessary in accordance
with this Act,
in the revocation order.
(6) The Board shall notify the public within seven
days, through the publication in the Gazette,
the electronic and print media in circulation of the
list of trustees, pension fund managers and
custodians whose licences or registration have been
revoked or cancelled.
Publication of list of trustees, pension fund
managers and custodians
165.
(1) The Board shall, publish a list of trustees,
pension fund managers and custodians licensed or
registered by it at the end of each calendar year.
(2) The publication shall be in a manner that the
Board considers appropriate.
Proper books of accounts and audit
166.
(1) A trustee, pension fund manager or custodian
licensed or registered under this Act shall cause
proper books of accounts and records to be kept in
relation to the scheme in a form that the Board may
determine.
(2) A trustee, pension fund manager or custodian
shall, not later than four months after the end of
the year cause its accounts to be audited by
qualified external auditors and prepare an audit
report, which shall include a statement on the
extent of compliance with the
(a)
provisions of this Act and Regulations made under
it,
(b)
trustee's duties under the trust deed and under this
Act, and
(c)
the scheme's investment objective and other
requirements
under this Act.
(3) Without limiting the scope of subsection (2),
the Board may order technical audits of the
facilities, equipment, resources and accounts of a
trustee, pension fund manager or custodian to be
conducted as the Board considers appropriate.
Annual reports
167.
(1) A trustee, pension fund manager or custodian
shall submit an annual report to the Board within
four months after the end of each financial year to
give details of its activities in relation to the
scheme in the preceding year.
(2) A report under subsection (1) shall include the
audit reports referred to in section 166 (2) and any
other reports that the Board may prescribe.
Reporting obligations of auditors, trustees, pension
fund managers and custodians
168.
(1) An external auditor appointed by a trustee,
pension fund manager or custodian shall, in the
discharge of duties report to the Board any
(a)
extreme situation such as evidence of imminent
financial collapse of the trustee, pension fund
manager or custodian;
(b)
evidence of an event or occurrence which has led or
is likely to lead to material diminishing of the net
assets of the trustee, pension fund manager or
custodian;
(c)
evidence of a significant weakness in the accounting
and other records or the internal control systems of
the trustee, pension fund manager or the custodian;
(d)
report or statement on financial matters made by the
management of the trustee, pension fund manager or
custodian which is misleading;
(e)
fraud or other misappropriation which the auditor
believes has been committed by the directors or the
management of the trustee or pension fund manger or
custodian or has evidence of an attempt by the
directors or senior management to commit fraud or
misappropriation; or
(f)
event or occurrence which affects or is likely to
affect the auditor's confidence in the competence of
the directors or the senior management to conduct
the business of a trustee, pension fund manager or
custodian in a prudent manner.
(2) An auditor who acts in good faith in response to
a request made by the Board, by giving information
or opinion on a matter or situation to the Board is
not liable for breach of duty.
(3) An auditor of a trustee, pension fund manager or
custodian who contravenes or negligently fails to
comply with the provisions of subsection (1) commits
an offence and is liable on summary conviction to a
fine of two hundred and fifty penalty units or to a
term of imprisonment of not more than six months or
to both.
(4) A trustee, pension fund manager or custodian
shall
(a)
ensure that the pension fund managed is held in
accordance with the provisions of this Act or
regulations made under the direction of the Board;
(b)
take reasonable care to ensure that the management
or safe keeping of the pension fund is carried out
in the best interests of the members;
(c)
report to the Board, acts as regards the pension
funds which are likely to adversely affect the
rights of the members under the scheme; and
(d)
report to the Board the failure of an employer to
remit contributions due or unpaid for more than
fourteen days.
Specific obligation ofthe custodian
169.
(1) A custodian shall maintain pension fund and
assets in custody subject to the directions of the
trustee.
(2) A custodian shall not utilise pension fund or
assets in its custody to meet its own financial
obligation.
Report on frauds, forgeries, theft or other acts of
dishonesty
170.
A trustee, pension fund manager or custodian shall
submit to the Board reports of any fraud, forgery,
theft or other acts of dishonesty that occurs in its
establishment.
Notification of dismissed staff
171.
(1) A trustee, pension fund manager or custodian
shall notify the Board of a staff who is dismissed
or whose appointment is terminated on grounds of
fraud, forgery, theft or other acts of dishonesty.
(2) The Board shall maintain a list of persons who
have been dismissed, whose appointment have been
terminated or advised to retire on grounds of fraud
and shall circulate the list to trustees, pension
fund mangers and custodians.
Prohibited employment
172.
A trustee, pension fund manager or custodian shall
not employ a person whose name is on the list
maintained by the Board under section 171 unless
with the prior approval of the Board.
Penalty for non-compliance
173.
(1) A trustee, pension fund manager or custodian who
fails to comply with sections 170, 171 or 172 of
this Act shall pay a penalty of an amount of not
less than two hundred and fifty penalty units to the
Board for each violation.
(2) In addition to the penalty the Board may
revoke the licence of the trustee, pension fund
manager or custodian in the case of persistent
contravention.
Prohibited transactions
174.
(1) A trustee or pension fund manager shall not
(a)
hold pension fund assets, or
(b)
keep pension fund assets with a custodian where the
trustee or pension fund manager has a business
interest, shares or any other interest in that
custodian.
(2) An employee of the trustee or pension fund
manager shall not engage in a business transaction
or trade in any manner with the trustee or pension
fund manager as a counterpart or with a subsidiary
in relation to pension fund or assets.
Investment of Pension Fund
Investment of pension fund
175.
A trustee or pension fund manager shall invest
pension contributions received under this Act in
order to obtain safe and fair returns on the amount
invested.
Permitted investments
176.
