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SOCIAL SECURITY LAW, 1991 (PNDCL
247)
As amended
ARRANGEMENT OF SECTIONS
Section
PART I—ESTABLISHMENT OF THE TRUST
1. Establishment of Social
Security and National Insurance
Trust
2. Membership of Trust
PART II—OBJECTS OF THE TRUST
3. Objects
PART III—THE BOARD
4. The Board
5. Tenure of Office
6. Remuneration of Board Members
7. Meetings of the Board
PART IV—MANAGEMENT AND STAFF OF
THE TRUST
8. Board to be in control of
general policy
9. Execution of Contracts
10. Staff of the Trust
11. Secretary of the Trust
12. Internal Auditor
PART V—FINANCIAL PROVISIONS
13. The Trust to keep books of
accounts
14. Financial Year
15. Audit
16. Annual Report
17. Exemption from taxes
18. Administration expenses
19. Members Account
PART VI—EMPLOYERS AND WORKERS TO
WHOM THIS LAW APPLIES, ETC.
20. Employers and workers to whom
this Law applies
21. Existing Scheme.
PART VII—CONTRIBUTIONS
22. Rate of Contributions
23. Penalty for non-payment of
contributions
24. Employment by several
employers
25. Employer not to reduce
remuneration
PART VIII—LEGAL PROCEEDINGS
26. Penal Proceedings
27. Institution of criminal
proceedings
28. Offences by bodies of persons
29. Civil Proceedings
30. Priority for payment of
contributions
31. Protection against attachment
32. Exemptions from Tax
33. Protection for acts done in
good faith
PART IX—BENEFITS AND QUALIFYING
CONDITIONS
34. Classes of Benefits
35. Qualifying conditions for
pension
36. Formula for computation of
pension
37. Formula for survivors benefit
computation
38. Formula for invalidity
computation
39. Periodical review of pensions
40. Nomination of dependants to
receive benefits
41. Reciprocal Agreement
PART X—GENERAL
42. Functions of employees
43. Regulations
44. Transitional Provisions
45. Interpretation
46. Repeals and savings
SCHEDULE
Schedule
IN pursuance of the Provisional
National Defence Council
(Establishment) Proclamation 1981,
this Law is hereby made:
PART I—ESTABLISHMENT OF THE TRUST
Section 1—Establishment of Social
Security and National Insurance
Trust.
(1) There is hereby established a
body corporate to be called the
Social Security and National
Insurance Trust (in this Law
referred to as "the Trust").
(2) The Trust shall have perpetual
succession and a common seal and
may sue and be sued.
(3) The Trust shall have power for
the discharge of any of its
functions under this Law to
acquire and hold any movable or
immovable property, to dispose of
such property and to enter into
any contract or other transaction.
(4) Where there is any hindrance
to the acquisition by the Trust of
any property under subsection (3)
of this section, the property may
be acquired for the Trust under
the State Property and Contracts
Act, 1960 (C.A. 6) or as the case
may be, under the State Lands Act,
1962 (Act 125), and each such Act
shall apply in relation to any
acquisition with such
modifications as may be necessary
to provide for the vesting of the
property acquired thereunder in
the Trust and for the cost of such
acquisition to be defrayed by the
Trust.
(5) The Trust shall operate a
Scheme to be called the Social
Security Pensions Scheme
(hereafter referred to as "the
Scheme").
(6) The Scheme shall have a Fund
into which shall be paid all
contributions and other moneys, as
may be required under this Law.
Section 2—Membership of the Trust.
The Trust shall be made up of—
(a) the personnel of the Social
Security and National Insurance
Trust existing immediately before
the coming into force of this Law;
(b) such other public officers
that may be transferred or
seconded to the Trust; and
(c) such other persons that may be
employed by the Trust.
PART II—OBJECTS OF THE TRUST
Section 3—Objects.
The objects of the Trust are—
(a) to be responsible for the
general administration of this Law
and any regulations made
thereunder;
(b) to provide social protection
for the working population for
various contingencies such as old
age, invalidity, and such other
contingencies as may be specified
by law;
(c) to be responsible for the
administration and investment of
the Scheme within the framework of
general directives issued by the
Board referred to in section 4 of
this Law;
(d) to carry out such other
activities as may appear to the
Trust to be incidental or
conducive to the attainment of its
objects under this Law.
PART III—THE BOARD
Section 4—The Board.
(1) The governing body of the
Trust shall be a Board of
Directors (hereinafter referred to
as "the Board").
