A trust is a relationship between three parties whereby property (tangible or intangible) is transferred by one party to be held by another party for the benefit of a third party.

A Trustee is an individual or company appointed to oversee the day to day management of property owned by a trust.

It is a going concern and you do not have to worry about appointing a new trustee, if death occurs, as can happen with the use of individual trustees.

The Trustee should be licensed by the National Pensions Regulatory Authority.

The new pension scheme has 3 levels from which employees benefit.

Level 1, referred to as tier 1, is a mandatory basic national social security managed by SSNIT with a constituted Board of Trustees.
Level 2, referred to as tier 2, is a mandatory occupational pension scheme managed by a Trustee who appoints a Fund manager and a Custodian.
Level 3, referred to as tier 3, is a voluntary pension scheme for workers and self-employed workers in the informal sector. The contributions are managed .

Tier 1 is 11% + (2.5% NHIL) of gross salary
Tier 2 is 5% of gross salary
Tier 3 is up to 16.5% of gross salary

• Returns on Investment: The essence of allowing the private sector to manage the scheme is to make available to contributors an opportunity to make higher returns on their contributions with respect to the second and third tiers.

• Tax Reliefs: The Act provides for up to 35% of employees income to be (whether contributed by employer alone or in partnership with employee), exempted from tax when set aside for retirement related investment within the framework of the New Pension Law. Additionally the returns on this income will not be taxed under the new scheme.

• Protection of Accrued Returns: The law prohibits the attachment of the returns on the investment in the execution of a judgment debt or such returns being used as a charge, pledge, lien, or being transferred, assigned or alienated by or on behalf of the member.

• Improved Customer Service: The new scheme which comes with a compliance and performance monitoring regulator will ensure improved service in the administration of the schemes under the two tiers to be privately managed.

The law provides for a member of a scheme to elect to transfer his/her accrued benefits to another registered scheme when he/ she changes employment, and both the previous employer and the trustees of that scheme are obliged to comply in effecting the transfer and the necessary notifications.

Your nominated Corporate Trustee will help you join.

Amend existing rules to comply with the new pension ACT 766 and duly register it with the NPRA and appoint a Corporate Trustee to manage it.

Can an employer decide to manage its' Provident Fund Scheme?

Yes. If you have an in-house Board of Trustees the new pension law mandates you to appoint an Independent Trustee and the benefit of appointing a Corporate Trustee us your Independent Trustee is the scheme administration services they offer. By providing scheme administration services they are relieving your staff to perform the core functions for which you employed them.

• To secure the scheme registration
• To ensure that pension fund managers and custodians comply with regulatory requirements or guidelines.
• To maintain investment policy statements and internal control procedures prescribed by the NPRA.
• To ensure that the investment of funds of the scheme is diversified to minimize investment risk.
• To act as a provident trustee in financing relationship with its members.
• To process transfer and payment requests as contained in the trust.
• To keep proper accounting records and a members' register.
• To prepare and lodge annual audited financial statements, scheme and investment reports and other relevant records that the NPRA may require.
• To perform other functions as may be directed by the NPRA.

A percentage of the opening Net Asset Value of the Pension Fund investment, but that would be fixed by the NPRA.

Contributions will be invested with other employers who sign on to the scheme, called master trust scheme. It is cost effective as you benefit from economies of scale. You can however opt for a separate scheme.

The National Pensions Regulatory Authority (NPRA) would set its benchmark for assessing a Pension Fund Manager.

The National Pensions Regulatory Authority (NPRA), by regulations and guidelines would put in place pre-emptive measures to protect the contributor's funds to avoid loss. However, approved trustees would have the fiducial responsibility to ensure that investments are diversified and within the permitted investment.

The Trustees, Fund Managers and Custodians perform separate duties which are a departure from previous arrangement where Funds Managers doubled as Custodians.