Subject to guidelines that the Board may issue,
pension fund and assets shall be invested in any of
the following:
(a)
bonds, bills and other securities issued or
guaranteed by the Bank of Ghana or the Government of
Ghana;
(b)
bonds, debenture, redeemable preference shares and
other debt instruments issued by corporate entities
and listed on a stock exchange registered under the
Securities Industry Act, 1993, (P.N.D.C.L. 333)
(c)
ordinary shares of limited companies listed on a
Stock Exchange and registered under the Securities
Investment Act 1993 (P.N.D.C.L. 333) with good
records, declared and paid dividends in the
preceding five years;
(d)
bank deposits and bank securities;
(e)
investment certificates of closed-end investment
fund or hybrid investment funds listed on a Stock
Exchange registered under the Investments and
Securities Industry Act, 1993 (P.N.D.C.L. 333) with
a good record of earning;
(f)
units sold by open-end investment funds or
specialist openend investment funds listed on the
stock exchange recognised by the Board;
(g)
bonds and other debt securities issued by listed
companies;
(h)
real estate investment; and
(i)
other forms of investment, that the Board may
determine.
External investments
177.
(1) A trustee or pension fund manager may invest
pension fund assets in units of investment funds
except that investment fund may only be invested in
the categories of investments specified in section
176 of this Act.
(2) The Board may recommend to the President through
the Minister responsible for Finance for approval,
the investment of pension fund assets outside the
country except that any amount to be invested
outside, shall not exceed a percentage of total
funds available for investment as determined by the
Board.
(3) External investments shall be subject to the
Bank of Ghana foreign exchange rules.
Restriction on investments
178.
(1) A trustee or pension fund manager shall not
invest pension fund assets in the shares or any
other securities issued by
(a)
the trustee or pension fund manager or custodian, or
(b)
a shareholder of the trustee or pension fund manager
or custodian.
(2) A privately-managed pension fund shall not
(a)
hold more than ten percent of any class of security
issued by a single issuer;
(b)
have more than ten percent of its total assets in
the securities issued by a single issuer other than
that permitted for government and other public
securities;
(c)
make short sales; or
(d)
borrow for investment purposes.
Restriction on sale, purchase or disposal of pension
fund assets
179.
A trustee or a pension fund manager shall not
(a)
sell pension fund assets to
(i) itself or any shareholder, director or affiliate
of the trustee or pension fund manager,
(ii) an employee of the trustee or pension fund
manager;
(iii) the spouse of the persons referred to in
paragraphs (i) and (ii); or
(iv) affiliates of any shareholder pension fund
assets to the order of the trustee or pension fund
manager;
(b)
purchase any pension fund assets; or
(c)
apply pension fund assets under its management
through loans and credits or as collateral for loan
taken by a person. <
Additional restrictions on investment
180.
The Board may, impose additional restrictions by
regulation on
investments by trustees and pension fund managers in
order to protect
the interest of beneficiaries of a scheme.
Penalty for non-compliance
181.
(1) A trustee or pension fund manager who fails to
comply with a provision of this Part unless
otherwise provided in this Act is liable to such
penalty as may be prescribed.
(2) In addition to the penalty specified under
subsection (1) the trustee or the pension fund
manager shall forfeit the profit from the investment
to the beneficiaries of the scheme and if there is a
loss as a result of the investment the trustee and
the pension fund manager shall be surcharged with
the loss.
PART FOUR-GENERAL PROVISIONS
Supervision and examination
Supervision and examination
182.
(1) The Board shall conduct an inspection,
examination or investigation of trustees, pension
fund managers or custodians at least once in a year
to determine whether or not the provisions of this
Act or Regulations made under it, are being complied
with.
(2) Without limiting the scope of subsection (1),
the Board may authorise one or more of its officers
or agents to inspect, examine or investigate
activities of
(a)
the basic national social security scheme,
(b)
a trustee, pension fund manager, custodian, an
employer or a corporate body.
Appointment of examiners
183.
The Board may appoint its officers, agents or other
qualified persons as examiners to discharge duties
under this Act.
Power of examiners
184.
(1) An examiner shall in the performance of
functions under this Act
(a)
inspect, examine or investigate the books,
activities and affairs of a person or body dealing
with pension fund;
(b)
have access at any time during working hours to the
books, accounts, documents and vouchers of a
trustee, pension fund manager, custodian or any
other person or corporate body that deals with
pension fund;
(c)
request from a director, manager, an officer of a
trustee, a pension fund manager, custodian or firm,
any information or explanation that the Board
considers necessary to enable it determine whether
or not the provisions of this Act or Regulations
made under it are being complied with.
(2) In exercising its powers under subsection
(1), the examiners shall exercise reasonable care to
avoid undue hindrance in the day-to-day activities
of a trustee, pension fund manager, custodian or any
other person or corporate body.
Reports of the Board
185.
(1) The Board shall forward a copy of its report to
the trustee, pension fund manager or custodian or
any other person or body corporate, on completion of
an examination or investigation, and instruct that
the report be placed before the governing board of
the trustee, pension fund manager, custodian or any
other person or corporate body.
(2) The governing body of the trustee, pension fund
manager, custodian or any other body corporate
shall, within thirty days after receipt of the
report convene an extraordinary meeting to consider
the report and submit its reactions and proposals
for implementing any recommendations to the Board.
(3) A trustee, pension fund manager, custodian or a
person or corporate body who fails to comply with
the provisions of subsection (2) commits an offence
and is liable on summary conviction to a fine of not
more than fifty penalty units for each day that the
offence continues.
(4) Where the offence continues for more than thirty
days, the Board may, suspend the licence or
certificate of registration of the trustee, pension
fund manager or custodian in addition to the fine.