(2) The Board shall consist of the
following members appointed by the
Council:
(a) a Chairman and three other
persons;
(b) two representatives nominated
by Employers' Association;
(c) two representatives nominated
by the Trades Union Congress;
(d) the person appointed
Director-General under section 8
of this Law;
(e) a representative of the
Ministry responsible for Finance;
(f) a representative of the Bank
of Ghana;
(g) a representative of the
Ministry responsible for Labour;
(h) a representative nominated by
the Civil Servants Association,
and
(i)
a representative nominated by the
Ghana National Association of
Teachers.
Section 5—Tenure of Office.
(1) The members of the Board other
than the Director-General of the
Trust shall hold office for a
period of three years, and shall
be eligible for reappointment.
(2) Any member of the Board other
than the Director-General of the
Trust may resign his office by
notice in writing addressed to the
Secretary responsible for Finance
and without prejudice to the
general effect of subsection (1)
of this section any member of the
Board may be removed from office
by the Council.
(3) Where the office of a member
of the Board other than the
Director-General of the Trust
becomes vacant under subsection
(2) of this section before the
expiration of his term of office
under subsection (1) of this
section or by his death the
Director-General shall notify the
Council of the occurrence of such
event and the Council shall
subject to the provisions of this
Law appoint another person in his
place to hold office for the
unexpired portion of his term of
office.
(4) Subject to the provisions of
this Law where the Board notifies
the Council that any member of the
Board other than the
Director-General is incapacitated
by illness, absence from Ghana or
any other sufficient cause from
performing the duties of his
office the Council shall appoint
another person to hold office in
his place until such time as the
Council is satisfied that the
incapacity of that person has
terminated or until the term of
such member expires, whichever
first occurs.
Section 6—Remuneration of Board
Members.
The remuneration of the members of
the Board shall be determined by
the Council on the advice of the
Secretary.
Section 7—Meetings of the Board.
(1) The Board shall ordinarily
meet for the despatch of business
at such times and at such places
as the Board may determine but
shall meet at least once every
month.
(2) A special meeting of the Board
shall be called within seven days
upon a written request signed by
the Chairman or by five members of
the Board addressed to the
Secretary of the Trust.
(3) At every meeting of the Board
at which he is present the
Chairman shall preside and in his
absence a member of the Board
elected by the members from among
themselves shall preside.
(4) Questions proposed at a
meeting of the Board shall be
determined by a simple majority of
the members present and voting and
in the event of any equality of
votes the person presiding shall
have a second or casting vote.
(5) The quorum at any meeting
shall be seven including either
the Chairman or the
Director-General.
(6) The Board may, at any time
co-opt any person or persons to
act as an adviser or advisers at
any of its meetings except that no
person so co-opted shall be
entitled to vote at any such
meeting on any matter for decision
by the Board.
(7) The validity of any
proceedings of the Board shall not
be affected by any vacancy among
its members or by any defect in
the appointment of any of them
except that the defect affects the
quorum.
(8) Any member of the Board who
has any interest in any company or
undertaking with which the Trust
proposes to make any contract or
who has any interest in any
contract which the Trust proposes
to make shall disclose in writing
to the Board the nature of his
interest and shall, unless the
Board otherwise directs, be
disqualified from participating in
the deliberations of the Board on
the contract and shall in any case
be disqualified from voting in any
decision of the Board on such
contract, and any member who
infringes the provisions of this
subsection shall be liable to be
removed from the Board.
(9) The Board shall cause to be
recorded and kept minutes of all
proceedings of its meetings.
PART IV—MANAGEMENT AND STAFF OF
THE TRUST
Section 8—Board to be in Control
of General Policy.
(1) The Board shall, subject to
the provisions of this Law have
general control of the Funds and
investments of the Scheme and the
management of the Trust on matters
of policy.
(2) The Trust shall have a
Director-General who shall be
appointed by the Council and shall
hold office upon such terms and
conditions as may be specified in
his instrument of appointment.
(3) Where the office of the
Director-General becomes vacant
the Board shall notify the
Secretary.
(4) Where the Director-General is
incapacitated from the performance
of his functions under this Law
the Secretary shall appoint
another person to perform these
functions for the duration of the
incapacity.
(5) Subject to the provisions of
this Law, the Director-General
shall be the Chief Executive of
the Trust and shall, subject to
the general control of the Board
on matters of policy, be charged
with the direction of the
day-to-day business of the Trust
and of its administration.
(6) Subject to subsection (5) of
this section, the Director-General
may delegate to any employee of
the Trust or to any other person,
any of his functions under this
Law and may impose such conditions
with respect to the exercise of
such delegated functions as he may
think fit:
Provided that nothing in this
subsection shall be construed so
as to absolve the Director-General
from ultimate responsibility for
any act done by any person in
pursuance of any such delegation.
Section 9—Execution of Contracts,
etc.