Tier two
• When a member attains retirement age he/she is entitled to the entire accrued benefits in the scheme in a lump sum.
• When 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.
• A person who is not a citizen of Ghana who does not satisfy the qualifying conditions for benefit but desires to emigrate permanently from this country may be entitled to the entire accrued benefits in the scheme in a lump sum.
• A member of the scheme who is retired on the decision of a properly constituted medical 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 is entitled to the entire accrued benefits in the scheme in a lump sum.
• A member who is retired due to total or permanent disability either of mind or body is entitled to the entire accrued benefits in the scheme in a lump sum.
• A member who 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.
• On the death of a member of the scheme, the approved Trustee shall pay the whole of the member's accrued benefits as a lump sum.

Tier Three
• A member who has attained the retirement age is entitled to the entire accrued benefits in the scheme in a lump sum.
• A member who has not attained the retirement age may withdraw all or part of the member's accrued benefits in the scheme -after ten years from the date of first contribution in the case of provident fund or personal pension scheme for contributors in the formal sector.
or
after five years from the date of first contribution in the case of personal pension scheme for contributors in the informal sector
or
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.
• On the death of a member of the scheme, the beneficiaries of the estate of a deceased contributor may withdraw the accrued benefits of the deceased from the scheme.

a. Provide 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 within 14 days to the approved trustee.
c. Not to mingle payroll deductions with the employer's own funds. Deductions shall be held in trust till it is remitted to the approved trustee.
d. Provide remittance statement to approved trustees.
e. Display certificate of participation.
f. Provide monthly pay-record to employees, stating the various deductions and the dates the contributions were paid to the approved trustee.
g. Keep records of all payments made in respect of each employee.
h. Respond to inquiries by employees regarding their contributions within 14 days.
i. Provide information and any changes thereafter to the trustee relating to employers business address and name, employees residential address, telephone number.

This refers to a benefit scheme by which an employer and an employee contribute into a fund that is invested to provide the employee with a pension on retirement either as an annuity or as a lump sum.

It is a contributory three-tier scheme set up by the National Pensions Regulatory Authority to ensure retirement income security for all workers in Ghana.

Level 1, referred to as tier 1, is a mandatory basic national social security managed by SSNIT with a constituted Board of Trustees.

Level 2, referred to as tier 2, is a mandatory occupational pension scheme managed by a Corporate Trustee who appoints a Fund manager and a Custodian.

Level 3, referred to as tier 3, is a voluntary Provident Fund /Personal pension scheme for workers and self-employed workers in the informal sector. The contributions are managed by a Corporate Trustee who appoints a Fund manager and a Custodian

This is a defined contribution scheme set up by Enterprise Trustees Limited. It is a master trust scheme duly licensed to operate in Ghana. The Scheme targets employers to provide them with a one-stop solution to the management of their employee Tier 2 mandatory contributions. The employers are either from private or public sector.

Once your organization appoints Enterprise Trustees as its Trustee, after completion of the necessary documentation, your organization   and your staff are automatically enrolled.

1. The Human Resource Manager will be provided with an enrolment form to be completed by members. This will provide us with their bio data to enable us enroll them onto the scheme.
2. Once enrolled, members can then register on the member online portal ‘The Stable’ (https://thestable.enterprisegroup.net.gh:8085/Mss/) with their mobile number.
3. The Stable provides employers and employees access to view their corporate and individual statement.

Per the National Pensions Act, Employers are required to remit 5% out of the 18.5% mandatory pension contribution to a private Corporate Trustee on behalf of employees. Contributions are based on monthly pay and are deducted from gross pay before tax.

The Scheme is a defined contribution pension scheme, that is, a pension scheme in which the retirement benefit paid to members depends on the amount of total contributions and the investment returns earned on those contributions.

1. All contributions paid by the employer on behalf of staff are invested and allocated to the individual pension account of employees.
2. Any returns made on the investment will be added to the individual employees’ pension account.

