National Pensions Act, 2008 Act 766

NATIONAL PENSIONS ACT, 2008 (ACT 766)
NATIONAL PENSIONS (AMENDMENT) ACT, 2014 (ACT 883)1
ARRANGEMENT OF SECTIONS
Section
PART ONE—ESTABLISHMENT OF CONTRIBUTORY THREE-TIER PENSION
SCHEME AND NATIONAL PENSIONS REGULATORY AUTHORITY
Contributory three-tier pension scheme
1. Establishment of contributory three-tier pension scheme
2. Object of the scheme
3. Contributions to the scheme
4. Management of the schemes
National Pensions Regulatory Authority
5. Establishment of the Authority
6. Object of the Authority
7. Functions of the Authority
8. Governing body of the Authority
9. Tenure of office of members
10. Meetings of the Board
11. Disclosure of interest
12. Establishment of committees
13. Allowances
14. Regional and district offices of the Authority
15. Ministerial directives
Administrative and financial provisions
16. Chief Executive Officer
17. Functions of the Chief Executive Officer
18. Deputy Chief Executive Officer
19. Functions of Deputy Chief Executive Officer
20. Appointment of Solicitor Secretary
21. Appointment of other staff
22. Funds of the Authority
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cer
19. Functions of Deputy Chief Executive Officer
20. Appointment of Solicitor Secretary
21. Appointment of other staff
22. Funds of the Authority
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23. Accounts and audit
24. Annual report and other reports
Miscellaneous provisions to Part One
25. Engagement of consultants and experts
26. Prohibition of unauthorised disclosure of confidential information
27. Power to inspect business premises
28. Budget and work programme
29. Regulations
PART TWO—BASIC NATIONAL SOCIAL SECURITY SCHEME
Establishment of the Trust
30. Basic national social security scheme
31. Exemption from the basic national social security scheme
32. Establishment of the Trust
33. Object of the Trust
34. Functions of the Trust
35. Governing body of the Trust
36. Knowledge and understanding of Board of Trustees
37. Tenure of office of members
38. Meetings of the Board of Trustees
39. Disclosure of interest
40. Establishment of committees
41. Allowances
42. Regional and district offices of the Trust
Administrative and financial provisions
43. Director-General of the Trust
44. Functions of the Directors-General
45. Deputy Director-General
46. Appointment of other staff
47. Secretary to the Board of Trustees
48. Internal Auditor
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ions of the Directors-General
45. Deputy Director-General
46. Appointment of other staff
47. Secretary to the Board of Trustees
48. Internal Auditor
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49. Actuary of the Trust
50. Accounts and Audit
51. Annual report and other report
52. Regulation of the Trust
53. Actuarial valuation reports
54. Exemption from taxes
55. Administrative expenses
56. Permitted expenditure from Scheme Funds
57. Account of members
Employers and workers
58. Application of social security scheme
59. Entry age
60. Age Exemption
61. Social security number
62. Existing schemes
Contributions
63. Mandatory contributions
64. Penalty for non-payment of contributions
65. Multiple-employer
66. Employer not to reduce remuneration
Investments
67. Investment policy
68. Permitted investments
69. External investments
Benefits and qualifying conditions
70. Superannuation pension
71. Invalidity pension
72. Lump sum payment
73. Survivor's lump sum benefits
73A. Payment of benefit to a non-Ghanaian member
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Superannuation pension
71. Invalidity pension
72. Lump sum payment
73. Survivor's lump sum benefits
73A. Payment of benefit to a non-Ghanaian member
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74. Other benefits
75. Harzardous employment benefit
76. Qualifying conditions for pension
77. Formula for computation of pensions
78. Formula for survivors benefit computation
79. Formula for invalidity computation
80. Periodic review of pensions
81. Nomination for dependants to receive benefits
82. Reciprocal agreement
Legal proceedings
83. Offences
84. Institution of criminal proceedings
85. Offences by body of persons
86. Civil proceedings
87. Priority for payment of contributions
88. Protection against attachment
89. Exemption from Tax
90. Protection for acts done in good faith
Miscellaneous provisions
91. Functions of Trust Inspectors
92. Electronic recording and filling and transfer of documents
93. Regulation
94. Transitional provisions
PART THREE—OCCUPATIONAL PENSION SCHEMES, PROVIDENT FUND AND
PERSONAL PENSION SCHEMES AND MANAGEMENT OF THE SCHEMES
Occupational pension schemes
95. Occupational pension scheme
96. Mandatory contributions
97. Existing schemes
98. Vesting
99. Preservation of accrued benefits derived from contributions
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pational pension scheme
96. Mandatory contributions
97. Existing schemes
98. Vesting
99. Preservation of accrued benefits derived from contributions
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100. Portability of accrued benefits
101. Qualifying conditions for withdrawal of accrued benefits
102. Protection of accrued benefits
103. Assignment of benefits
104. Exemption from tax
105. Records in respect of contributions
Provident fund and personal pension schemes
106. Provident fund and personal pension scheme
107. Application
108. Voluntary contributions
109. Self-employed persons
110. Qualifying conditions for withdrawal of accrued benefits
111. Retirement benefits
112. Tax reliefs
113. Creation of encumbrance in respect of contribution
114. Assignment of benefits
115. Duty of employer in respect of personal pension scheme
116. Monitoring of provident fund contributions
117. Life insurers carrying on pension and provident fund business
118. Winding-up
Trustees
119. Independent director and independent trustee
120. Trustees
121. Functions of trustees
122. Application for a licence
123. Conditions for licence as a trustee
124. Consideration of application
125. Approval of application
126. Power to impose conditions
127. Representation to the Board
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licence as a trustee
124. Consideration of application
125. Approval of application
126. Power to impose conditions
127. Representation to the Board
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128. Waiver of conditions
129. Application for registration of occupational pension scheme as employer sponsored
scheme or master trust scheme
130. Contents of application
131. Consideration of application
132. Refusal of application
133. Certificate of registration
134. Waiver of condition
135. Application for registration as personal pension scheme
136. Contents of application
137. Consideration of application
138. Refusal of application
139. Certificate of registration
140. Power to impose, amend or waive conditions
141. Requirement for member-nominated trustees
142. Requirement for member-nominated directors of corporate trustees
143. Knowledge and understanding of individual trustees
144. Knowledge and understanding of corporate trustees
145. Fees of trustees
Pension fund managers
146. Pension fund managers
147. Functions of pension fund managers
148. Requirements for registration as a pension fund manager
149. Application for registration
150. Grant of application
151. Refusal to register
152. Dispute settlement
153. Investment policy
154. Fees of pension fund manager
Pension fund custodians
155. Pension fund custodians
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al to register
152. Dispute settlement
153. Investment policy
154. Fees of pension fund manager
Pension fund custodians
155. Pension fund custodians
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156. Functions of custodians
157. Requirement for registration as custodian
158. Conditions for registration
159. Application for registration
160. Dispute settlement
161. Fees of custodians
162. Permitted expenditure from scheme funds
163. Maximum administrative charges
164. Revocation of licence or cancellation of registration
165. Publication of list of trustees, pension fund managers and custodians
166. Proper books of accounts and audit
167. Annual reports
168. Reporting obligations of auditors, trustees, pension fund managers and custodians
169. Specific obligation of the custodian
170. Reports on frauds, forgeries, theft or other acts of dishonesty
171. Notification of dismissed staff
172. Prohibited employment
173. Penalty for non-compliance
174. Prohibited transactions
Investment of Pension Funds
175. Investment of pension fund
176. Permitted investments
177. External investments
178. Restriction on investments
179. Restriction on sale, purchase or disposal of pension fund assets
180. Additional restrictions on investment
181. Penalty for non-compliance
PART FOUR—GENERAL PROVISIONS
Supervision and examination
182. Supervision and examination
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restrictions on investment
181. Penalty for non-compliance
PART FOUR—GENERAL PROVISIONS
Supervision and examination
182. Supervision and examination
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183. Appointment of examiners
184. Power of examiners
185. Reports of the Board
186. Power of the Board to order a special examination
187. Power of the Board to gather information
188. Search warrant
Disclosure of information
189. Privileged document and information
190. Supply of information and document to foreign regulatory authorities
191. Publishing of reports
192. Register of schemes
193. Inspection of registers and information
194. Electronic filing of documents
Offences, penalties and enforcement powers
195. Misappropriation of pension funds
196. Offences relating to fraud
197. Power of the Board to apply additional sanctions
198. Offence by body corporate
199. Penalty for refusing to give information
200. General penalty
201. Order to comply
Dispute resolution
202. Resolution of disputes
203. Aggrieved persons - dispute settlement
204. Effect of settlement
205. Pensions adjudication committee
206. General indemnity
Miscellaneous provisions
207. Regulations
208. Operating guidelines and codes of practice
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05. Pensions adjudication committee
206. General indemnity
Miscellaneous provisions
207. Regulations
208. Operating guidelines and codes of practice
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209. Exemption of pension funds from attachment and liquidation
210. Act 592 amended
211. Interpretation
212. Repeals and savings
Transitional provisions
213. Enactments applicable for four years
214. Payment of pension benefits under the Cap 30 scheme
215. Death of exempt officers
216. Option for public servants under Cap 30 and other related schemes
217. Decentralisation of public sector pension management
218. Temporary Pension Fund account.
219. Accrued retirement benefits rights
220. Enactments inconsistent with this Act
221. Directives to Pension Reform Implementation Committee by Minister
SCHEDULE
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etirement benefits rights
220. Enactments inconsistent with this Act
221. Directives to Pension Reform Implementation Committee by Minister
SCHEDULE
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ACT 766
REPUBLIC OF GHANA
THE SEVEN HUNDRED AND SIXTY-SIXTH
ACT
OF THE PARLIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
NATIONAL PENSIONS ACT, 2008
AN ACT to provide for pension reform in the country by the introduction of a contributory
three-tier pension scheme; the establishment of a National Pensions Regulatory Authority to
oversee the administration and management of registered pension schemes and trustees of
registered schemes, the establishment of a Social Security and National Insurance Trust to
manage the basic national social security scheme to cater for the first tier of the contributory
three-tier scheme, and to provide for related matters. DATE OF ASSENT: 4th December, 2008.