(1) The application of the seal of
the Trust shall be authenticated
by two signatures, namely:
(a) the signature of the
Director-General or some other
member of the Board authorised by
the Board to authenticate the
application of the Seal; and
(b) the signature of the Secretary
or some other officer of the Trust
authorised by the Board to act in
the Secretary's place for that
purpose.
(2) The Trust may by instrument in
writing under its common seal
empower any person either
generally or in respect of any
specified matters as its attorney,
to execute deeds on its behalf in
or out of Ghana; and every deed
signed by such attorney on behalf
of the Trust and under his seal,
shall be binding on the Trust and
have the same effect as if it were
under the common seal of the
Trust.
(3) Any instrument or contract
which, if executed or entered into
by a person other than a body
corporate, would not require to be
under seal, may be executed or
entered into on behalf of the
Trust by the Director-General or
any member of the Board if such
person has previously been
authorised by resolution of the
Board to execute or enter into
that particular instrument or
contract:
Provided that if the Trust thinks
fit, it may by writing under its
common seal appoint any person
outside Ghana as agent to execute
or enter into the instrument or
contract and the instrument or
contract shall have effect as if
it had been duly executed or
entered into as prescribed for the
purpose of this subsection.
(4) Every document purporting to
be an instrument executed or
issued by or on behalf of the
Trust and to be—
(a) sealed with the common seal of
the Trust authenticated in the
manner provided by subsection (1)
of this section; or
(b) signed by the Director-General
or by a member of the Board or
other person authorised in
accordance with subsection (3) of
this section to act for that
purpose, shall be deemed to be so
executed or issued until the
contrary is shown.
(5) The provisions of this section
shall have effect subject to the
provisions of section 8 of this
Law and of section 12 of the
Contracts Act, 1960 (Act 25).
Section 10—Staff of the Trust.
(1) The Trust may from time to
time engage such employees as may
be necessary for the proper and
efficient conduct of the business
and functions of the Trust.
(2) All appointments to any post
of the Trust other than that of
the Director-General shall be made
by the Board.
(3) Subject to the provisions of
sub-section (2), the Board may
delegate to the Director-General
or to any other officer the power
to appoint employees in respect of
any post below the rank of a
Deputy Manager.
(4) The Trust may engage the
services of such consultants and
advisers as the Board may upon the
recommendation of the
Director-General determine.
(5) Except as provided in section
8 of this Law, all other
employees, consultants and
advisers of the Trust shall be
engaged on such terms and
conditions as the Board may on the
recommendations of the
Director-General determine.
Section 11—Secretary of the Trust.
(1) The Trust shall have an
officer to be designated as the
Secretary of the Trust.
(2) The Secretary shall be the
Secretary to the Board and shall,
subject to the directions of the
Board arrange the business for and
be responsible for the recording
and keeping of minutes of
proceedings of the meetings of the
Board.
(3) The Secretary shall perform
such functions as the Board may
direct or as the Director-General
may delegate to him.
Section 12—Internal Auditor.
(1) The Trust shall have an
Internal Auditor.
(2) Subject to the provision of
this Law the Internal Auditor
shall be responsible to the
Director-General for the
performance of his functions.
(3) As part of his functions under
this Law the Internal Auditor
shall, at intervals of three
months prepare a report, on the
internal audit work carried out by
him during the period of three
months immediately preceding the
preparation of the report, and
submit the report to the
Director-General.
(4) Without prejudice to the
general effect of subsection (3)
of this section, the Internal
Auditor shall make in each report
such observations as appear to him
necessary as to the conduct of the
financial affairs of the Trust
during the period to which the
report relates.
(5) The Internal Auditor shall
send a copy of each report
prepared by him under this section
to each of the following—
(a) the Secretary;
(b) the Auditor-General, and
(c) the Chairman of the Board of
Directors.
PART V—FINANCIAL PROVISIONS
Section 13—The Trust to Keep Books
of Accounts.
The Trust shall keep proper books
of accounts and proper records in
relation thereto and such account
books and records shall be in such
form as the Auditor-General may
approve.
Section 14—Financial Year.
The financial year of the Trust
shall end on the 31st day of
December in each year.
Section 15—Audit.
(1) The books and accounts of the
Trust shall each year be audited
by the Auditor-General or an
Auditor appointed by him.
(2) The Trust shall pay in respect
of such audit such fee as the
Auditor-General and the Trust may
agree or in case of failure to
agree, such fee as the Secretary
may determine.
(3) It shall be the duty of the
Board as soon as possible, upon
receiving the audit report under
this section to forward a copy of
such report to the Secretary.
(4) The Secretary shall as soon as
practicable upon the receipt of
the said report cause it to be
submitted to the Council.
