Firms registered to operate the second and third tier pension schemes are keenly preparing to take advantage of new business opportunities as more people are expected to register with them.
Latest information from the National Pension Regulatory Authority indicates that close to 60 entities have been approved and licensed to operate as corporate trustees, pension fund custodians or pension fund managers.
Out of the number, 31 entities have been registered as Pension Fund Managers while 13 have been approved to operate as Pension Fund Custodians and 15 are expected to act as Corporate Trustees.
The corporate trustees include Petra Trust, Metropolitan Pensions Trust Ghana, Pensions Alliance Trust, Providentlife Trust, Universal Pensions Master Trust, Secure Pensions Trust, Enterprise Trustees, United Pension Trustees, Axis Pension Trust, General Trust Company, Glico Pensions Trustee, Negotiated Benefits Trust, Stallion Trust & Administration, NTHC Trustees And Hedge Pensions Trust.
Information indicates that all the 13 Pension Fund custodians are operators in the banking sector while the fund managers are constitute a mixture of banks, investment firms and other financial players.
The National Pensions Law enacted in 2008 led to the introduction of a three-strand pension scheme comprising two mandatory schemes and one voluntary scheme popularly referred to as first tier, second and third tier.
The first two tiers under the scheme are mandatory while the third tier is voluntary.
The first tier holds the mandatory contributions to Social Security and National Insurance Trust (SSNIT) for national health insurance and monthly pension payments after retirement.
Additionally, the second tier is a mandatory contribution to an individual’s personal retirement savings while the third tier is a voluntary contribution to an individual’s personal retirement savings where after retirement the individual receives monthly payments.
With the publication of the list of companies licensed to operate under the new law by the NPRA, Rev Kweku Osei Bimpong, General Manager, Administration and Human Resource at SSNIT said, “It should be clear that the new game has started.”
He said SSNIT intends to strengthen its position as the pioneer pension retirement benefit provider.
“We will be the provider with reputation for efficiency, reliability and dependability and superior performance, this will not come by chance, it will require a strong sense of commitment.”
Sam Pee Yalley, Chief Executive Officer (CEO) of the National Pension Regulatory Authority, maintained that the firms could capitalize on many opportunities under the new pension law, adding, “The reform has arrived and it is here to stay.”
By Emelia Ennin Abbey