Power of the Board to order a special examination
186.
The Board may order a special examination or
investigation of the books and affairs of a trustee,
pension fund manager or custodian where it suspects
or is satisfied that
(a)
it is in the public interest to do so;
(b)
the trustee, pension fund manager or custodian
(i) has been conducting its business in a manner
detrimental to the interest of beneficiaries of the
scheme;
(ii) does not have sufficient assets to cover its
liabilities; or
(iii) has contravened a provision of this Act,
(c)
an application has been made to the Board by
(i) a director, manager or shareholder of the
trustee or the pension fund manager or custodian to
examine its company;
(ii) a beneficiary of an occupational pension scheme
or provident fund or personal pension scheme;
(iii) a trustee or a pension fund manager to examine
the custodian of the pension fund assets that the
trustee or pension fund manager is managing; or
(iv) a custodian to examine the trustee for whom it
is holding pension fund assets.
Power of the Board to gather information
187.
(1) The Board shall in the performance of its
functions under this Act or any other enactment,
request by notice that
(a)
an employer,
(b)
trustee, pension fund manager or custodian; or
(c)
any other service provider or institution connected
with pension matters;
submit specified documentation information in
relation to its activities after giving reasonable
notice to that person.
(2) The Board shall specify the place and period
within which • the information or documents are to
be submitted.
Search warrant
188.
(1) A magistrate may issue a search warrant where
the magistrate is satisfied on reasonable grounds
and on information on oath or affirmation given on
behalf of the Board that there are grounds to
believe that
(a)
a person has failed to comply with a request of the
Board within the time period specified in the notice
and that required document and information has not
been given to the Board;
(b)there are documents or information required in
respect of which a notice has been issued by the
Board but that person may not comply with the
notice, or may remove, tamper or destroy the
documents or information requested for by the Board;
or
(c)
an offence has been, or is being, committed by a
person, and that there are documents or information,
which may be removed, tampered with or destroyed in
relation to the offence.
(2) A warrant issued under subsection (1) shall
authorise a named representative of the Board, in
addition to a police officer and any other person
named in the warrant to
(a)
enter the premises specified in the warrant at a
reasonable time within seven days from the date of
the warrant,
(b)
search the premises and take possession of any
document or information that appears to be document
or information of a type in respect of which the
warrant was issued or take steps necessary for
preserving or preventing interference with
the document or information;
(c)
take copies of, or extracts from a document or
information that appear to be of a type in respect
of which the warrant was issued,
(d)
require a person on the premises to provide an
explanation in relation to a document or information
that appears to be of a type in respect of which the
warrant is issued or state where the document or
information may be found; and
(e)
use reasonable force that may be necessary to retain
possession of a document unless the Court orders
otherwise.
(3) Except as provided by a Court, where the Board
takes possession of a document, it shall retain it
for a period of three months but where proceedings
for a criminal offence is commenced against a
person, the document shall be retained until the
conclusion of the proceedings.
Disclosure of information
Privileged document and information
189.
(1) A person is not required to disclose information
or produce a document if the information or document
is a privileged matter in accordance with the rules
of privilege in legal proceedings.
(2) For the purpose of this section, information is
privileged if it is communicated to a lawyer by
(a)
a client or a representative of the client for the
purpose of receiving legal advice,
(b)
a person or a representative of that person to seek
legal advice from a Lawyer, or
(c)
a person in contemplation of or in connection with
legal proceedings;
(3) Information is not privileged if it is
communicated or given with a view to furthering a
criminal purpose.
(4) Despite subsection (1), a lawyer may be
required under this Act to provide the name and
address of a client where necessary.
Supply of information and documents to foreign
regulatory authorities
190.
(1) A foreign regulatory authority may request the
Board in writing to provide it with assistance in
connection with the exercise of its regulatory
functions.
(2) The Board may disclose information or provide
documentation in its possession to the foreign
regulatory authority in accordance with this
section.
(3) The Board shall not issue a notice to disclose
information or provide documentation to a foreign
regulatory authority unless it is satisfied that the
information or documentation to which the request
relates is reasonably required by the foreign
regulatory authority for the purposes of its
regulatory functions.
(4) The Board may for the purposes of this section
take into account, in particular
(a)
whether reciprocal treatment would be given to the
Board in the country or territory of the foreign
regulatory authority;
(b)
whether the request relates to the breach of a law
or other requirement which does not have a corollary
in this country or involves the assertion of a
jurisdiction not recognised by the country;
(c)
the seriousness of the case and its importance to
persons in this country; and
(d)
whether it is otherwise appropriate in the public
interest to provide the assistance sought.
(5) For the purpose of subsection (4) (a),
the Board may request the foreign regulatory
authority, making the request to give a written
undertaking, to give reciprocal treatment to the
Board.
(6) Where a foreign regulatory authority fails to
comply with a requirement of the Board the Board may
refuse to provide the assistance sought by the
foreign regulatory authority.
(7) The Board may refuse a request from a foreign
regulatory authority if
(a)
it is satisfied that information given to the
foreign regulatory authority will be used in
criminal proceedings against the person giving the
information, other than proceedings for an offence
under this Act or for an offence of perjury or a
similar offence; and
(b)
the foreign regulatory authority undertakes to
contribute towards the cost of exercising the powers
of the Board where the Board considers it
appropriate.
(8) The Board shall not exercise its powers under
subsection (1) unless it is satisfied that the
information or documentation provided to the foreign
regulatory authority is not subject to privileges
under this Act.
Publishing of reports
191.
(1) The Board may publish in a form and manner that
it considers fit, reports and results of an
investigation.
(2) For the purpose of the law of defamation, the
publication of any matter by the Board shall be
absolutely privileged.
