GhanaReview International - The Leading Ghanaian News Agency
London New York Accra
GRi Latest News
Monday 29 April 2024

2021-03-16

[I] UK defends Oxford Covid vaccine over fears of blood clots
[N] COVID-19: Continue using AstraZeneca vaccine – WHO
[S] Preko: Expect a very competitive 2nd round
[S] Clubs owe coaches five months’ salary
[S] Legon Cities: Asamoah Gyan investment has yielded good returns
[B] Pursue demands through negotiation, arbitration – Telcos told
[A] Tension in Dixcove following beating of chief to pulp
[B] Don’t approve new fuel levies – COPEC to MPs
[B] There’s no justification for newly proposed petroleum taxes – Wereko-Brobby
[A] Apam: Burial service for drowned teens to be held today
[N] Publisher, Badu Nkansah, apologises for ‘offensive Ewe’ textbooks
[N] Parliament’s Volta Caucus condemns ethnocentric publication in history book
[N] Ghanaians to pay tax for Covid-19 ‘free water’ enjoyed to fill economic gap

2021-03-15

[N] NaCCA orders withdrawal of unapproved textbooks
[B] Ghana prepares to issue $5 billion Eurobond
[N] Brain tumor patient appeals for GH¢ 30,000.00 for surgery
[N] AIMS Forum to mark International Mathematics Day
[N] Tema Sewer System: Ambitious project to address predicament
[N] A 21-year-old man stabbed to death at Effia
[N] Estate developers laud government’s decision to aid rent advance payments
[N] Let’s prioritize STEM; It’s the new niche for education policy – Ntim Fordjour
[N] 12 new deaths push toll 679; active cases now 3,994
[N] Over 400,000 Ghanaians vaccinated so far – Oppong Nkrumah
[N] Prof Allotey’s 9 Aug birthday must be made National Maths Day – Prince Armah
[N] Telecom workers to embark on strike from today
[N] NDC won the 2020 election hands down – Hannah Bissiw claims
[B] There’ll be ‘bitter hardship’ for Ghanaians because of 2021 budget – Forson
[N] Asiedu Nketia should be NDC running mate for NDC victory 2024 – Atubiga
[N] Rawlings kept over 20 wild dogs at his Ridge Residence alone – Hannah Bissiw

2021-03-14

[A] Kinaata’s Things Fall Apart can’t be called a gospel song
[S] Boxing legend ‘Marvellous’ Marvin Hagler dies aged 66
[B] 2021 budget designed to lift Ghana out of challenges imposed by COVID – Alan
[B] I’ll support Agyapa deal 2,000% – MP Egyapa Mercer
[S] What I’m seeing in training is massive–Mubarak Wakaso
[B] Notorious Wa thieves transporting pregnant goats involved in accident
[N] NEWSPut ‘petty politics’ aside and support Akufo-Addo, Bawumia
[B] Ghana risks losing €258m earmarked for the 2nd phase of Kejetia market
[S] Tribute: Henry Atta Ameyaw paid his dues to Hearts of Oak
[S] Why Wilfried Zaha has decided against taking the knee in Premier League games
[S] GFA fix new date for start of second round
... go Back
 
Business

[ 2014-10-25 ]

Fortiz can answer questions over where millions of second tier pensions may be held
A year ago there were serious allegations by many
financial analysts that funds used by Fortiz for
the purchase of Merchant Bank, now Universal
Merchant Bank were made available to them by the
Bank of Ghana via the Temporary Pension Fund
Account (TPFA) or the Tier 2 Pension funds, being
held at the Central Bank.

The allegations become serious in view of the fact
that one Mawuli Hedo, a director of Fortiz, was
also a director at First Banc, the Scheme
Administrators of the Temporary Pension Fund
Account. First Banc was appointed to be the
Administrators of the TPFA, with Bank of Ghana
serving as the Custodial Bank

In January 2010, the TPFA was set up to
provisionally administer the Tier 2 contributions,
pending the licensing of Trustees and the
registration of the Pension Schemes. Employers
from January 2010 remitted 5% (Tier 2
contributions) of their employees’ salaries to
the TPFA, adding that this continued for most
employers till October 2012. It still continues.

The licensing of Corporate Trustees, Fund Managers
and Pension Fund Custodians - purposely
established to fully administer the Tiers 2 and 3
schemes -- was only done by the National Pensions
Regulatory Authority on March 16, 2012.

The NPRA finally, after almost a 3-year wait
without much information to workers and service
providers, registered Pension Schemes at the end
of October 2012. Full implementation under the
reforms - Act 766 - thus started in November
2012.

Even though the National Pensions Regulatory
Authority indicated that it was going to invest
the Temporary Pension Fund Account, which was
being administered by First Banc, in Treasury
Bills pending the registration of Pension Schemes,
provisional statements released by NPRA in October
2012 indicated a return on investment of 2.75% per
annum. This was disappointing, given that the
average Treasury bill returns between January 2010
and October 2012 was around 15% per annum. Besides
the provisional statement issued back then covered
a period of 18 months instead of the 34 months
period (January 2010 to October 2012) over which
contributions had been made into the TPFA. This
raises fundamental questions as to what was done
with the proceeds from the TPFA administered by a
director of FORTIZ.

One of the serious implications of this situation
is that people who were 54 years and younger when
implementation started in January 2010 WILL NOT
get the full value of their lump-sum benefits,
upon retirement at 60. Thus, all Ghanaian workers
- both private sector or public sector workers -
who were 54 years old or younger as at January
2010 will not get their full lump-sum benefits
from Tier 2 Pension Schemes as NPRA is still
holding on to 58 months of workers contributions
and accrued benefits. There is no word from the
National Pensions Regulatory Authority as to when
these funds will be paid to the contributors or
even how it will be paid.

It is recommended that all activities of the TPFA
should be audited by an external auditor and
accrued contributions in the TPFA should be
transferred into the registered Tier 2 Pension
Schemes selected by the various employers.

The Bank of Ghana should submit a report on its
stewardship of the TPFA.


Source - Franklin Cudjoe



... go Back

 
Add YOUR View here

Ghana Review International (GRi) is published by Micromedia Consultants Ltd. T/A MCL - a wholly Ghanaian owned news agency. GRi is an independent publication and is non-aligned to any political party or interest group, within or outside of Ghana. It is a reliable source of information for Ghanaians and non-Ghanaians alike. This magazine will be of interest to any person with an interest in Ghana, Ghanaians and Africans, wherever in the world they live. This website is the on-line arm of the publication. It contains news and reviews on Ghana and the international communities.

All pages are © Copyright Ghana Review International (GRi) 1994 - 2021