rity scheme to cater for the first tier of the contributory
three-tier scheme, and to provide for related matters. DATE OF ASSENT: 4th December, 2008.

ENACTED by the President and Parliament:
PART ONE—ESTABLISHMENT OF CONTRIBUTORY THREE-TIER PENSION
SCHEME AND NATIONAL PENSIONS REGULATORY AUTHORITY
Contributory three-tier pension scheme
Section 1—Establishment of contributory three-tier pension scheme
There is established by this Act, a contributory three-tier pension scheme consisting of
(a) a mandatory basic national social security scheme;
(b) a mandatory fully funded and privately managed occupational pension scheme, and
(c) a voluntary fully funded and privately managed provident fund and personal pension
scheme. Section 2—Object of the scheme
The object of the scheme is to
(a) provide pension benefits to ensure retirement income security for workers,
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cheme. Section 2—Object of the scheme
The object of the scheme is to
(a) provide pension benefits to ensure retirement income security for workers,
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(b) ensure that every worker receives retirement and related benefits as and when due, and
(c) establish a uniform set of rules, regulations and standards for the administration and
payment of retirement and related benefits for workers in the public and the private sector. Section 3—Contributions to the Scheme
(1) An employer of an establishment shall deduct from the salary of every worker in the
establishment immediately at the end of the month, a worker's contribution of an amount equal
to five and half per centum of the worker's salary for the period, irrespective of whether or not
the salary is actually paid to the worker. (2) An employer of an establishment shall pay for each month in respect of each worker, an
employer's contribution of an amount equal to thirteen per centum of the worker's salary during
the month.

or each month in respect of each worker, an
employer's contribution of an amount equal to thirteen per centum of the worker's salary during
the month.

(3) Out of the total contribution of eighteen and a half per centum an employer shall within
fourteen days from the end of each month transfer the following remittances to the mandatory
schemes on behalf of each worker
(a) thirteen and half per centum to the first tier mandatory basic national social security scheme;
and
(b) five per centum to the second tier mandatory occupational pension scheme. (4) The minimum contribution is eighteen and half per centum of the approved monthly
equivalent of the national daily minimum wage. (5) Despite any agreement or understanding to the contrary, an employer is not entitled to
deduct
(a) or otherwise recover the employer's own contribution from the worker's salary; or
(b) the worker's contribution for an earlier contribution period from the salary in respect of a
later period.

ntribution from the worker's salary; or
(b) the worker's contribution for an earlier contribution period from the salary in respect of a
later period.

(6) An employer is entitled to make deductions under subsection (5) (b) if
(a) the failure to make the deduction was due to a false declaration made in writing by the
worker at the time of employment; or
(b) the 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
designated officer of the National Pensions Regulatory Authority set up under section 5 of this
Act. (7) Where an employer deducts a contribution from the salary of a worker, the contribution
shall be held by the employer in trust for the purpose of this Act until it is remitted to the
relevant schemes. (8) Subject to guidelines that may be issued by the Board, any person who is not covered under
the first or second tier may make voluntary contributions under the third tier. 11

hat may be issued by the Board, any person who is not covered under
the first or second tier may make voluntary contributions under the third tier. 11

(9) A person to whom the first and second tiers apply may in addition to the total contributions
being made by the employee and the employer, make voluntary contributions to a scheme under
the third tier of the Scheme. (10) An employer who fails to remit total contributions within the time stipulated in subsection
(3) commits an offence and is liable on summary conviction to a fine of two thousand penalty
units or to a term of imprisonment for two years or to both. Section 4—Management of the schemes
(1) The basic national social security scheme shall operate under the Trust established under
section 32 of this Act. (2) The occupational pension scheme, provident fund scheme, personal pension scheme and
other privately managed pension schemes shall be managed by trustees approved by the Board. National Pensions Regulatory Authority
Section 5—Establishment of the Authority
(1) There is established by this Act a body to be known as the National Pensions Regulatory
Authority. (2) The Authority is a body corporate with perpetual succession and a common seal and may
sue and be sued in its corporate name.

Regulatory
Authority. (2) The Authority is a body corporate with perpetual succession and a common seal and may
sue and be sued in its corporate name.

(3) The Authority may for the performance of its functions acquire and hold movable or
immovable property and may enter into a contract or any other transaction. (4) Where there is hindrance to the acquisition of property, the property may be acquired for
the Authority under the State Property and Contracts Act 1960 (C.A. 6) or the State Lands Act
1962 (Act 125) and the costs shall be borne by the Authority. Section 6—Object of the Authority
The object of the Authority is to regulate and monitor the operation of the Scheme and ensure
the effective administration of pensions in the country.

The object of the Authority is to regulate and monitor the operation of the Scheme and ensure
the effective administration of pensions in the country.

Section 7—Functions of the Authority
To achieve its object the Authority shall:
(a) be responsible for ensuring compliance with this Act;
(b) register occupational pension schemes, provident funds and personal pension schemes;
(c) issue guidelines for the investment of pension funds;
(d) approve, regulate and monitor trustees, pension fund managers, custodians and other
institutions that deal with pensions as the Authority may determine;
(e) establish standards, rules and guidelines for the management of pension funds under this
Act;
(f) regulate the affairs and activities of approved trustees and ensure that the trustees administer
the registered schemes;
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funds under this
Act;
(f) regulate the affairs and activities of approved trustees and ensure that the trustees administer
the registered schemes;
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(g) regulate and monitor the implementation of the Basic National Social Security Scheme;
(h) carry-out research and ensure the maintenance of a national data bank on pension matters;
(i) sensitise the public on matters related to the various pension schemes;
(j) receive and investigate complaints of impropriety in respect of the management of pension
schemes;
(k) promote and encourage the development of the pension scheme industry in the country;
(l) receive, and investigate grievances from pensioners and provide for redress;
(m) advise government on the general welfare of pensioners;
(n) advise government on the overall policy on pensions in the country;
(o) request information from any employer, trustee, pension fund manager or custodian, any
other person or institution on matters related to retirement benefit;
(p) charge and collect fees as the Authority may determine;
(q) impose administrative sanctions or fines; and
(r) perform any other functions that are ancillary to the object of the Authority.

ty may determine;
(q) impose administrative sanctions or fines; and
(r) perform any other functions that are ancillary to the object of the Authority.

Section 8—Governing body of the Authority
(1) The governing body of the Authority is a Board consisting of
(a) a chairperson,
(b) the Chief Executive of the Authority,
(c) one person nominated by the President,
(d) a representative of the Ministry responsible for pensions, not below the rank of a director,
(e) a representative of the Bank of Ghana,
(f) a representative of the Securities and Exchange Commission,
(g) two representatives of Organised Labour,
(h) one representative of the Ghana Employers' Association,
(i) one representative of the National Pensioners Association, and
(j) a representative of the Attorney-General and Minister for Justice not below the rank of a
Principal State Attorney. (2) The chairperson and the other members of the Board shall be appointed by the President in
accordance with article 70 of the Constitution. (3) The President may, in appointing the members of the Board take into account persons with
experience in the following:
(i) finance and investment,
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) The President may, in appointing the members of the Board take into account persons with
experience in the following:
(i) finance and investment,
13

(ii) law,
(iii) accounting,
(iv) pension management or actuarial science,
(v) business administration, or
(vi) other related areas of expertise. (4) The Board shall ensure the proper and effective performance of the functions of the
Authority. Section 9—Tenure of office of members
(1) A member of the Board shall hold office for a period not exceeding three years and is
eligible for re-appointment but a member shall not be appointed for more than two terms. (2) Subsection (1) does not apply to the Chief Executive. (3) A member of the Board may at any time resign from office in writing addressed to the
President through the Minister. (4) A member of the Board, who is absent from three consecutive meetings of the Board
without reasonable excuse ceases to be a member of the Board. (5) The President may by letter addressed to a member revoke the appointment of that member. (6) Where a member of the Board is, for a sufficient reason, unable to act as a member, the
Minister shall determine whether the inability would result in declaration of a vacancy.

d is, for a sufficient reason, unable to act as a member, the
Minister shall determine whether the inability would result in declaration of a vacancy.