Register of schemes
192.
(1) The Board shall compile and maintain a register
of registered occupational pension schemes,
provident fund schemes and personal pension schemes.
(2) In respect of each registered scheme, the Board
shall record in the register the registered
information most recently provided to the Board in
respect of the scheme.
(3) Where a scheme has been a registered scheme, but
has been, or is treated as being wound up, or ceased
to be a registered scheme, the Board shall maintain
the most recent information in the register in
respect of that scheme.
(4) Information in the register shall be recorded in
a manner that the Board considers appropriate
including, the use of a device or facility that
(a)
records or stores information in magnetic electronic
form; and
(b)
permits the information to be inspected or
reproduced in legible and useable form.
Inspection of registers and information
193.
(1) Subject to subsection (2), a person is entitled
to
(a)
inspect the registers and records kept by the Board
that are designated as public records, and
(b)
request the Board to give a copy or certified copy
of the report, or extract from a document that the
person is entitled to inspect on payment of the
prescribed fee.
(2) In respect of documents filed or kept in
electronic form, the rights granted under subsection
(1) extend only to reproductions of those documents
in useable written form produced in the manner that
the Board considers appropriate.
(3) A copy or reproduction of or extracts from a
document or record kept and certified by the Board
is admissible in evidence in legal proceedings to
the same extent as the original document.
Electronic filing of documents
194.
(1) The Board may by Regulations provide for a
system to enable documents required or permitted to
be filed with the Board under this Act to be filed
in electronic form.
(2) A system for the filing of documents in
electronic form shall provide for the
(a)
criteria for authorising persons to file documents
III electronic form, and
(b)
security and authentication of the documents filed.
Offences, penalties and enforcement
Misappropriation of pension funds
195.
(1) A trustee, pension fund manager, custodian or
director who misappropriates pension funds commits
an offence and is liable on summary conviction to a
fine of an amount equal to three times the amount
misappropriated or to imprisonment for a term of not
less than ten years or to both the fine and
imprisonment.
(2) A director or officer of a trustee, pension fund
manager or custodian is personally liable for any
offence committed under this Act.
Offences relating to fraud
196.
A trustee, pension fund manager or a custodian who
fails to comply with section 170 commits an offence
and is liable on summary conviction to a fine of two
thousand penalty units or a term of imprisonment of
not more than two years or to both.
Power of the Board to apply additional sanctions
197.
(1) Despite any other law and without limiting the
penalties stipulated under this Act, the Board
shall, remove from office a director or officer of a
trustee, pension fund manager or custodian who
contravenes sections 170 of this Act in addition to
the penalties stipulated under this Act.
(2) The Board may exercise the power conferred on it
under subsection (1) in cases of misconduct or
dishonesty.
Offence by body corporate
198.
Where an offence under this Act is committed by a
body corporate, the body corporate and each director
or officer is deemed to have committed that offence
and shall be prosecuted but a person shall not be
deemed to be guilty of the offence if the person
proves that the offence was committed without that
persons knowledge or that that person exercised due
diligence to prevent the commission of the offence.
Penalty for refusing to give information
199.
An employer, trustee, pension fund manager,
custodian or a person or body corporate who
(a)
refuses to produce any book, accounts, document or
voucher
(b)
refuses to give information or explanation, or
(c)
with intent to defraud produces a book, accounts,
documents or voucher or gives information or
explanation which is false or misleading
commits an offence and is liable on summary
conviction to a fine of not
more than two hundred and fifty penalty units or a
term of imprisonment
not exceeding six months or to both.
General penalty
200.
A person who contravenes a provision of this Act for
which a penalty is not provided is liable on summary
conviction to a fine of not more than one thousand
penalty units or to a term of imprisonment of not
less than one year or to both.
Order to comply
201.
Where a person is convicted of an offence under this
Act or the Regulations, the Court may order that
person to comply with the provision of this Act or
the Regulations for which that person has been
convicted in addition to any punishment it may
impose.
Resolution of disputes
202.
(1) An employee or beneficiary of a scheme who is
dissatisfied with a decision of the trustee, pension
fund manager or custodian may request the Board in
writing to review the decision in accordance with
this Act or any Regulations made under this Act.
(2) A copy of each request shall be served on the
relevant trustee, pension fund manager or custodian.
(3) The Board in exercising powers under this
section shall,
(a)
conduct proceedings in a manner that avoids delays
in the resolution of disputes, and
(b)
dispose of any matter before it within three months
from the date of receipt of the request.
Aggrieved persons - dispute settlement
203.
A person aggrieved by an action or a decision of the
Board may refer the matter for settlement through an
appropriate dispute resolution mechanism.
Effect of settlement
204.
A settlement agreed to by the parties under this Act
is binding on them and is enforceable by the courts.
Pensions Adjudication Committee
205.
(1) There is established by this Act a Pensions
Adjudication Committee referred to as the
Adjudication Committee.
(2) The Pensions Adjudication Committee consists of
seven members, three of whom shall constitute a
panel for the determination of a petition or a
complaint.
(3) The object of the Adjudication Committee is to
hear and determine a petition or complaint made by a
member of a scheme regulated by the Board or
referred to it by the Board or, by a Scheme.
(4) A petition or complaint includes
(a)denial or refusal of a benefit,
(b)
quality or quantity of benefit,
(c)
wrong computation of benefit,
(d)
unreasonable delay in the processing and payment of
benefits, and
(e)
any other related matters.
(5) The Adjudication Committee shall determine
complaints before it in accordance with rules that
may be made by the Board with the approval of the
Minister.
General indemnity
206.