Section 16—Annual Report.
(1) The Board shall as soon as
practicable, after the expiration
of each financial year, but within
six months thereafter submit to
the Secretary an annual report
dealing generally with the
activities and operations of the
Trust within that financial year
which shall include a copy of the
audited accounts of the Trust
together with the
Auditor-General's report thereon.
(2) The Secretary shall as soon as
practicable after receiving the
annual report of the Board cause
it to be submitted to the Council.
(3) The Board shall also submit to
the Secretary such other reports
on its affairs as the Secretary
may in writing request from time
to time.
Section 17—Exemption from Taxes,
Etc.
The Trust shall be exempted from
corporate tax and such other taxes
and duties as the Secretary may in
consultation with the Secretary
responsible for National Revenue
determine.
Section 18—Administrative
Expenses.
All expenses relating to the
administration of the Scheme shall
be a charge on the Fund in
accordance with the standard
Pension Accounting practice and
shall be subject to the approval
of the Secretary on the
recommendation of the Board from
year to year.
Section 19—Members Account.
The Board shall cause to be
maintained for each member an
account to which shall be credited
all contributions.
PART VI—EMPLOYERS AND WORKERS TO
WHOM THIS LAW APPLIES, ETC.
Section 20—Employers and Workers
to Whom this Law Applies.
(1) The Law shall apply to—
(a) every employer of an
establishment and to every worker
employed therein;
(b) every other employer and
worker to whom the Social Security
Decree, 1972 (N.R.C.D. 127)
applied immediately before the
commencement of this Law, and
(c) all self-employed persons, who
opt to join the Scheme.
(2) Where a member has ceased to
be employed he may continue to pay
his monthly contribution at the
rate being paid by a self-employed
person.
(3) This Law shall not apply to
officers and men of the Armed
Forces and such other officers as
are expressly exempted by Law.
Section 21—Existing Scheme.
(1) The existence of a private or
company pension, provident fund,
superannuation scheme or gratuity
scheme in respect of workers to
whom this Law applies shall not
exempt the employer of such worker
or such workers from the
provisions of this Law and such
employer shall be responsible for
deducting contributions from the
remuneration of such workers and
paying them along with his own
contributions to the Fund at the
rates laid down in the provisions
of this Law.
(2) Notwithstanding the provisions
of any scheme referred to in
subsection (1) of this section,
the employer concerned may amend
the written provisions of the
scheme referred to in subsection
(1) of this section with the prior
approval of its board of Trustees
or in the absence of such
approval, with the consent of the
Board so as to adjust the benefits
provided therein to enable the
payment of the contribution
payable under this Law.
PART VII—CONTRIBUTIONS
Section 22—Rate of Contribution.
(1) Every employer of an
establishment shall deduct from
the pay of every worker in such
establishment immediately at the
end of the month, a worker's
contribution of an amount equal to
five per centum of such worker's
pay for such period, irrespective
of whether or not such pay is
actually paid to the worker.
(2) Every employer of an
establishment shall pay for each
month in respect of each worker,
an employer's contribution of an
amount equal to twelve and half
per centum of such worker's pay
during such month.
(3) The contributions referred to
in the preceding subsections
shall, within fourteen days at the
end of each month be remitted to
the Trust.
(4) A self-employed person shall
contribute seventeen and half per
centum of his income for the month
from his profession, vocation,
business or occupation.
(5) Notwithstanding any agreement
or understanding to the contrary,
an employer shall not be entitled—
(a) to deduct or otherwise recover
his own contribution from the
worker's pay; or
(b) to deduct the member's
contribution for an earlier
contribution period from the pay
in respect of a later period:
Provided that the employer shall
be entitled to make such
deductions—
(a) if his failure to make the
deduction was due to a false
declaration made in writing by the
worker at the time of his
employment that he was not already
a member of the Scheme, or
(b) if such 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 Trust
Inspector.
(6) Where an employer deducts
contributions from the pay of
workers under this Law, the
contributions shall be deemed to
be held by such employer in trust
for the purpose of this Law until
they are remitted to the Trust.
Section 23—Penalty for Non-payment
of Contribution.
(1) Subject to subsection (2) of
this section if any contribution
is not paid within the period
prescribed under section 22:
(a) a sum equal to three per
centum per month of the
contribution payable shall be
added thereto as a penalty;
(b) the Director-General shall
serve a demand note upon the
defaulting contributor and if
payment of the contribution and
penalty is not made within thirty
days after the date of the service
of such note the Director-General
may proceed to collect and recover
the contribution and the penalty;
and
(c) if any person without
reasonable excuse fails to pay the
contribution and penalty imposed
under paragraph (a) of this
subsection, the Director-General
may direct that such person shall
pay in addition a penalty of a sum
equal to three per centum of the
total of the outstanding
contribution and penalty imposed
under that paragraph for every
month during which the default
continues.