(7) Where there is a vacancy
(a) under subsection (2), (3) or (4) or section 11 (2), or
(b) as a result of a declaration under subsection (6) or
(c) by reason of the death of a member
the Minister shall notify the President of the vacancy and the President shall appoint a person
to fill the vacancy. Section 10—Meetings of the Board
(1) The Board shall meet at least once every three months for the dispatch of business at the
times and in the places determined by the chairperson. (2) The chairperson shall at the request in writing of not less than one-third of the membership
of the Board convene an extraordinary meeting of the Board at the place and time determined
by the chairperson. (3) The quorum at a meeting of the Board is seven members of the Board or a greater number
determined by the Board in respect of an important matter. (4) The chairperson shall preside at meetings of the Board and in the absence of the chairperson,
a member of the Board elected by the members present from among their number shall preside. 14

ngs of the Board and in the absence of the chairperson,
a member of the Board elected by the members present from among their number shall preside. 14

(5) Matters before the Board shall be decided by a majority of the members present and voting
and in the event of an equality of votes, the person presiding shall have a casting vote. (6) The Board may co-opt a person to attend a Board meeting but that person shall not have a
voting right. (7) The proceedings of the Board shall not be invalidated by reason of a vacancy among the
members or defect in the appointment or qualification of a member. (8) Subject to this section, the Board may determine the procedure for its meetings. Section 11—Disclosure of interest
(1) A member of the Board who has an interest in a matter for consideration by the Board shall
disclose in writing the nature of that interest and is disqualified from participating in the
deliberations of the Board in respect of that matter. (2) A member who contravenes subsection (1) ceases to be a member. Section 12—Establishment of committees
(1) The Board may establish committees consisting of members of the Board or non-members
or both to perform a function. (2) A committee of the Board may be chaired by a member of the Board. (3) Section 11 applies to members of committees of the Board.

erform a function. (2) A committee of the Board may be chaired by a member of the Board. (3) Section 11 applies to members of committees of the Board.

Section 13—Allowances
Members of the Board and members of a committee of the Board shall be paid the allowances
approved by the Minister in consultation with the Minister responsible for Finance. Section 14—Regional and district offices of the Authority
(1) The Board may establish regional and district offices of the Authority in each regional
capital and in the district determined by the Board. (2) A regional or district office of the Authority shall perform the functions of the Authority in
the region or district that the Board may direct. Section 15—Ministerial directives
The Minister may give directives to the Board on matters of policy. Administrative and financial provisions
Section 16—Chief Executive Officer
(1) The President shall, in accordance with article 195 of the Constitution, appoint a person
with expertise in pensions, actuarial science, insurance or related field as the Chief Executive
Officer of the Authority. (2) The Chief Executive Officer shall hold office on the terms and conditions specified in the
letter of appointment. Section 17—Functions of the Chief Executive Officer
15

e Officer shall hold office on the terms and conditions specified in the
letter of appointment. Section 17—Functions of the Chief Executive Officer
15

(1) The Chief Executive Officer is responsible for the day-to-day administration of the affairs
of the Authority and is answerable to the Board in the performance of functions under this Act. (2) The Chief Executive Officer shall perform any other functions determined by the Board. (3) The Chief Executive Officer may delegate a function to an officer of the Authority but shall
not be relieved from the ultimate responsibility for the performance of the delegated function. Section 18—Deputy Chief Executive Officer
(1) The President shall in accordance with article 195 of the Constitution appoint a person with
the relevant academic and professional qualifications and experience in pension matters,
insurance, actuarial science or other related fields as the Deputy Chief Executive Officer of the
Authority. (2) The Deputy Chief Executive Officer shall hold office on the terms and conditions specified
in the letter of appointment. Section 19—Functions of Deputy Chief Executive Officer
The Deputy Chief Executive Officer shall
(a) perform functions that the Chief Executive Officer may assign, and
(b) act in the absence of the Chief Executive Officer.

Executive Officer shall
(a) perform functions that the Chief Executive Officer may assign, and
(b) act in the absence of the Chief Executive Officer.

Section 20—Appointment of Solicitor Secretary
(1) The President shall in accordance with article 195 of the Constitution appoint a Solicitor
Secretary for the Authority. (2) The Solicitor Secretary shall be
(a) responsible to the Chief Executive,
(b) the secretary to the Board,
(c) in-charge of the Legal department, and
(d) perform other functions that may be assigned to the Solicitor Secretary by the Board or the
Chief Executive. Section 21—Appointment of other staff
(1) The President shall in accordance with article 195 of the Constitution appoint other staff of
the Authority that are necessary for the proper and effective performance of its functions. (2) Other public officers may be transferred or seconded to the Authority or may otherwise
give assistance to it. (3) The Authority may engage the services of advisers on the recommendations of the Chief
Executive Officer. Section 22—Funds of the Authority
The funds of the Authority include
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he services of advisers on the recommendations of the Chief
Executive Officer. Section 22—Funds of the Authority
The funds of the Authority include
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(a) moneys provided by Parliament,
(b) fines, fees, commissions and income accruing to the Board in the performance of its
functions,
(c) donations, grants and gifts, and
(d) any other moneys that are approved by the Minister responsible for Finance. Section 23—Accounts and audit
(1) The Board shall keep books of account and proper records in relation to them in the form
approved by the Auditor-General. (2) The Board shall submit the accounts of the Authority to the Auditor-General for audit within
three months after the end of the financial year. (3) The Auditor-General shall, not later than three months after the receipt of the accounts,
audit the accounts and forward a copy of the audit report to the Minister. (4) The Internal Audit Agency Act, 2003 (Act 658) applies to this Act. (5) The financial year of the Authority is the same as the financial year of the Government. Section 24—Annual report and other reports
(1) The Board shall within one month after the receipt of the audit report, submit an annual
report to the Minister covering the activities and the operations of the Authority for the year to
which the report relates.

report, submit an annual
report to the Minister covering the activities and the operations of the Authority for the year to
which the report relates.

(2) The annual report shall include the report of the Auditor-General. (3) The Minister shall, within one month after the receipt of the annual report, submit the report
to Parliament with a statement that the Minister considers necessary. (4) The Board shall also submit to the Minister any other reports which the Minister may
require in writing. Miscellaneous provisions
Section 25—Engagement of consultants and experts
The Board may engage the services of consultants or other experts on terms and conditions
determined by the Board. Section 26—Prohibition of unauthorised disclosure of confidential information
(1) A person in the discharge of duties under this Act shall not disclose confidential information
obtained by that person unless authorised by the Board to do so. (2) A person who contravenes subsection (1) commits an offence and is liable on summary
conviction to a fine of two hundred and fifty penalty units or to a term of imprisonment of not
more than one year or to both. Section 27—Power to inspect business premises
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wo hundred and fifty penalty units or to a term of imprisonment of not
more than one year or to both. Section 27—Power to inspect business premises
17

(1) A person authorised by the Board may, for the purpose of ensuring compliance with the
provisions of this Act
(a) between the hours of 8.00 a.m. and 5.00 p.m. enter any premises in which an employer or
self-employed person operates business for the purpose of inspection and examination;
(b) require a person to produce a record required to be kept under this Act in that person's
possession and inspect and make copies where necessary;
(c) make inquiries to ascertain whether the requirements of this Act are being complied with
by employees and self-employed persons;
(d) seize anything which appears to be evidence of an offence against this Act; and
(e) exercise other powers that may be conferred by Regulations. (2) Where premises are private dwellings, an authorised person may enter those premises under
a warrant issued by a Court of competent jurisdiction.

. (2) Where premises are private dwellings, an authorised person may enter those premises under
a warrant issued by a Court of competent jurisdiction.