The Board, a member of the Board, employee or agent
of the Board is not liable for acts done or omitted
in the discharge of a duty, the exercise of a power
or the performance of a function under this Act or
any other enactment that assigns functions to the
Board if the act or omission was done in good faith:
Miscellaneous provisions
Regulations
207.
(1) The Minister, on the recommendations of the
Board may, by legislative instrument, make
regulations for the effective implementation of this
Act.
(2) Without limiting the scope of subsection (1) the
Minister shall make regulations to
(a)
provide for approved trustees and applicants for
approval to give undertaking to the Board and to
enter into arrangements to provide insurance against
the risk of loss
through malfeasance or other illegal conduct;
(b)
require approved trustees of registered schemes to
provide information to scheme members and prescribe
the kind of information that is to be provided to
them;
(c)
provide for the payment of accrued benefits to or in
respect of scheme members and the transfer of
accrued benefits from one registered scheme to
another or from one account in a registered scheme
to another;
(d)
provide for the preservation of the accrued benefits
of scheme members until the occurrence of a
specified event including, but not limited to, the
retirement, death or total incapacity of scheme
members;
(e)
provide for the formulation of proper accounting
systems including the keeping of proper accounting
records as regards registered schemes;
(f)
prescribe requirements for trustees with respect to
the keeping of scheme member's accounts;
(g)
permit trustees to deduct fees for administrative
expenses from scheme members' accounts;
(h)
provide for the auditing of the accounting records
and financial statements of approved trustees and
registered schemes;
(i) prescribe the duties of auditors including the
duty to report on specified matters to the Board in
specified circumstances;
(j)
provide for the engagement or appointment of service
providers by the approved trustee of a registered
scheme to provide services for the purpose of
the scheme and for the delegation of the trustee's
functions in relation to the scheme to the service
provider;
(k)
prescribe the duties of service providers and other
persons engaged or appointed by the approved trustee
of a registered scheme to provide services for the
purpose of the scheme including the duty to report
on specified matters to the Board;
(I)
provide for requirements to be complied with in
respect of funds of registered schemes, including
(i) the separation of the funds and other assets of
a registered scheme from other funds and assets that
are beneficially owned by employers who are
participating in the scheme;
(ii) the application of funds and other assets of a
registered scheme only for the purpose of the
scheme; and
(iii) rules that the funds and other assets of a
registered scheme shall not subject to any charge,
pledge, lien, mortgage or other encumbrance, except
in circumstances specified in the rules of the
scheme or by the Board,
(m)require approved trustees to delegate investment
management of scheme funds to independent pension
fund managers registered with the Board;
(n)provide for arrangements for approved trustees of
registered schemes in respect of scheme assets to be
held by custodians and the qualifications of
custodians;
(0)
provide for approved trustees of registered schemes
to maintain specific internal control procedures for
the schemes;
(p)
require persons to lodge returns with the Board
containing specified kinds of information, relevant
to the performance of the functions of the Board;
(q)
provide for
(i) the service or notification of documents;
(ii) the voluntary winding up of employer sponsored
schemes, and
(iii) other matters that are incidental to the
achievement of the objects of this Act.
(3) A regulation made under this Act may
(a)
apply generally or be limited in application by
reference to specified exceptions or factors;
(b)
apply differently according to different factors of
a specified kind;
(c)
authorise any matter or thing to be determined,
applied or regulated by a specified person;
(d)
prescribe fees including fees for the granting of
approvals for the purposes of this Act;
(e)
authorise the Board to charge for a service provided
by the Board on a cost recovery basis;
(f)
apply, adopt or incorporate by reference, with or
without modifications, any publication, either in
force at the time of publication or as in force from
time to time;
(g)
prescribe offences in respect of contraventions of
the regulations;
(h)
provide for the imposition of a fine,
(4) Despite the Statutory Instruments Act, 1959 (No.
52) the penalty for the contravention of Regulations
shall be a fine of not more than two thousand, five
hundred penalty units.
Operating guidelines and codes of practice
208.
(1) The Board may issue guidelines for the purpose
of giving guidance to
(a)
approved trustees,
(b)
pension fund managers,
(c)
custodians,
(d)
other service providers,
(e)
the basic national social security scheme,
(f)
the Controller and Accountant General Department,
and
(g)
participating employers and their workers,
self-employed persons, and other persons concerned
with this Act.
(2) A guideline may
(a)
consist of a code, standard, rule, specification or
provision related to occupational pensions,
provident fund or personal pension schemes or a
class of these schemes;
(b)
apply, incorporate or refer to a published or
amended document in force, and
(c)
require persons including persons belonging to a
class to give specified information or documents to
the Board.
(3) The Board shall publish the guidelines in the
Gazette or in another print media determined by
the Board.
(4) Where the Board amends or revokes a guideline,
it shall publish it in the Gazette or in
another print media determined by the Board.
(5) A person shall not incur a civil or criminal
liability for the contravention of a guideline
issued under this section.
(6) Despite subsection (5) the Board may impose the
following sanctions for deliberate refusal to apply
the guidelines:
(a)
imposition of a fine;
(b)
suspension or revocation of a licence;
(c)
suspension or cancellation of registration; or
(d)
other sanctions determined by the Board.
(7) In any legal proceedings, where the court is
satisfied that a guideline is relevant to the
determination of a matter
(a)
the guideline shall be admissible in evidence, and
(b)
proof as to whether or not a person contravened a
guideline may be relied on by any party to the
proceedings to establish or negate the matter.
Exemption of pension funds from attachment and
liquidation process
209.
(1) Despite the provisions of any other enactment,
pension funds or assets kept with a custodian under
this Act shall not be used for the payment of claims
of a custodian's creditors in the event of
liquidation of the custodian.