(2) The Director-General may, with
the approval of the Board, remit,
wholly or partly, the penalty
imposed under subsection (1) of
this section.
Section 24—Employment by Several
Employers.
Where a worker is concurrently
employed by more than one
employer, each such employer,
shall be responsible only for his
obligations under this Law.
Section 25—Employer not to Reduce
Remuneration.
No employer shall, by reason of
his liability for any contribution
to the Scheme or for any other
charges under this Law or
regulations made thereunder
reduce, whether directly or
indirectly, the pay or other
emoluments of any member of the
Scheme.
PART VIII—LEGAL PROCEEDINGS
Section 26—Penal Provisions.
(1) Any person who—
(a) with intent to evade payment
of any contribution or any other
amount due from him knowingly
makes any false statement or
representation, or produces or
furnishes or causes to be produced
or furnished any document or
information which he knows to be
false in a material particular; or
(b) in order to benefit himself or
some other person, knowingly makes
any false statement or
representation or produces or
furnishes, or causes to be
produced or furnished, any
document or information which he
knows to be false in a material
particular; or
(c) wilfully misrepresents or
fails to disclose any material
fact, or fails to pay to the Trust
within such period as may be
prescribed any amount which he is
liable to pay under this Law or
regulations made thereunder; or
(d) wilfully obstructs or assaults
any Inspector, officer or servant
of the Trust in the discharge of
his duties; or
(e) without reasonable excuse,
proof of which shall be on him,
fails to comply with any
provisions of this Law or
regulations made thereunder shall
be liable on summary conviction,
(i)
in respect of an offence under
paragraphs (a), (b) or (c) of this
subsection to a fine of a sum
equivalent to any amount owed to
the Trust or to imprisonment for a
term not exceeding five years or
both,
(ii) in respect of an offence
under paragraphs (d) or (e) of
this subsection to a fine not
exceeding ¢500,000.00 or to
imprisonment for a term not
exceeding five years or both.
(2) Where an employee of the Trust
conspires or aids and abets any
other person in the commission of
any offence specified in
subsection (1) of this section,
such employee shall, on summary
conviction be liable to the same
punishment as prescribed under
that subsection.
Section 27—Institution of Criminal
Proceedings.
(1) Criminal proceedings under
this Law may be instituted and
conducted by the Attorney-General
or any officer of the Trust
authorised by him.
(2) The Court, when convicting any
person of an offence under this
Law may, without prejudice to any
civil remedy, order such person to
pay to the Trust the amount of any
contribution together with any
interest or penalty thereon, due
from such person to the Trust at
the date of conviction and such
amount may be recovered in the
same manner as a fine and shall be
paid to the Trust for the credit,
where applicable of the accounts
of the members of the Scheme.
Section 28—Offences by Body of
Persons.
In the case of any offence under
this Law committed by a body of
persons—
(a) where the body of persons is a
body corporate, other than a
partnership every director and
officer of that body corporate
shall also be deemed to be guilty
of that offence; and
(b) where the body of persons is a
firm, every partner of that firm
shall also be deemed to be guilty
of that offence:
Provided that no such person shall
be deemed to be guilty of an
offence under this Law if he
proves that the offence was
committed without his knowledge or
that he exercised all due
diligence to prevent the
commission of the offence.
Section 29—Civil Proceedings.
(1) Notwithstanding any other Law,
a contribution to the Scheme along
with interest or any monetary
penalty payable or imposed for
failure to pay in time may be
recovered by action as a debt
owing to the Trust at any time
within twelve years from the date
when the contribution or such
penalty became due.
(2) Action for the recovery of
contribution and other penalties
under this section may be
instituted and conducted by an
authorised officer of the Trust.
Section 30—Priority for Payment of
Contributions.
Where—
(a) on the application by the
Trust any attachment is issued
against the property of an
employer in execution of a decree
against him and any such property
is seized or sold or otherwise
realised in pursuance of such
execution, or
(b) on the application of a
secured creditor, the property of
an employer is sold,
the proceeds of the sale or other
realisation of such property shall
not be distributed to any person
entitled thereto, until the Court
ordering the sale or other
realisation has made provision for
the payment of any amount due by
the employer under this Law before
the date of such order.
Section 31—Protection Against
Attachment.