Section 28—Budget and work programme
The Chief Executive Officer shall not later than six months before the commencement of each
financial year prepare and submit to the Board for approval
(a) a work programme containing a general description of the work and activities that the
Board plans to undertake, and
(b) estimates of the Authority's expected expenditure and income. Section 29 —Regulations
The Minister in consultation with the Board, may make Regulations for the effective
implementation of this Part. PART TWO—BASIC NATIONAL SOCIAL SECURITY SCHEME
Establishment of the Trust
Section 30—Basic national social security scheme
(1) The basic national social security scheme shall operate under the Trust established under
section 32 of this Act. (2) Each worker of an establishment or an institution shall pay a monthly contribution to the
social security scheme. (3) Self-employed persons who opt to join the scheme shall pay a monthly contribution to the
social security scheme. Section 31—Exemption from the basic national social security scheme
Section 30 does not apply to officers and men of the Ghana Armed Forces and any other person
who is expressly exempted by law.

social security scheme
Section 30 does not apply to officers and men of the Ghana Armed Forces and any other person
who is expressly exempted by law.

Section 32—Establishment of the Trust
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Section 32—Establishment of the Trust
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(1) There is established by this Act a body known as the Social Security and National Insurance
Trust. (2) The Trust is a body corporate with perpetual succession and a common seal and may sue
and be sued in its corporate name. (3) The Trust may for the performance of its functions acquire and hold movable or immovable
property, and may enter into a contract or any other transaction. (4) Where there is hindrance to the acquisition of property, the property may be acquired for
the Trust under the State Property and Contracts Act, 1960 (C.A. 6) or under the State Land[sic]
Act 1962, (Act 125) the cost shall be borne by the Trust. Section 33—Object of the Trust
The object of the Trust is to operate the basic national social security scheme referred to as the
social security scheme and other schemes as determined by law on the recommendations of the
National Pensions Regulatory Authority.

referred to as the
social security scheme and other schemes as determined by law on the recommendations of the
National Pensions Regulatory Authority.

Section 34—Functions of the Trust
To achieve its object the Trust shall
(a) operate the basic national social security pension scheme and other schemes as may be
prescribed by law;
(b) have a Fund into which shall be paid the contributions and any other moneys as may be
required under this Act;
(e) be responsible for the general administration of the social security scheme and regulations
made under it;
(d) ensure the provision of social protection for the working population for various
contingencies including old age, invalidity and death;
(e) be responsible for the administration and investment of funds within the framework of
general directives issued by the Board of Trustees and approved by the Authority;
(f) collaborate with other complementary social protection schemes in respect of specified
operational and administrative functions to achieve efficiency, cost savings and avoidance of
duplication of functions;
(g) have general control of the funds and investments of the social security scheme and the
management of the Trust; and
(h) perform any other functions that are ancillary to the objects of the Trust.

nts of the social security scheme and the
management of the Trust; and
(h) perform any other functions that are ancillary to the objects of the Trust.

Section 35—Governing body of the Trust
(1) The governing body of the Trust is a Board of Trustees consisting of
(a) a chairperson,
(b) two persons nominated by the President, at least one of whom is a woman,
(c) two representatives of Employers' Associations,
19

(a) a chairperson,
(b) two persons nominated by the President, at least one of whom is a woman,
(c) two representatives of Employers' Associations,
19

(d) four representatives of Organised Labour,
(e) one representative of National Pensioners' Association,
(f) one representative of the Ministry responsible for Finance not below the rank of a Director,
(g) one representative of the Security Services who is not a member of the Ghana Armed
Forces, and
(h) the Director-General of the Trust. (2) The members of the Board of Trustees shall be appointed by the President in accordance
with article 70 of the Constitution. (3) The Board of Trustees shall ensure the proper performance of the functions of the Trust. Section 36—Knowledge and Understanding of Board of Trustees
(1) A member of the Board of Trustees must, in relation to the social security scheme, have
knowledge and understanding of
(a) the social security law and any regulations made under it;
(b) any statement of investment policy for the time being maintained under section 67 of this
Act;
(c) any other policy document for the time being adopted by the Board of Trustees relating to
the administration of the scheme generally.

of this
Act;
(c) any other policy document for the time being adopted by the Board of Trustees relating to
the administration of the scheme generally.

(2) The degree of knowledge and understanding required of the Board of Trustees is that
necessary to enable the individual to perform the functions as a member of the Board of
Trustees of the social security scheme. (3) The Trust shall ensure that a member of the Board of Trustees acquires the relevant
knowledge through appropriate programmes relating to pensions and trusts. Section 37—Tenure of office of members
(1) A member of the Board of Trustees shall hold office for a period not exceeding three years
and is eligible for re-appointment but a member shall not be appointed for more than two terms
in succession. (2) Subsection (1) does not apply to the Director-General of the Trust. (3) A member of the Board of Trustees may at any time resign from office in writing addressed
to the President through the Minister. (4) A member of the Board of Trustees who is absent from three consecutive meetings of the
Board without sufficient reason ceases to be a member of the Board of Trustees. (5) The President may by letter addressed to a member revoke the appointment of that member.

nt reason ceases to be a member of the Board of Trustees. (5) The President may by letter addressed to a member revoke the appointment of that member.

(6) Where a member of the Board of Trustees is, for a sufficient reason, unable to act as a
member, the Minister shall determine whether the inability would result in the declaration of a
vacancy. 20

or a sufficient reason, unable to act as a
member, the Minister shall determine whether the inability would result in the declaration of a
vacancy. 20

(7) Where there is a vacancy
(a) under subsection (2), (3) or (4) or section 39 (2), or
(b) as a result of a declaration under subsection (6), or
(c) by reason of the death of a member,
the Minister on the advice of the Board of Trustees shall notify the President of the vacancy
and the President shall appoint a person to fill the vacancy. Section 38—Meetings of the Board of Trustees
(1) The Board of Trustees shall meet at least once every three months for the despatch of
business at the times and in the places determined by the chairperson. (2) The chairperson shall at the request in writing of not less than one-third of the membership
of the Board of Trustees convene an extraordinary meeting of the board of trustees at the place
and time determined by the chairperson. (3) The quorum at a meeting of the Board of Trustees is seven members including the Director
General or any other person acting as Director-General. (4) The chairperson shall preside at meetings of the Board of Trustees and in the absence of
the chairperson, a member of the Board of Trustees elected by the members present from
among their number shall preside.

rustees and in the absence of
the chairperson, a member of the Board of Trustees elected by the members present from
among their number shall preside.

(5) Matters before the Board of Trustees shall be decided by a majority of the members present
and voting and in the event of an equality of votes, the person presiding shall have a casting
vote. (6) The Board of Trustees may co-opt a person to attend a Board of Trustees meeting but that
co-opted person shall not vote on a matter for decision at the meeting. (7) The proceedings of the Board of Trustees shall not be invalidated by reason of a vacancy
among the members or a defect in the appointment or qualification of a member. (8) Subject to this section, the Board of Trustees may determine the procedure for the Board of
Trustee's meetings. Section 39—Disclosure of interest
(1) A member of the Board of Trustees who has an interest in a matter for consideration by the
Board of Trustees shall disclose in writing the nature of that interest and is disqualified from
participating in the deliberations of the Board of Trustees in respect of that matter. (2) A member who contravenes subsection (1) ceases to be a member.

ticipating in the deliberations of the Board of Trustees in respect of that matter. (2) A member who contravenes subsection (1) ceases to be a member.

Section 40—Establishment of committees
(1) The Board of Trustees may establish committees consisting of members of the Board of
Trustees or non-members or both to perform a function. (2) A committee of the Board of Trustees may be chaired by a member of the Board of Trustees. (3) Section 39 applies to members of committees of the Board of Trustees. 21

he Board of Trustees may be chaired by a member of the Board of Trustees. (3) Section 39 applies to members of committees of the Board of Trustees. 21

Section 41—Allowances
Members of the Board of Trustees and members of a committee of the Board of Trustees shall
be paid allowances approved by the Minister in consultation with the Minister responsible for
Finance. Section 42—Regional and district offices of the Trust
(1) The Board of Trustees may establish regional and district offices of the Trust in each
regional capital and in the districts as the Board of Trustees may determine. (2) A regional or district office of the Trust shall perform the functions of the Trust in the region
or district that the Board of Trustees may direct. Administrative and financial provisions
Section 43—Director-General of the Trust
(1) The President shall, in accordance with article 195 of the Constitution appoint a Director
General of the Trust. (2) The Director-General shall hold office on the terms and conditions specified in the letter of
appointment. Section 44—Functions of the Director-General
(1) The Director-General is responsible for the day-to-day administration of the affairs of the
Trust and is answerable to the Board of Trustees in the performance of the functions under this
Act.

e day-to-day administration of the affairs of the
Trust and is answerable to the Board of Trustees in the performance of the functions under this
Act.