(2) In the case of winding up, liquidation or
cessation of business of the custodian or any or all
of its shareholders, the pension funds or assets in
the custody of the custodian shall not be seized or
be subject to execution of a judgment debt or from
transfer to another custodian .
Act 592 amended
210. Section 60 subsection (3), (4) and (5) of the
Internal Revenue Act, 2000, Act 592 is hereby
amended to reflect the new contribution rates
imposed under section 3 of this Act.
Interpretations
211. In this Act, unless the context otherwise
requires
"accounting records" includes books, vouchers,
invoices, receipts, orders for the payment of money,
bills of exchange, cheques, promissory notes and
such working papers and other documents that are
necessary to explain the methods and calculations by
which accounts are made up and other documents as
may be prescribed;
"accrued benefits" in relation to a registered
scheme, means the amount of each scheme member's
beneficial interest in the registered scheme at any
time, including sums derived from the contributions
made by or in respect of that scheme member,
together with the income or profits arising from any
investments thereof, but taking into account any
losses in respect thereof;
"active member" means a member of a pension scheme
who is currently accruing benefits under that scheme
in respect of current service;
"actuary" means a person professionally trained in
the technical and mathematical aspects of insurance,
pensions and related fields and who estimates how
much money must be contributed to a pension fund
each year in order to provide the benefits that will
become payable in the future;
"annual report" means the method by which the
trustees of a pension scheme communicate financial
and other information about the scheme to members,
employers and other interested parties. It is used
in particular to describe the specific information
which is required to be made available by trustees
in relation to each scheme year under the Disclosure
Regulations and must include a copy of the audited
accounts and of the latest actuarial statement and
other information specified including a financial
review by the trustees and an investment report. It
may contain additional information not required by
the regulations;
"annuity" means a series of payments, which may be
subject to increases, made at stated intervals until
a particular event occurs. This event is most
commonly the end of a specified period or the death
of the person receiving the annuity;
"approved trustees" means a company or an individual
approved by the Board as a trustee in accordance
with this Act and, when used in relation to a
registered scheme that is administered by two or
more approved trustees, it means the trustees
jointly and severally;
"beneficiary" means a person entitled to benefit
under a pension scheme or who will become entitled
on the happening of a specified event;
"Authority" means the National Pensions Regulatory
Authority established under section 5 of this Act.
"Board" means the govemingbody of the Authority
established
under section 8 of this Act;
"Board of Trustees" means the governing body of the
Trust established under section 35 of this Act;
"CAP 30 Pension Scheme" means a pension scheme
operated under the Pensions Ordinance, No. 42,
Chapter 30 of 1950, for
(a) pensionable public servants in the civil
and other public services, who have been in the
service before 1st January, 1972; and
(b)
public servants who have been exempted by law from
participation in the Social Security Pension Scheme,
i.e. the Judiciary, Legal Service, Police Service,
Fire
Service, Prison Service, Immigration Service, the
Bureau of National Investigation and the Research
Unit of the Ministry of Foreign Affairs.
"contributory scheme" means a scheme to which both
employers and employees contribute. Under certain
contributory plans participants may be required to
contribute as condition of eligibility;
"Chief Executive" means the Chief Executive Officer
of the Authority appointed under section 16 (1);
"corporate trustee" means a company which acts as a
trustee;
"custodian" means a person whose business it is to
keep custody of cash, securities and documents of
title to assets belonging to others;
"defined benefit scheme" means a pension scheme
providing a defined benefit formula for calculating
benefit amounts without regard to contributions;
"defined contribution scheme" means a pension scheme
in which the contributions are made to an individual
account for each participant. The retirement benefit
is dependent
upon the investment experience and in the case of
profit sharing plans, amounts which may be allocated
to the amount owing to forfeitures by terminating
employees;
"death benefit" means benefit payable to the spouse
or dependants of a deceased scheme member, or to
that member's estate, on death in service or after
retirement. It
may consist of a lump sum, a return of contributions
or a pension;
"dependants" include
(a)
members of the family of a member as specified in
the Schedule, and
(b)
other persons who the member is obliged to maintain
under the Children's Act, 1998 (Act 560) or
otherwise and who were dependent on the earnings of
the member at the time of death of the member;
"early retirement age" means an age defined by the
terms of a pension plan which is earlier than normal
retirement age, at which a participant may receive
an immediate, possibly reduced, pension under the
plan;
"eligibility" means the conditions which must be met
for a person to be a member of a scheme or to
receive a particular benefit and may relate to age,
service, status and type of employment;
"employer" means
(a)
the owner of an establishment or the person who, or
the Board which, has the ultimate control over the
affairs of the establishment, and where such affairs
are entrusted to a manager, managing director or
managing agent, such manager, director or agent;
(b)
in any other case, the person with whom the worker
entered into a contract of service or apprenticeship
and who is responsible for the payment of his
salary;
"employer sponsored scheme" means a single employer
scheme whose membership is limited to the employees
of the sponsoring company and only its associated
companies;
"establishment" means any office, shop, factory,
mine, plantation, or any other place where persons
are employed on salary for work or business of any
kind;
"existing scheme" means a private or company
pension, provident fund, superannuation scheme or
gratuity scheme set up in respect of employees;
"fiduciary duties" means duties owed by one person
to another to whom the first person the fiduciary,
stands in a position of trust. The fiduciary is not
permitted to profit from the
fiduciary's position and owes undivided loyalty to
the other party and must avoid conflicts of interest
unless otherwise authorised by the other party after
full disclosure;
"formal sector" means business units which are
incorporated or registered, and are normally
subjected to regulation;
"funding" means a systematic program under which
contributions are made into a pension fund and
assets accumulated in order to pay pension benefits;
"fund manager" means an individual or bod/to which
the investment of the whole or part of the assets is
delegated by the trustees in accordanc with the
provisions of the scheme documentation;
"group personal pension scheme" means an arrangement
made for the employees of a particular employer to
participate in a personal pension scheme on a
grouped basis not a separate scheme; merely a
collecting arrangement;
"independent trustee" means an individual or
corporate body with no direct or indirect
involvement with the pension scheme, sponsoring
employer, or members, other than