• 24-hour access to Employer and Member Online Portal ‘The Stable’
• Monthly SMS notification to members on allocated contributions
• Monthly e-mail summary statement to members.
• Call Centre available to address member concerns.
• Dedicated relationship manager to educate staff and address any other issues
• Periodic Newsletter to provide members with relevant pension news and help them better prepare for retirement.
• Prompt processing of retirement benefits and transfer requests

Funds are invested in accordance with the National Pensions Regulatory Authority (NPRA) investment guidelines which provide maximum percentage limits in the permissible investment options.

The ET2OPS funds are managed by Fund Managers who have been appointed by the Trustees and tasked with investing assets of the fund.

The Trustees also appoint a Custodian to keep custody of cash, securities and documents of assets belonging to members.

The normal retirement date for the scheme is 60 years.

• Members will receive a lump sum benefit equal to the value of their contributions and investment returns.
• Members will be notified of their eligibility to access their retirement funds 6 months before their 60th birthday.

Apart from the normal retirement age, members will be entitled to receive their retirement benefits under the following conditions;

• Voluntary retirement age at 55 years
• Unemployment at age 50 with certification from the labour office
• Permanent emigration (for expatriates)
• Total incapacity (No age restriction)

If an employee dies as an active member before the age of 60, a lump sum equal to the value of his/her contributions and investment returns will be paid to his/her nominated beneficiaries.

This is 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 to the contributor. It is a defined contribution scheme set up by Enterprise Trustees Limited. The Scheme targets employers to provide them with a one-stop solution to the management of their employee Tier 3 Voluntary contributions.

The companies operating old Provident Fund Schemes must register the scheme with NPRA and modify existing rules and regulations of the scheme in compliance with the National Pensions Act 2008 (Act 766), the regulations and the guidelines issued by the Authority.

Yes.

• The contributor gets 16.5% tax exemption on his/her income from which the contributions were made.
• The interest of members will be protected by the Pensions Authority, overseeing to the administration and management of the schemes.
• The rules and regulations of the scheme will conform to the Act which ensures that the sponsor has no undue influence in the management of the scheme and also ensure that the scheme funds/assets are separated from that of the trustees and the employer/sponsor.
• The law also provides one-third representation of members on the Board of trustees managing the scheme. This provides an opportunity for the members of the scheme to have a say in the management of their contributions.
• The fees charged by the services providers are also regulated to avoid arbitrary charges that may affect the scheme.

Based on the arrangement by your organization, either the employee, the employer or both will contribute up to 16.5% voluntary contribution of your basic salary. The maximum allowable for tax relief is 16.5% however the employee, the employer or both can do additional voluntary contributions beyond this limit.

It is an individual retirement plan that is geared towards enhancing your retirement benefit. It is a plan that offers you the opportunity to grow your retirement income in order to maintain a comfortable lifestyle when you go on retirement.

Retirement is a period in your life where you no longer have the luxury of earned income. Whether you are a formal or informal sector worker, an individual retirement plan ensures that you have an added advantage that offers you a means of financial stability and security.

The Personal Pension plan is a major determining factor of your satisfaction with your retirement lifestyle.

Investing in a Personal Pension Plan today is a way for you to guarantee a better tomorrow.

What are the Returns on my investment?

The objective of the scheme is to achieve real returns above inflation consistently.

The scheme is for both workers in the formal and informal sector. Formal workers who want to make additional contributions apart from the mandatory contributions are allowed to do so. Informal sector workers who are not covered under the mandatory pension scheme are catered for under this plan.

Percentages of contributions of Members will be apportioned into two different accounts that is a pension and a savings account based on Members’ preferences.

To become a member of the Enterprise Personal Pension Scheme, download the Enterprise Advantage App and go to pensions or use the link https://my.enterprisegroup.net.gh/pension/personal-pensions-scheme/signup. Alternatively, you can *714*333# to sign up.

How are my contributions invested?