(2) The Director-General shall perform any other functions determined by the Board of
Trustees. (3) The Director-General may delegate a function to an officer of the Trust but shall not be
relieved from the ultimate responsibility for the performance of the delegated function. Section 45—Deputy Directors-General
(1) The President may appoint for the Trust such Deputy Director-Generals as may be
necessary. (2) A Deputy Director-General shall hold office on the terms and conditions specified in the
letter of appointment. Section 46—Appointment of other staff
(1) The President shall in accordance with article 195 of the Constitution, appoint for the Trust
other staff necessary for the proper and effective performance of the functions of the Trust. (2) The Trust may engage the services of advisers on the recommendations of the Board of
Trustees. Section 47—Secretary to the Board of Trustees
(1) The Board of Trustees shall have a Secretary. 22

rs on the recommendations of the Board of
Trustees. Section 47—Secretary to the Board of Trustees
(1) The Board of Trustees shall have a Secretary. 22

(2) The Secretary shall, subject to the directions of the Board of Trustees, arrange the business
for the Board of Trustees and be responsible for the recording and keeping of minutes of
proceedings of the meetings of the Board of Trustees. (3) The Secretary shall perform any other functions that the Board of Trustees may direct or as
the Director-General may delegate. Section 48—Internal auditor
(1) The Trust shall have an internal auditor who shall be responsible to the Director-General. (2) The Internal Auditor shall
(a) prepare a report on the internal audit work carried-out at intervals of three months or such
shorter period determined by the Board and submit the report to the Board of Trustees. (b) make any observations in each report as appear necessary on the compliance, operational
and conduct of the financial affairs of the Trust during the period to which the report relates;
(c) send a copy of each report prepared under this section to the Director-General; and
(d) perform other functions that the Director-General may prescribe. Section 49— Actuary of the Trust
(1) The Trust shall have an Actuary to manage the actuarial functions of the social security
scheme.

l may prescribe. Section 49— Actuary of the Trust
(1) The Trust shall have an Actuary to manage the actuarial functions of the social security
scheme.

(2) The Actuary shall be responsible to the Director-General. (3) The Actuary shall
(a) assess the social security scheme in respect of the
(i) suitability of the financial system,
(ii) adequacy of contribution rate,
(iii) long-term financial solvency of the scheme, and
(b) perform other functions that the Director-General may assign. Section 50—Accounts and audit
(1) The Board of Trustees shall keep books of account and proper records in relation to them
in the form approved by the Auditor-General. (2) The Board of Trustees shall submit the accounts of the Trust to the Auditor-General for
audit within three months after the end of the financial year. (3) The Auditor-General shall, not later than three months after the receipt of the accounts,
audit the accounts and forward a copy of the audit report to the Minister and the Board. (4) The Internal Audit Agency Act, 2003 (Act 658) applies to this Act. (5) The financial year of the Trust is the same as the financial year of the Government. Section 51—Annual report and other reports
23

es to this Act. (5) The financial year of the Trust is the same as the financial year of the Government. Section 51—Annual report and other reports
23

(1) The Board of Trustees shall within one month after the receipt of the audit report, submit
an annual report to the Minister and the Authority covering the activities and the operations of
the Trust for the year to which the report relates. (2) The annual report shall include the report of the Auditor-General. (3) The Minister shall, within one month after the receipt of the annual report, submit the report
to Parliament with a statement that the Minister considers necessary. (4) The Board of Trustees shall also submit to the Minister and the Authority any other reports
which the Minister or the Authority may require in writing. Section 52—Regulation of the Trust
The Authority shall regulate the activities of the Trust to ensure compliance with the provisions
of this Act. Section 53—Actuarial valuation reports
(1) The Trust shall obtain actuarial valuations from an external actuary
(a) at intervals of not more than one year or, if obtained for the intervening years, at intervals
of not more than three years, and
(b) in other circumstances and on other occasions that may be prescribed by the Authority.

ening years, at intervals
of not more than three years, and
(b) in other circumstances and on other occasions that may be prescribed by the Authority.

(2) An actuarial valuation is a written report prepared and signed by the actuary
(a) valuing the scheme's assets and calculating its liabilities,
(b) on developments affecting the scheme's liabilities since the last actuarial valuation was
prepared. (3) The effective date of an actuarial valuation is the date by reference to which the assets are
valued and the liabilities calculated. (4) The effective date of an actuarial report is the date by reference to which the information in
the report is stated. (5) The intervals referred to in subsection (1) (a) are between effective dates of the valuation
and shall not be more than one year
(a) after the establishment of the social security scheme, and
(b) after the effective date of the last actuarial valuation, or, if more recent, the last actuarial
report. (7) The Board of Trustees shall ensure that a valuation report is received by them within the
prescribed period after its effective date. (8) A provision in this section shall not affect any power or duty of the Board of Trustees or
managers to obtain actuarial valuations or reports at more frequent intervals in other
circumstances or on other occasions.

f the Board of Trustees or
managers to obtain actuarial valuations or reports at more frequent intervals in other
circumstances or on other occasions.

(9) An actuarial valuation or report shall be prepared in a manner to give information, contain
statements and satisfy other requirements that may be prescribed by the Board of the Authority. 24

e prepared in a manner to give information, contain
statements and satisfy other requirements that may be prescribed by the Board of the Authority. 24

(10) The Board of Trustees shall ensure that any actuarial valuation or report obtained by them
is made available to the Board of the Authority within thirty days after receipt. Section 54—Exemption from taxes
The Trust is exempted from payment of corporate income tax and subject to article 174 of the
Constitution, the Minister for Finance may, with the prior approval of Parliament, waive other
taxes in relation to the Trust. Section 55—Administrative expenses
(1) The expenses related to the administration of the social security scheme except those
expenses mentioned in subsections (2) and (3), shall be charged on the Fund in accordance
with generally accepted accounting practice in relation to pensions, subject to a maximum limit
set by the Board of Trustees in line with the general guidelines that may be issued by the
Authority and consistent with best practices of similar social security schemes. (2) The other expenses related to the provision of support services for other complementary
schemes shall be charged to the complementary schemes based on an agreed formula.

related to the provision of support services for other complementary
schemes shall be charged to the complementary schemes based on an agreed formula.

(3) The administrative expenses involved in the transfer of the two and a half per centum of
the social security contributions to the National Health Insurance Scheme shall be charged to
the National Health Insurance Authority on a formula to be agreed on by the National Health
Insurance Authority and the Trust.[As substituted by the National Pensions (Amendment) Act,
2014 Act 883 s.1]
Section 56—Permitted expenditure from scheme funds
The Board of Trustees shall not charge any expenditure or make any deductions from the social
security scheme funds other than those prescribed by the Authority or authorised under this
Act. Section 57—Account of members
(1) The Board of Trustees shall cause to be maintained for each member, an account to which
shall be credited contributions of that member. (2) The Trust shall send an annual statement of account to members of the social security
scheme which shall be sent to their current address or the last known address of the member,
except that where the member fails to provide an address, the Trust shall not be under any
obligation to send a statement of account to that member.

,
except that where the member fails to provide an address, the Trust shall not be under any
obligation to send a statement of account to that member.

Employers and workers
Section 58—Application of social security scheme
(1) The social security scheme applies to
(a) every employer and to each worker employed by its establishment;
(b) any other employer, worker and self-employed to whom the Social Security Act, 1991
(P.N.D.C.L. 247) applied immediately before the commencement of this Act, and
(c) self-employed persons, who opt to join the social security scheme. 25

P.N.D.C.L. 247) applied immediately before the commencement of this Act, and
(c) self-employed persons, who opt to join the social security scheme. 25

(2) Where a member has ceased to be employed, that member may continue to pay a monthly
contribution at the rate of thirteen and half per centum of that member's declared income or
salary. Section 59—Entry age
The minimum age at which a person may join the social security scheme is fifteen years and
the maximum age is forty-five years. Section 60—Age exemption
(1) A worker who is entitled to retirement benefits under a pension scheme in existence before
the commencement of this Act and is aged fifty years or above is exempt from the scheme. (2) Despite the provisions of subsection (1), a person who is fifty years and above and exempted
from this Act may opt to join the new scheme. (3) For members exempted under subsection (1), the employer and the worker shall continue
to contribute to the worker's retirement benefit at the same level of contribution before the
commencement of this Act until the worker retires.

tinue
to contribute to the worker's retirement benefit at the same level of contribution before the
commencement of this Act until the worker retires.

(4) Where a worker is exempted under subsection (1) but has already contributed to the second-
tier scheme, the contributions and returns of the worker under the second-tier scheme shall be
refunded to the Trust.[As substituted by the National Pensions (Amendment) Act, 2014 Act
883 s.2]
Section 61—Social security number
(1) A worker to whom the social security scheme applies shall be given a Social Security
Number on registration with the Trust. (2) The social security number is not transferable and shall be used by the worker throughout
the working life of that worker and for the purposes of this Act. (3) An employer shall not transfer or use the Social Security number of one worker for another. Section 62—Existing schemes
(1) The existence of a private or company pension provident fund, superannuation scheme or
gratuity scheme in respect of workers to whom this Act applies does not exempt the employer
or the workers from the application of this Act and an employer is responsible for deducting
contributions from the remuneration of workers and paying them along with the employer's
own contributions to the Fund at the rates specified in this Act.

ributions from the remuneration of workers and paying them along with the employer's
own contributions to the Fund at the rates specified in this Act.