Except as hereinafter provided in
section 34—
(a) the accumulations to the
credit of any member of the
Scheme, or contribution in transit
to the Scheme or lying with an
employer, shall be incapable of
being assigned or charged and
shall not be liable to attachment
under any law or order of any
court in respect of any debt or
liability by the member, even in
the event of his bankruptcy or
insolvency;
(b) subject to section 54 (A) of
the Income Tax Decree, 1975 (S.M.C.D.
5), any amount actually or
potentially standing to a member's
credit in the Scheme at the time
of his death and payable to his
dependants shall before it is paid
to the dependants be free from
attachment by process of law;
(c) accrued contributions to the
Scheme shall be paid
notwithstanding the bankruptcy or
insolvency of an employer.
Section 32—Exemption from Tax.
[Repealed by Internal Revenue Act,
2000 (Act 592), s. 168 (f)].
Section 33—Protection from Acts
Done in Good Faith.
No suit or other legal proceedings
shall lie against any member of
the Board, any officer or employee
of the Trust in respect of
anything which is done in good
faith in pursuit of the objectives
of this Law.
PART IX—BENEFITS AND QUALIFYING
CONDITIONS
Section 34—Classes of Benefits.
(1) The following benefits shall
be payable under this law—
(a) a Superannuation Pension when
a member of the Scheme retires or
is retired after attaining the
pensionable age
Provided that no Superannuation
Pension, or benefits shall be paid
to any person except on the
following conditions:
(i)
that he retires on or after
attaining the pensionable age of
60 years and he has contributed to
the Scheme for not less than
twenty years in the aggregate or
two hundred and forty months; or
(ii) that he voluntarily retires
with a reduced pension on
attaining the age of 55 years and
has contributed to the Fund for an
aggregate period of not less than
two hundred and forty months;
(b) a lump sum equal to the
member's contribution and interest
equivalent to half the prevailing
Government treasury rate thereon
where such a member had done less
than 20 years minimum contribution
prior to his retirement either
voluntarily or compulsorily;
(c) an Invalidity Pension based on
a member's right when a member of
the Scheme has contributed for not
less than twelve months within the
last thirty six months and is
certified by a Medical Board to be
incapable of any normal gainful
employment by virtue of a
permanent physical or mental
disability:
Provided that where a person is
certified by a Medical Board to
have fully recovered from any
disability and he has not attained
the pensionable age under this
Law, he may rejoin the Scheme;
(d) a Survivor's Lump Sum Benefit,
on the member's death to such
members of the family who are
dependants and in whose favour a
valid nomination exists in the
Trust's Office:
Provided that where there is no
such nominations or the nomination
made is invalid, the lump sum
payable shall be distributed to
such dependants as may be
determined by the
Administrator-General;
(e) such other benefits as may be
prescribed.
(2) Any person who has worked as
an underground mine worker or in
steel works or in such hazardous
employment as may be specified for
an aggregate period of two hundred
and forty months or more and has
attained the age of 55 years shall
be entitled to a retirement
benefit.
Section 35—Qualifying Conditions
for Pension.
(1) Any person who—
(a) has satisfied the minimum
contribution period of not less
than two hundred and forty months;
(b) has attained the age of 60
years or 55 years in the case of
an underground mine worker or such
workers as specified in subsection
(2) of this section or has opted
for voluntary retirement with
reduced pension; and
(c) has filed an application for
Superannuation benefit, shall be
entitled to a pension payment for
each month beginning with the
first month in which such person
becomes so entitled to such
payment.
(2) Any 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 such 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 such
employment shall be entitled to a
pension benefit upon attaining the
age of 55 years.
Section 36—Formula for Computation
of Pension.
(1) For the purpose of computing
pension benefits a member may be
paid a full or a reduced pension:
Provided that such a member may
exercise the option for a part
lump sum payment of twenty-five
per centum of his pension and a
reduced pension payment.
(2) The minimum pension payment
shall be based on fifty per centum
of the average annual salary for
the three best years of a member
during his working life.
(3) Where a member works beyond
the minimum contribution period
the amount of pension payable
shall be increased by one decimal
point fifty per centum for each
twelve months worked up to a
maximum of eighty per centum.
(4) Notwithstanding subsection (2)
of this section no pension payment
shall exceed eighty per centum of
the average of the highest
salaries in the top five per
centum bracket of contributing
members.
(5) Where there are grounds to
suspect that the annual salary has
been inflated with intent to
defraud, the Trust shall have the
power to investigate and
thereafter the right pension
payment shall be made to the
member concerned.
Section 37—Formula for Survivor's
Benefit.
(1) Where a member dies having
satisfied the minimum contribution
period a lump sum payment computed
on the present value of his
pension for a period of twelve
years using the prevailing
treasury bill rate shall be made
to his nominated dependants.
