Students urged to enroll on pensions scheme to ensure adequate income

By Patience Gbeze/Edward Dankwah

Accra, Oct 27, GNA – Mr Hayford Attah Krufi, Chief Executive Officer (CEO), National Pensions Regulatory Authority (NPRA), has urged students to enroll on the pensions scheme, especially the third tier to prepare adequately for decent retirement income and security in future.

He said according to the laws of Ghana, pension contributions could begin as early as 15 years, stating that it was important to note that one does not enroll on the pensions scheme when nearing their retirement stages.

The CEO said, “15 years gives you a very long time, between 15years and 60 years of contribution, and that gives you a meaningful retirement income security.”

“You should not have huge sums of money before signing up, you do not have to be paying every month, week or so often but as and when you get anything, you can go to your scheme operator and top up,” he added.

Mr Krufi said with the voluntary pension, 50 per cent of a clients’ contribution went into the pensions scheme and the other into a savings scheme dependent on the agreement with the scheme providers, where the savings could be accessed at any point in time.

“The pension definitely goes towards your retirement and so that flexibility is there for anyone who wants to sign on to the third tier of the scheme,” he stressed.

The CEO advised Ghanaians to take advantage of the scheme for a secured future, indicating that the notion of pensions being for salaried workers, formal sector workers or the aged was a myth.

Mr Krufi said this at the NPRA’s Fair debate contest between University of Ghana (UG), Business School and the University of Professional Studies Accra (UPSA), which formed part of this year’s Pensions Week Celebration.

The celebration was on the theme, “My Pension, My Future.”

Contestants from UG were against the motion, “The New Pensions Act 766 has made pension savings accessible to all Ghanaians,” while those of UPSA were for the motion.

Participants from UG and UPSA were pronounced winners of the debate contest with 62.5 points each.

The participants received medals each, certificates and trophies with cash prizes as both schools were pronounced winners of the contest.

The debate sought to showcase the need for Ghanaians, particularly students to enroll onto the tier three of the pensions scheme.

Mr Erasmus Agbo, Main Speaker, UG Business school, commended the NPRA for such an initiative to prepare the students as far as tier three of the pensions scheme was concerned.

He also appealed to the authority to take pragmatic efforts and measures to ensure that all and sundry had such information available to them and accessible, in order to make informed decisions regarding the scheme.

Mr Agbo advised his colleagues to enroll into the scheme, stating that, “I think it is important that we start building our future today and not tomorrow when we start working.”

Mr Kevin Ofosu Acquah, Main Speaker, UPSA, said the contest had enlightened them on the importance of the pensions scheme.

“Initially there were lots of misconceptions and assumptions concerning the pensions scheme, so knowing about the tier three of the pensions scheme and the enrollment of the informal sector onto the scheme is worth praising,” he stressed.

Mr Acquah congratulated his opponents for such a contest.

GNA