(2) Despite any other provision, an employer may
(a) amend written provisions of an existing scheme with the prior approval of the governing
body of the existing scheme or with the consent of the Board of the Authority, or
(b) adjust the benefits that may be derived from the scheme to enable the payment of
contributions to be effected under this Act. Contributions
Section 63—Mandatory contributions
26

y be derived from the scheme to enable the payment of
contributions to be effected under this Act. Contributions
Section 63—Mandatory contributions
26

(1) An employer shall remit thirteen and half per centum out of the total contributions of
eighteen and a half per centum on behalf of the worker to the first tier mandatory social security
scheme within fourteen days after the end of each month to the Trust. (2) The minimum contribution is thirteen and half per centum of the approved monthly
equivalent of the national daily minimum wage. (3) Despite subsection (1) the maximum contribution shall not exceed thirteen and half per
centum of a maximum amount that may be determined periodically by the Trust in consultation
with the Board of the Authority. (4) Out of the total contributions of thirteen and half per centum received on behalf of each
member, two and half per centum shall be deducted and transferred to the National Health
Insurance Fund. (5) Where an employer deducts contribution from the salary of a worker, the contribution shall
be held by the employer in trust until remitted to the Trust. (6) Payment of contributions by an employer of an establishment to the Trust shall be
accompanied with a contribution report in a form that may be prescribed by the Trust including
electronic means.

n establishment to the Trust shall be
accompanied with a contribution report in a form that may be prescribed by the Trust including
electronic means.

(7) An employer shall submit the contribution report for that month at the end of that month,
whether the contribution is remitted to the Trust or not. (8) An employer shall remit the total contribution of eighteen and one half per cent on behalf
of a worker who does not qualify to join the social security scheme to the second tier mandatory
occupational pension scheme within fourteen days after the beginning of each month. (9) Subject to subsection (8) a percentage of the eighteen and one half per cent to be determined
by the Board of the Authority under the mandatory second tier occupational scheme shall be
utilised to purchase an annuity for life from a life insurance company licensed by the National
Insurance Commission with monthly or quarterly payments. (10) Despite an agreement or understanding to the contrary, an employer is not entitled to
(a) deduct or recover the employee's contribution from the worker's salary, or
(b) the member's contribution for an earlier contribution period from the salary in respect of a
later period.

ntribution from the worker's salary, or
(b) the member's contribution for an earlier contribution period from the salary in respect of a
later period.

(11) For the purpose of subsection (10), the employer is entitled to make those deductions if
the
(a) failure to make the deduction was due to a false declaration made in writing by the worker
at the time of employment, or
(b) failure to deduct the contribution was the result of a mistake or a clerical error in which
case the deductions shall be made according to the written instructions of a designated officer
of the Trust. Section 64—Penalty for non-payment of contributions
(1) Subject to subsection (2) if a contribution is not paid within the specified period
27

Trust. Section 64—Penalty for non-payment of contributions
(1) Subject to subsection (2) if a contribution is not paid within the specified period
27

(a) a sum equal to three per centum per month of the contribution payable shall be added to the
contribution as a penalty;
(b) the Director-General shall serve a demand notice on the defaulting employer and if payment
is not made within thirty-days after the date of service of the notice, the Director-General may
proceed to collect and recover the contribution and the penalty and the employer is liable to
prosecution by the Trust;[As substituted by the National Pensions (Amendment) Act, 2014 Act
883 s.3]
(c) if a person without reasonable excuse fails to pay the contribution and a penalty imposed
under paragraph (a), the Director-General may direct the person to pay an additional penalty
of a sum equal to three per centum of the total of the outstanding contribution and penalty
imposed under that paragraph for each month during which the default continues. (2) The Director-General may remit wholly or partly, the penalty imposed under subsection (1)
with the approval of the Board of Trustees. Section 65—Multiple-employer
Where a worker is concurrently employed by more than one employer, each employer is
responsible for only that employer's obligation under this Act.

er
Where a worker is concurrently employed by more than one employer, each employer is
responsible for only that employer's obligation under this Act.

Section 66—Employer not to reduce remuneration
An employer shall not by reason of a liability for a contribution to the scheme or for any other
charges under this Act or Regulations, reduce whether directly or indirectly, the salary or other
emoluments of a member of the scheme. Investments
Section 67—Investment policy
(1) The Board of Trustees shall ensure that
(a) a statement of investment policy is prepared and maintained for the social security scheme,
and
(b) the statement is reviewed and revised as necessary. (2) In preparing or revising a statement of investment policy, to Board of Trustees shall comply
with guidelines issued by the Authority in consultation with the Board of Trustees. (3) A statement of investment policy shall include the
(a) investment objectives;
(b) types of securities and other assets that may be acquired;
(c) the balance between the different types of securities and other assets;
(d) risk in implementing the investment policy; and
(e) return expected in implementing the investment policy. Section 68—Permitted investments
28

ts;
(d) risk in implementing the investment policy; and
(e) return expected in implementing the investment policy. Section 68—Permitted investments
28

The Trust may invest the pension fund assets in units of an investment approved by the Board
of Trustees. Section 69—External investments
Subject to the existing Bank of Ghana foreign exchange rules, the Board of Trustees in
consultation with the Minister for Finance may invest pension fund assests outside the country
except that the amount to be invested externally shall not exceed a percentage of the total funds
available for investment determined by the Authority. Benefits and qualifying conditions
Section 70—Superannuation pension
(1) A member of the social security scheme who
(a) retires on attaining the compulsory retirement age of sixty years; or
(b) retires voluntarily on attaining the age of fifty-five years and has contributed to the social
security fund for a period of not less than fifteen years in the aggregate or one hundred and
eighty months in the aggregate is entitled to a superannuation pension.

or a period of not less than fifteen years in the aggregate or one hundred and
eighty months in the aggregate is entitled to a superannuation pension.

Section 71—Invalidity pension
(1) A member of the social security scheme who becomes an invalid is entitled to invalidity
pension if
(a) the member has contributed to the Fund for not less than twelve months within the last
thirty-six months before the occurrence of the invalidity; and
(b) a medical board certifies that the member is incapable of normal gainful employment
because of the permanent physical or mental disability. (2) Where a person to whom subsection (1) applies is subsequently certified by a medical board
to have fully recovered and that person has not attained the compulsory retirement age, that
person may rejoin the scheme. Section 72—Lump sum payment
(1) Where a member of the social security scheme has made less than fifteen years contribution
to the Fund before the member retires either compulsorily or voluntarily, the member is entitled
to
(a) a lump sum of money equal to the member's contribution as benefit; and
(b) an interest of seventy-five percent at the prevailing government treasury bill rate on the
lump sum.

to the member's contribution as benefit; and
(b) an interest of seventy-five percent at the prevailing government treasury bill rate on the
lump sum.

Section 73—Survivor's lump sum benefit
(1) Where a member of the scheme dies, a lump sum benefit is payable to the deceased's family
who
(a) are dependants of the deceased; and
(b) have been validily nominated as beneficiaries of the deceased. 29

is payable to the deceased's family
who
(a) are dependants of the deceased; and
(b) have been validily nominated as beneficiaries of the deceased. 29

(2) Where no nomination was made or the nomination made is found to be invalid by the Trust,
the lump sum shall be distributed to the dependants in accordance with the Intestate Succession
Act, 1985 (P.N.D.C.L. 111). (3) Where a deceased member failed to nominate a surviving spouse and children as
beneficiaries, the spouse and children may apply to the court for a variation of the nomination
to include them. Section 73A—Payment of benefit to a non-Ghanaian member
A non-Ghanaian member of the scheme who satisfies the Trust that the member is emigrating
or has emigrated permanently from Ghana shall be paid a lump sum benefit.[As inserted by the
National Pensions (Amendment) Act, 2014 (Act 883), s.4]
Section 74—Other benefits
The Minister on the advice of the Authority and in consultation with the Board of Trustees of
the scheme may by legislative instrument prescribe other classes of benefits.

dvice of the Authority and in consultation with the Board of Trustees of
the scheme may by legislative instrument prescribe other classes of benefits.