(2) Where a member dies prior to
satisfying the minimum
contribution period a lump sum
equal to the present value of the
members proportional pension for a
period of twelve years shall be
paid to his nominated dependants.
(3) Where a member retires but
dies before the age of 72 years, a
lump sum payment based on the
present value of his unexpired
pension up till 72 years shall be
made to his nominated dependants.
Section 38—Formula for Invalidity
Computation.
Where any member is certified as
being invalid in accordance with
the provisions of section 34 (c)
such a member shall be entitled to
the minimum pension or his earned
pension whichever is higher.
Section 39—Periodic Review of
Pensions.
The Trust shall annually review
the pension payment based on
adjustment in salaries and wages
of members.
Section 40—Nomination of
Dependants to Receive Benefits.
(1) Every person who is required
or entitled to become a member of
the Scheme shall be asked
forthwith by his employer to
furnish and shall, on such demand,
furnish to the employer
particulars concerning himself and
his dependants for the receipt of
benefits on his death.
(2) Such employer shall enter the
particulars in the prescribed form
and on obtaining thereon the
signature and thumb impression of
the person concerned, forward it
to the Trust.
(3) Every employer shall before
taking any person into employment
ask him to state in writing
whether or not he is a member of
the Scheme and, if he is, ask for
the account number and the name
and particulars of the last
establishment, if any, where he
was employed and whether he had
nominated anyone to receive the
benefits as his survivor.
(4) If the person was a member of
the Scheme his old account number
and the nomination made by him
shall continue to be operative and
the Trust's attention shall be
drawn to them by the new employer.
(5) If the person was not a
member, the employer shall require
him to furnish and such person
shall, on demand, furnish to the
employer for communication to the
Trust particulars regarding
himself and his dependants and the
employer shall enter the
particulars in the prescribed form
and having obtained thereon both
the signature and thumb impression
of the person concerned, forward
the form to the Trust.
(6) Subject to the provisions of
subsection (3) a member of the
Scheme shall be free to update his
nomination and such revised
nomination shall be forwarded to
the Trust.
(7) Where payment of benefits has
been made to a person validly
nominated under this section, no
other person shall have any other
claim against the Trust.
Section 41—Reciprocal Agreements.
(1) The Government of Ghana may
enter into a reciprocal agreement
with the Government of any other
territory in which a scheme
similar to the Scheme has been
established and there may be
included in the agreement the
following provision—
(a) that any period of membership
of such scheme in the territory of
that Government may be treated as
a period of membership of the
Scheme and vice versa; and
(b) that, subject to such
conditions as may be agreed, any
amount standing to the credit of a
member of the Scheme in Ghana who
works for any employer in the
territory of that Government may
be transferred to his credit in
such Scheme, and vice versa.
(2) Any reciprocal agreement made
under this section may modify,
adapt or amend the provisions of
this Law to give effect to the
agreement.
PART X—GENERAL
Section 42—Functions of Trust
Inspectors.
(1) Any inspector of the Trust
appointed under this Law, if he
has reasonable cause to believe
that there are workers on any
premises or place may on
production of his certificate of
appointment or identity card as an
employee, enter at all reasonable
times on the premises or place and
there make any examination and
enquiry necessary to obtain
information for the purposes of
this Law.
(2) In the performance of his
duties under this section, an
inspector may require the
production of documents relating
to appointment, attendances, wages
of workers and contributions or
liability of employers to
contribute to the Scheme for
inspection by him on the premises
or place and to take copies
thereof or extracts therefrom.
(3) Where an establishment has
discontinued its work or has been
closed down and has no premises,
the inspector may require the
production of the documents
relating to past transactions at a
reasonable place and time,
including his own office or the
office of any other establishment
and the previous employer or any
other person having custody of
such documents shall produce them
as required by the inspector.
(4) Where it becomes necessary for
an inspector to visit such
premises or place as has been
declared by a competent Government
authority as a security area or
the admission to which is
restricted, the inspector shall
not enter such premises or area
without obtaining prior permission
of the officer in charge thereof.
Section 43—Regulations.
The Secretary may by legislative
instrument make regulations in
respect of all matters for the
purpose of carrying out the
provisions and principles of this
Law.
Section 44—Transitional
Provisions.
(1) On the coming into force of
this Law the following provisions
shall apply for a period of five
years—
(a) every person to whom the
Social Security Decree (N.R.C.D.
127) applied immediately before
the commencement of this Law shall
be credited for the number of
months he had contributed to the
Scheme.
(b) where a person had already
collected his interim benefit
under the Social Security Decree,
1972 (N.R.C.D. 127) and is still
in employment he may exercise an
option to repay the amount
collected together with interest
thereon at the rate of six per
centum within six months upon
inception of the Scheme and such
person shall continue to
contribute till he reaches the
retiring age and qualifies for
pension.