performing the duties of the trustee;
"informal sector" refers to production units which
are engaged in legitimate economic transactions and
are normally operated at a low level of
organisation, with little or no
division between labour and capital which operates
on a small scale;
"interim trust deed" means a form of trust deed
commonly used to establish a pension scheme on
broadly stated terms leaving the detailed provisions
and the rules to be provided later by a definitive
trust deed;
"investment" means the process by which
contributions and net income are used to increase
the value of pension fund assets by means of cash
deposits, the purchase and sale of equities, fixed
interest stocks, bonds, property and other
authorised investments;
"investment policy" means the periodic decisions
regarding the types and proportions of assets in
which a pension fund is invested;
"liabilities" means amounts which a pension scheme
has an obligation to pay now or in the future. The
amounts may not be immediately ascertainable and
some liabilities may
be dependent on the occurrence of future events;
"master trust scheme" is a multiple-employer scheme
whose membership is open to employees of more than
one employer, self-employed persons and persons with
accrued benefits transferred from other schemes;
"member" means a person who has been admitted to
membership' of a pension scheme and is entitled to
benefit under the scheme;
"Minister" means the Minister responsible for
pensions;
"non-contributory pension scheme" means a scheme in
which the employer pays the entire cost of the
pension, with the employee not contributing.
"normal retirement age" means the age, as
established by a pension scheme, when full benefits
can be received.
"notice" means notice in writing;
"occupational pension scheme" means a pension scheme
offered through an individual's employment to
private or public sector workers. Benefits are
generally paid as lump sum, but could also be paid
as an annuity or a combination of lump sum and
annuity;
"organised labour" means an association or union
formed by workers the principal purpose of which is
to promote their economic and social interest and
which is registered under the Labour Act, 2003 (Act
651);
"past service" means service before a given date or
service before entry into the pension scheme;
"past service benefit" means a benefit granted for
past service;
"pension fund assets" means assets which
collectively constitute
a pension Fund;
"pension fund" means an investment fund within the
Pension Scheme which is intended to accumulate
during an individual working life from contributions
and investment
income, with the intention of providing income in
retirement from the purchase of an annuity or in the
form of a programmed withdrawal, with the possible
option of an additional tax free cash lump sum being
paid to the individual;
"pension scheme" means an employee benefit scheme
which provides retirement benefits by the
establishment of a trust fund or the purchase of
insurance or annuity contracts or a combination of
both and benefits may be paid either as an annuity
or as a lump sum;
"pensioner" means a person who is currently
receiving a pension from a pension scheme;
"premises" includes a vehicle, vessel or aircraft;
"prescribe" means prescribed by regulations made
under this Act;
"preserved benefits" means benefits arising on an
individual ceasing to be an active member of a
pension scheme, payable at a later date;
"President" means the President of the Republic of
Ghana;
"private pension scheme" means pension schemes
established by private in contrast to governmental,
agencies, including commercial, industrial, labour
and service organizations, non-profit organizations,
and non-profit religious, educational, and
charitable institutions;
"Provident Fund"
means a fully funded, defined contribution scheme in
which funds are managed privately and benefits paid
as lump sum to the employee or his dependants in
case of death. In some cases it is possible for the
employee to draw income prior to retirement to meet
specific needs;
"retirement" means the attainment of the statutory
retirement age, or on voluntary retirement;
"registered scheme" means an occupational pension
scheme or provident fund scheme registered under
section 131 as an employer sponsored scheme or a
master trust scheme or registered under section 13 7
as personal pension scheme;
"salary" includes the emoluments which are earned by
a worker while on duty in accordance with the
express or implied terms of the contract of
employment or apprenticeship, and which are paid or
payable in cash to the worker at fixed or
determinable intervals of time
(a)
in respect of normal periods of work to be per-
formed by the worker;
(b)
where payment is calculated in relation to set
tasks, in respect of the number of tasks completed
by the worker; and
(c)
where payment is calculated in relation to the
volume of work done, in respect of the volume
completed by the worker, emoluments earned by the
worker or
leave, any cost of living for prescribed allowance
but does not include any presents made by the
employer, value of any food concession, house rent
allowances, overtime allowance, travelling
allowance, bonus, commission, or any other similar
allowance
payable to the worker;
"Scheme" means the Contributory Three-tier Pension
Scheme established under section 1 of this Act;
"scheme member" in relation to a registered scheme,
means a person who has a beneficial interest in the
registered scheme;
"Security and Exchange Board" means the Securities
and Exchange Agency established under section 1 of
the Securities Industry Law, 1993 (P.N.D.C.L. 333);
"self-employed person" means a person who has no
other employer but himself or herself and works on
his or her own account or with others;
"service provider" in relation to an occupational
pension scheme or provident fund scheme, includes an
investment manager, custodian of scheme assets or
other person appointed or engaged by the trustee of
the scheme to provide services for
the purpose of the scheme, and a person to whom the
provision of those services is delegated by the
manager, custodian or other person, but does not
include a person
appointed or engaged as an auditor, solicitor or
actuary;
"Trust" means the Social Security and National
Insurance Trust established under section 32 of this
Act;
"trust deed" means a legal document, executed in the
form of a deed, which establishes, regulates or
amends a trust;
"trustee" means an individual or company appointed
to carry out the purposes of a trust in accordance
with the provisions of the trust instrument and
general principles of trust law;
"trustee report" means a report by the trustees
describing various aspects of a pension scheme and
it may form part of the annual report;
"vesting" means the right of an employee to the
benefits that the employee has accrued, or some
portion of them, even if employment under the plan
terminates. An employee who has met the vesting
requirements of a pension plan is said to have a
vested right;
"voluntary contribution" means a contribution paid
to a registered scheme in accordance with this Act;
and
"worker" includes a person who is employed for
salary in any kind of work, manual or otherwise, in
or in connection with the work of an establishment,
and who gets his salary, directly or indirectly from
the employer, and any person employed by or through
a contractor in> or in connection with the normal
work of the establishment, who is
(a)
employed in this country but not as a member of the
crew of any ship; or
(b)
employed as a permanent resident of Ghana,
(i) as a member of the crew of a ship, the owners of
which have an office or agents in Ghana; or
(ii) outside Ghana but employed by an employer in
Ghana.