Section 75—Hazardous employment benefit
A member of the social security scheme who has attained the age of fifty-five years and has
been a worker
(a) at an underground mine;
(b) at a steel works; or
(c) in any other employment determined as hazardous employment by the Authority
for an aggregate period of not less than one hundred and eighty months is entitled on retirement
to full retirement benefit. Section 76—Qualifying conditions for pension
(1) A person who has
(a) satisfied the minimum contribution period of not less than one hundred and eighty months,
(b) attained the age of sixty years or fifty-five years in the case of an underground mine worker
or a worker specified in subsection (2) or has opted for voluntary retirement with reduced
pension, and
(c) filed an application for superannuation benefit, is entitled to a pension payment for each
month beginning with the first month in which the person becomes entitled to the payment.

annuation benefit, is entitled to a pension payment for each
month beginning with the first month in which the person becomes entitled to the payment.

(2) A 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 any 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 that employment is entitled to full pension benefit upon
attaining the age of fifty-five years. Section 77—Formula for computation of pensions
(1) A member may be paid full or reduced pension. 30

enefit upon
attaining the age of fifty-five years. Section 77—Formula for computation of pensions
(1) A member may be paid full or reduced pension. 30

(2) The minimum pension payment shall be based on thirty-seven and half per centum" of the
average annual salary for the three best years of a member's working life.[As substituted by the
National Pensions (Amendment) Act, 2014 Act 883 s.5(a)]
(3) Where a member works beyond the minimum contribution period the amount of pension
payable shall be increased by 1.125 per centum for every additional twelve months worked up
to a maximum of sixty per centum.[As substituted by the National Pensions (Amendment) Act,
2014 Act 883 s.5(b)]
(4) Where there are grounds to suspect that the salary has been inflated with intent to defraud,
the Trust shall investigate and the right pension based on a formula determined by the Trust
shall be paid to the member. Section 78—Formula for survivors benefit computation
(1) Where a member dies having made at least twelve months contribution within the last thirty-
six months prior to the death of the member, a lump sum payment computed on the present
value of the members pension for a period of fifteen years, using the prevailing treasury bill
rate or ten percent, whichever is the lower, shall be paid to the members' nominated dependants.

of fifteen years, using the prevailing treasury bill
rate or ten percent, whichever is the lower, shall be paid to the members' nominated dependants.

(2) Where a member dies before making at least twelve months contribution within the last
thirty-six months, a lump sum equal to total contributions and interest on the lump sum at the
rate of seventy-five percentum of the Government treasury bill rate shall be paid to the
nominated dependants of the member. (3) Where a member retires but dies before the age of seventy-five years, a lump sum payment,
based on the present value of the unexpired pension of the member not exceeding fifteen years
shall be made to the nominated dependants of the member. Section 79—Formula for invalidity computation
Where a member is certified by a medical board as being invalid, the member is entitled to a
pension based on the minimum pension or the earned pension whichever is higher. Section 80—Periodic review of pensions
The Trust shall annually review the pension payment which shall be indexed to wage inflation
rates of active members or another rate determined by the Trust in consultation with the Board
of the Authority.

ch shall be indexed to wage inflation
rates of active members or another rate determined by the Trust in consultation with the Board
of the Authority.

Section 81—Nomination of beneficiaries to receive benefits
(1) A person who is required or entitled to become a member of the Social Security Scheme
shall furnish to the employer particulars concerning the dependants of the member nominated
by that member for receipt of benefits on the death of that member.[As substituted by the
National Pensions (Amendment) Act, 2014 Act 883 s.6]
(2) The employer shall enter the particulars in the prescribed form and obtain the signature or
thumbprint impression of the person concerned and forward it to the Trust. (3) An employer shall ask a potential employee to state in writing
(a) whether or not that person is a member of the scheme;
31

rward it to the Trust. (3) An employer shall ask a potential employee to state in writing
(a) whether or not that person is a member of the scheme;
31

(b) the member's account number;
(c) the name and particulars of the last establishment if any, where that person was employed;
and
(d) whether anyone has been nominated to receive the benefits as survivor. (4) Where that person was a member of the scheme, the old account number and the nominated
beneficiaries shall continue to be operative, and the Trust's attention shall be drawn to this by
the new employer. (5) Subject to subsection (3), a member of the scheme is free to update the nomination and
shall review the nominations at least once every five years and forward the nomination to the
Trust. (6) Where payment of benefit has been made to a person validly nominated or varied by a Court
order under this section, no other person shall have any other claim against the Trust. (7) Despite subsection (6), where a member of the scheme has a child sixty percent of the
survivors benefit shall be distributed to the child and forty percent to the persons nominated by
the member.

scheme has a child sixty percent of the
survivors benefit shall be distributed to the child and forty percent to the persons nominated by
the member.

Section 82—Reciprocal agreement
The Government of Ghana may enter into a reciprocal agreement with the government of
another country in which a scheme similar to the social security scheme has been established
and there may be included in the agreement the following provisions
(a) that any period of membership of a scheme in the jurisdiction of that government may be
treated as a period of membership of the social security scheme and the reverse; and
(b) that subject to agreed conditions, an amount standing to the credit of a member of the social
security scheme in Ghana who works for an employer in the jurisdiction of this country may
be transferred to the credit of the member in the scheme in another country and the reverse.

s for an employer in the jurisdiction of this country may
be transferred to the credit of the member in the scheme in another country and the reverse.

Legal proceedings
Section 83—Offences
(1) A person who
(a) fails or refuses to register any establishment owned or set up by that person or to register
any worker under this Act, or
(b) with intent to evade payment of a contribution or any other amount due knowingly makes
a false statement or representation, or produces or furnishes or causes to be produced or
furnished a document or information which that person knows to be false in a material
particular;
(c) for personal benefit or for any other person, knowingly makes a false statement or
representation or produces or furnishes, or causes to be produced or furnished, a document or
information which that person knows to be false in a material particular;
32

oduces or furnishes, or causes to be produced or furnished, a document or
information which that person knows to be false in a material particular;
32

(d) fails to pay contributions or a penalty imposed by the Trust in respect of unpaid
contributions or fails without reasonable excuse to submit or refuses to submit contribution
payment with a contribution report or accompany contribution to the Trust within the
prescribed period in the form and manner prescribed.[As substituted by the National Pensions
(Amendment) Act, 2014 Act 883 s.7]
(e) wilfully obstructs or assaults an inspector, officer or servant of the Trust in the discharge of
duties; or
(f) without reasonable excuse, proof of which shall be on that person, fails to comply with a
provision of this Act or Regulations made under this Act, is liable on summary conviction
(g) in respect of a an offence under paragraph (a) (b) or (c) to a fine not exceeding the amount
of contribution and penalty owed to the Trust or to imprisonment for a term not exceeding five
years or both, or
(h) under paragraph (d), (e) or (f) to a fine not exceeding two thousand five hundred penalty
units or to imprisonment for a term not exceeding five years or to both.

aph (d), (e) or (f) to a fine not exceeding two thousand five hundred penalty
units or to imprisonment for a term not exceeding five years or to both.

(2) Where an employee of the Trust conspires or aids and abets another person in the
commission of an offence specified in subsection (1), the employee is on summary conviction
liable to the same punishment as provided under subsection (1). Section 84—Institution of criminal proceedings
(1) Criminal proceedings under this Act and Regulations made under it may be instituted and
conducted by the Attorney-General or an officer of the Trust appointed by the Attorney
General by executive instrument. (2) A Court when convicting a person of an offence under this Act or Regulations made under
it may, in addition to the fine or imprisonment, order the person to pay to the Trust the amount
of any contribution, together with any interest or penalty on the amount due from that person
to the Trust at the date of conviction. (3) The amount may be recovered together with the requisite contribution report in the same
manner as a fine and shall be paid and credited to the Trust accounts of the members of the
social security scheme concerned where applicable. (4) The order of payment to the Trust shall be without prejudice to civil remedy.

he members of the
social security scheme concerned where applicable. (4) The order of payment to the Trust shall be without prejudice to civil remedy.

Section 85—Offences by body of persons
(1) Where an offence under this Act is committed by a body of persons, in the case of a
(a) body corporate, other than a partnership, each director or officer of the body corporate is
deemed to have committed the offence, and
(b) partnership each partner of the firm is deemed to have Committed the offence;
(2) A person shall not be convicted of an offence under subsection (1) if that person proves that
the offence was committed without the knowledge of the person or that due diligence was
exercised by the person to prevent the commission of the offence. Section 86—Civil proceedings
33

he knowledge of the person or that due diligence was
exercised by the person to prevent the commission of the offence. Section 86—Civil proceedings
33

(1) Despite any other law, a contribution to the social security scheme along with interest or a
monetary penalty payable or imposed for failure to pay in time may be recovered by action as
a debt owed to the Trust at any time within twelve years after the date when the contribution
or the penalty became due. (2) An action for the recovery of contribution and other penalties under this section may be
instituted and conducted by an authorised officer of the Trust. (3) Despite any other law, the Circuit and District Courts have power to exercise jurisdiction
in civil and criminal matters concerning social security contributions and offences created
under this Act irrespective of the amount of claim. (4) The Trust may attach the contribution of a borrower or guarantor under the Students Loans
Act, 1992 (P.N.D.C.L. 276) for the purpose of the student loans repayment.

attach the contribution of a borrower or guarantor under the Students Loans
Act, 1992 (P.N.D.C.L. 276) for the purpose of the student loans repayment.