(c) where a person on the coming
into operation of the Scheme has
attained the maximum age of 57
years and has already collected
his final benefits under the
previous scheme he may exercise
the option to repay the amount
collected with interest thereon at
the rate of six per centum within
a period of six months upon the
coming into operation of the
Scheme and shall continue to
contribute till he reaches the
compulsory retiring age;
(d) where a member retires on
reaching the age of 55 years upon
coming into operation of this Law
without satisfying the minimum
contribution period he shall be
entitled to a reduced pension
except that he shall have
contributed for a period of not
less than fifteen years to the
Scheme;
(e) where a member fails to
contribute for the minimum period
of fifteen years he shall be paid
the amount standing to his credit
with interest thereon.
Section 45—Interpretation.
In this Law, unless the context
otherwise requires—
"contribution period" means where
pay is paid to a worker—
(a) at the intervals of more than
a fortnight, the month during
which the pay is given;
(b) at intervals of more than a
week but not more than a
fortnight, the fortnight ending
with the last day of the week in
which the pay is given; and
(c) at intervals of a week or
less, the week in which the pay is
given;
"Council" means the Provisional
National Defence Council;
"dependants" means and includes—
(a) all members of the family of a
member and
(b) all other persons whom he was
by reason of adoption under the
Adoption Act, 1962 (Act 104) or
otherwise obliged to maintain and
who were dependants upon the
earnings of the member at the time
of his death;
"employer" means—
(a) the owner of an establishment
or the person who, or the
authority 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 giving of his
pay;
"establishment" means any office,
shop, factory, mine, plantation,
or any other place where persons
are employed on pay for work or
business of any kind.
"Fund" means the Social Security
Fund;
"member" means any person to whose
credit there is an amount standing
in the Fund or from whose pay a
contribution has been deducted for
payment into the Fund and whose
benefits have not been paid;
"member of the Family" means—
(a) when used in relation to a
citizen of Ghana any one of those
persons mentioned in the Schedule
according as the family is based
on the paternal or the maternal
system;
(b) when used in relation to any
person who is not a citizen of
Ghana, the wife, husband, father,
mother, grandfather, grandmother,
stepmother, stepfather, son,
daughter, grandson,
grand-daughter, stepson,
step-daughter, brother, sister,
half-brother or half-sister.
"pay" means all 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 him at fixed
or determinable intervals of time—
(a) in respect of normal periods
of work to be performed by the
worker; or
(b) where payment is calculated in
relation to set tasks, in respect
of the number of tasks completed
by the worker; or
(c) where payment is calculated in
relation to the volume of work
done, in respect of the volume
completed by the worker;
and includes emoluments earned by
him on 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;
"Secretary" means the Secretary
responsible for Finance and
Economic Planning;
"self-employed person" means a
person who has no other employer
but himself and works on his own
account;
"worker" means any person who is
employed for pay in any kind of
work, manual or otherwise, in or
in connection with the work of an
establishment and who gets his
pay, directly or indirectly, from
the employer, and includes any
person employed by or through a
contractor in or in connection
with the normal work of the
establishment, and—
(a) is employed in Ghana but not
as a member of the crew of any
ship; or
(b) being a permanent resident of
Ghana, is employed;
(i)
as a member of the crew of any
ship, the owners of which have an
office or agents in Ghana; or
(ii) outside Ghana for an employer
in Ghana.
Section 46—Repeals and Savings.
(1) The Social Security Decree,
1972 (N.R.C.D. 127) is hereby
repealed.
(2) Notwithstanding the repeal of
the Social Security Decree, 1972 (N.R.C.D.
127) the statutory instrument made
thereunder and in force
immediately before the
commencement of this Law shall
with the necessary modifications
continue in force until amended or
revoked.
(3) For the removal of doubt all
assets, rights, obligations and
liabilities existing under the
Social Security Decree, 1972 as
amended and any statutory
instrument made thereunder are
hereby transferred to the Trust.
SCHEDULE
(Section 45)
Paternal
System
Maternal System
Mother, Father Mother,
Father
Husband
Husband
Wife, son,
daughter
Wife, son, daughter
Brother,
sister
Brother, sister
Father's
father
Mother's mother
Father's
brother
Mother's brother
Mother's sister
Sister's son
Sister's daughter
Mother's sister's son
Mother's sister's daughter
Made this 1st day of January,
1991.
FLT.-LT. JERRY JOHN RAWLINGS.
Chairman of the Provisional
National Defence Council
Date of Gazette Notification: 15th
February, 1991.
amended by
INTERNAL REVENUE ACT, 2000 (ACT
592) |