Repeal and savings
212.
(1) The following enactments are hereby repealed:
(a)
Social Security Act, 1991 (P.N.D.C.L. 247);
(b)
Long-Term Savings Act, 2004 (Act 679).
(2) The repeal of the enactments shall not affect
any additional fringe benefits, other than pension
and gratuity enjoyable upon retirement by a person
before the commencement of this Act except as
provided by this Act.
(3) Despite the repeal the regulations, bye-laws,
notices, orders, directions, appointments or any
other act lawfully made or done under the repealed
enactment and in force immediately before the
commencement of this Act shall be considered to have
been made or done under this Act and shall continue
to have effect until reviewed,
cancelled or terminated.
(4) The assets, rights, obligations and liabilities
existing under the Social Security Act, 1991
(P.N.D.CL. 247) are herby transferred to the Trust.
Transitional provisions
Enactments applicable for four years
213.
(1) The following enactments and schemes shall on
the commencement of this Act apply for a
transitional period of four years and cease to be in
force after that period
(a)
the Pensions Ordinance No. 42 of 1950 (CAP 30) as
amended;
(b)
Teachers Pension Ordinance 1955 as amended;
(c)
Ghana Universities Staff Superannuation Scheme;
(d)
Ghana Police Pensions Act ,1985 (P.N.D.CL. 126.);
(e)
Public Legal Officers Pensions Amendment Act 1986
(P.N.D.C.L. 165.);
(f)
Immigration Service Pensions Act 1986 (P.N.D.CL.
226);
(g)
Prisons Services Pensions Act 1987 (P.N.D.CL. 168);
(h)
section 34 of the Security and Intelligence Agencies
Act 1996 (Act 526) and
(i)
section 27 of the National Fire Service Act, 2000
(Act 537).
(2) The Board shall, ensure that the pension schemes
in the country are unified in accordance with
regulations made under this Act within five years
after the commencement of this Act.
Payment of Pension Benefits Under the Cap 30 Scheme
214.
The Controller and Accountant-General's Department
shall continue to
(a)
administer the Cap 30 and other related schemes;
(b)
pay gratuity and pension to the existing pensioners
and the category of officers exempted under section
31 of this Act; and
(c)
pay monthly pension to retired public servants at
present under Cap 30 scheme, in accordance with the
relevant and applicable computations under the
existing Cap 30 pension scheme of the Public
Service.
215.
Where an officer exempted under section 31 of this
Act or a public servant presently under Cap 30
scheme dies while in service or in the course of
duty, the Controller and Accountant-General's
Department shall pay to the next-of-kin or
designated survivors a gratuity and pension benefit
based on the income of the deceased spouse.
Option for active public servants under Cap 30 and
other related schemes
216.
Any person at present under the Cap 30 and other
related schemes and in active service shall within
four years of coming into force of this Act have the
option to join the new scheme.
Decentralisation of public sector pension management
217.
On the commencement of this Act, the administration
and management of the Cap 30 pension scheme shall be
decentralized and there shall be regulations to this
effect.
Temporary pension fund accounts
218.
(1) From the commencement of this Act and before the
licensing or registration of trustees, pension fund
managers and custodians, every employer to whom this
Act applies shall open a temporary Occupational
Pension Fund Account with the Bank of Ghana.
(2) Subject to sections 3 (1), (2) and (3) of this
Act, the five per centum remittance to the second
tier mandatory occupational pension scheme on behalf
of the employee shall be lodged with the Bank of
Ghana pending the licensing of trustees, pension
fund managers and custodians.
(3) Every employer shall maintain proper books of
accounts and records of contributions made under
this Act.
(4) The Board shall within ninety days of licensing
or registration of trustees, pension fund managers
and custodians compute and transfer all
contributions and returns to the credit of the
Occupational Pension Fund Account opened with the
chosen trustees licensed by the Board.
Accrued retirement benefits rights
219.
(1) Subject to section 213 of this Act, the
retirement benefits in respect of accrued or past
service earned by an employee shall be computed in
accordance with the terms of conditions of service
existing before the commencement of this Act.
(2) Each employee shall be issued with a Ghana
Government Retirement Bond equivalent to the total
retirement benefit that was due the employee as
computed at the commencement of this Act.
Paternal System
Mother, Father
Husband
Wife, Son, Daughter
Brother, Sister
Father's father
Father's brother
National Pensions Act, 2008
SCHEDULE
(Section 213)
Maternal System
Mother, Father
Husband
Wife, Son, Daughter
Brother, Sister
Mother's Mother
Mother's brother
Mother's Sister
Sister's Son
Sister's Daughter
Mother's Sister's Son
Mother's Sister's Daughter
Date of Gazette notification:
4
|