The scheme has set up a Statement of Investment Policy (SIP), this takes guidance from the National Pensions Regulatory Authority (NPRA) investment guidelines which provide maximum percentage limits in the permissible investment options.

All contributions paid into your member account are invested on your behalf. Any returns made on the investment will be added to your Member’s account.

You can choose to contribute any amount and determine the frequency of your contributions.

Yes. At retirement you can choose to transfer all or part of your accumulated pension benefits into the Purple Drawdown constituent fund. This is a post retirement component which serves as a savings vehicle for individuals on retirement to help them manage the use of accumulated funds based on their needs. Based on your preference you can opt to draw down on your funds monthly, quarterly bi-annually or annually.

You can transfer your fund into your personal pension account when you resign from your organization.

At retirement, you can transfer your full or partial Tier 2 or 3 accumulated lump sum into the Purple Drawdown Plan under the Personal Pension Scheme and choose to receive periodic payments monthly, bi-annually or annually.

You can dial *714*333# to receive a summary statement, download the Enterprise Advantage App via Google Play or Appstore or visit the web app my.enterprisegroup.net.gh. Alternatively, log on to our member online portal ‘The Stable’ via ‘https://thestable.enterprisegroup.net.gh:8085/Mss/ to view your contribution statement. You can also change your personal details and update your beneficiary information on the portal.

• Real Returns on investment
• Opportunity to choose a constituent fund that corresponds to you needs.
• SMS alert on your account
• Easy enrollment
• 24-hour member online portal
• Monthly email statement
• Varied and flexible modes of payment e.g. USSD, mobile money, direct debit etc

The Scheme is a defined contribution pension scheme, that is, a pension scheme in which the retirement benefit paid to you depends on the amount of total contributions and the investment returns you earn on those contributions over time.

• After 10 years of savings
• Retirement (Sixty (60) years)
• Early Retirement (55 years)
• Permanent Physical or permanent disability
• Emigration

The tenure is 3 years.

Up to 90% of your accumulated Tier 3 fund

Processing fee is 1.5%.

Individuals seeking to take personal loans should have contributed at least a minimum of 10 years to their Tier 3 pension fund.

The interest rate is 19% p.a

A debt service ratio of 50% will be applied taking all other loans of the member into consideration.

If you decide to pay off your loan before its tenure, the bank will take the principal amount and interest accruing to the day you are paying off and not interest that is yet to be accrued.

Yes. Your salary will have to be paid through your Ecobank because repayment will have to be from your salaried account.

Through the bank.

Yes. A couple can put their pension funds together and put their salaries together to apply.

Yes. It is in your interest to have insurance on your life and the property so that in the unlikely event you pass away, your beneficiaries will still have the property.

15 years

Cedi equivalent of $350,000

Yes, you can transfer your existing mortgage to Ecobank.

If the amount in your Provident fund is enough be used for 20% of the loan amount then your personal pension will not be encumbered. However, if the amount in your Provident fund is not up to the requisite 20% of the loan amount then your Personal Pension fund will also be included as collateral.

Based on discussions with the house owner and amount outstanding, either the house is sold and any balance paid out to you or your pension funds will be used to pay the outstanding balance.

For Tier 3, the fund will still be in your name however there will be a lien placed on it. For the property we will have a mortgage registered indicating that the property is for you but has been mortgaged to Ecobank. When you are done paying it, the bank will discharge you of that mortgage showing that the building is no longer encumbered.

No, you cannot trade your uncompleted building in place of your pension fund as collateral.

Yes. As far as your Tier 3 fund is up to the requisite 20% of the loan amount, you can apply.

Once you have your documentation, submit it to your payroll consultant and this will be presented to the Revenue Authority for you to benefit from the tax incentives.

If your source of income is in dollars, the loan will be booked in dollars, if your source of income is in Ghana Cedis, the loan will be booked in Cedis.

In the very unfortunate event that a person passes on before paying off the loan, the bank will fall on insurance to pay it off.