Section 87—Priority for payment of contributions
Where on an application—
(a) by the Trust, an attachment is issued against the property of an employer in execution of a
decree against that employer and the property is seized, sold or otherwise realised in pursuance
of the execution, or
(b) of a secured creditor, the property of an employer is sold, the proceeds of the sale or any
other realisation of the property shall not be distributed to a person entitled to the distribution
until the Court ordering the sale or other realisation has made provision for the payment of the
amount due by the employer under this Act before the date of the order.

dering the sale or other realisation has made provision for the payment of the
amount due by the employer under this Act before the date of the order.

Section 88—Protection against attachment
Except as provided in this Act,
(a) the accumulations to the credit of a member of the social security scheme, contribution in
transit to the social security scheme or contributions with an employer, are incapable of being
assigned or charged and are not liable to attachment under any law or order of a Court in respect
of a debt or liability by the member, even in the event of the bankruptcy or insolvency of the
member;
(b) an amount actually or potentially standing to a member's credit on the social security
scheme at the time of the member's death and payable to the members dependants shall be free
from attachment before it is paid to the dependants;
(c) accrued contributions to the social security scheme shall be paid despite the bankruptcy or
insolvency of an employer; and
(d) the protection against attachment of contributions shall not apply to a borrower or guarantor
under the Students' Loans Scheme Law. Section 89—Exemption from Tax
(1) Tax is not payable by an employer or employee in respect of contribution towards
retirement or pension schemes under this Act. (2) Tax is not payable on the benefits received under this Act. 34

ee in respect of contribution towards
retirement or pension schemes under this Act. (2) Tax is not payable on the benefits received under this Act. 34

(3) The social security scheme and any existing scheme under this Act is an approved scheme
for ascertaining the chargeable income of a person for making the appropriate deductions under
the income tax law, and income tax shall not be paid by an employer in respect of a worker on
contributions which do not exceed thirteen and one half per centum of that person's total salary. Section 90—Protection for acts done in good faith
A suit or other legal proceedings shall not lie against a member of the Board of Trustees, an
officer or employee of the Trust in respect of anything done in good faith in pursuit of the
objectives of this Act, except that personal liability suffered by a trustee officer or employee
acting in good faith shall be indemnified by the Trust. Miscellaneous provisions
Section 91—Functions of Trust Inspectors
(1) An inspector of the Trust who has reasonable cause to believe that there are workers on
premises may enter the premises at a reasonable time to make an examination and enquiry
necessary to obtain information for the purposes of this Act. (2) The inspector shall produce identification as an employee of the Trust when making an
inspection to obtain information.

the purposes of this Act. (2) The inspector shall produce identification as an employee of the Trust when making an
inspection to obtain information.

(3) In the discharge of duties under this section, where an inspector requires an employer to
produce documents related to appointment, attendance, wages of workers and contributions or
liability of employers to contribute to the scheme or any other relevant document, the employer
shall produce the documents within seven days of receipt of the request and the inspector may
take copies of or extracts from the documents.[As substituted by the National Pensions
(Amendment) Act, 2014 Act 883 s.8]
(4) Where an establishment has discontinued its work or has been closed down and does not
have premises, the inspector may require the production of the documents related to past
transactions at a reasonable place and time, including the office of the inspector or the office
of any other establishment and the previous employer, or any other person who has custody of
the documents shall produce them as required by the inspector.

y other establishment and the previous employer, or any other person who has custody of
the documents shall produce them as required by the inspector.

(5) Where it becomes necessary for an inspector to visit the premises declared by a competent
authority to be a security area or the admission to which is restricted, the inspector shall not
enter the premises or area without obtaining prior permission from the officer in charge of the
premises. (6) Where an establishment is liquidated or wound up or ceases to operate,
(a) records in relation to the names of the workers,
(b) the workers' Social Security Numbers and salaries as defined in this Act, and
(c) deductions for Social Security contributions shall be deposited at the Registrar-General's
Department by the employer and the Trust shall be notified by the employer within seven days. (7) In this section, an inspector includes a compliance officer or other officers appointed by the
Trust to perform the function. 35

ithin seven days. (7) In this section, an inspector includes a compliance officer or other officers appointed by the
Trust to perform the function. 35

Section 92—Electronic recording and filing and transfer of documents
(1) The Trust has the option to record, file, maintain or transfer in electronic form, records of
members required under this Act or Regulations made under this Act and may receive
electronic transmitted information in respect of the scheme. (2) A system of electronic recording, maintenance, filing or transfer of documents shall provide
(a) the criterion for authorising persons to file the documents in an electronic form, and
(b) ensure the security and authentication of the documents filed or transferred. Section 93—Regulations
(1) The Minister, on the advice of the Authority and on the recommendation of the Board of
Trustees may, by legislative instrument, make Regulations for the purpose of carrying out the
provisions and principles of this Part. (2) Despite the Statutory Instruments Act, 1959 (No 52) the penalty for the contravention of
Regulations shall be a fine of not more than two thousand, five hundred penalty units. Section 94—Transitional provisions
(1) On the commencement of this Act, the following provisions shall apply
(a) each person to whom the Social Security Act 1991 (P.N.D.C.L.

provisions
(1) On the commencement of this Act, the following provisions shall apply
(a) each person to whom the Social Security Act 1991 (P.N.D.C.L.

247) applied immediately
before the commencement of this Act shall be credited for the number of months that person
has already contributed to the social security scheme;
(b) where within five years after the commencement of this Act, a member retires on attaining
the age of fifty-five years and has contributed to the scheme for a period of less than twenty
years that member is entitled to a reduced pension.[As substituted by the National Pensions
(Amendment) Act, 2014 Act 883 s.9]
(c) where a member fails to contribute for the minimum period of twenty years, that member
shall be paid the amount standing to the members credit with interest calculated at the
prevailing treasury bill rate. (d) accrued or past service or past credits earned by every contributor to whom the new scheme
applies in respect of the 25% lump sum benefit shall have the lump sum determined by a
formula agreed between the Pension Reform Implementation Committee and the Trust based
on actuarial assessment. (2) The rights, assets and liabilities accrued in respect of the properties vested in the Trust
established under the Social Security Act 1991 (P.N.D.C.L.

The rights, assets and liabilities accrued in respect of the properties vested in the Trust
established under the Social Security Act 1991 (P.N.D.C.L.

247) immediately before the
commencement of this Act and the persons employed by the Trust are transferred to the Social
Security and National Insurance Trust established under this Act and accordingly proceedings
taken by or against the former Trust may be continued by or against the Trust. (3) A contract subsisting between the former Trust established under the Social Security Act,
1991 (P.N.D.C.L. 247) and another person and in effect immediately before the
commencement of this Act shall subsist between the Trust established under this Act and that
other person
36

rson and in effect immediately before the
commencement of this Act shall subsist between the Trust established under this Act and that
other person
36

(4) The Board of Directors of the Trust existing immediately before the commencement of this
Act shall continue in office until a new Board of Trustees is appointed. PART THREE—OCCUPATIONAL PENSION SCHEMES, PROVIDENT FUND AND
PERSONAL PENSION SCHEMES AND MANAGEMENT OF THE SCHEMES
Occupational pension schemes
Section 95—Occupational pension scheme
For the purposes of this Part "occupational pension scheme" means a pension scheme that is
work-based, established under a trust which provides benefits based on a defined contribution
formula in the form of a lump sum
(a) payable on termination of service, death or retirement, or in respect of persons covered
under section 58 of this Act; and
(b) payable to or in respect of other persons specified under the second tier of the Scheme as
provided for under section 1 of this Act. Section 96—Mandatory contributions
(1) Subject to section 3 (1) and (2) an employer of an establishment shall, remit a mandatory
contribution of five per centum to approved trustees of occupational pension schemes, out of
the total contribution of eighteen and a half per centum made on behalf of the worker.

um to approved trustees of occupational pension schemes, out of
the total contribution of eighteen and a half per centum made on behalf of the worker.

(2) The contribution shall be remitted by the employer within fourteen days from the end of
each month. (3) The minimum contribution shall be five per centum of the approved monthly equivalent of
the national daily minimum wage. (4) Where an employer deducts contributions from the salary of a worker, the contributions
shall be held by the employer in trust until remitted to the trustees of the occupational pension
scheme. Section 97—Existing schemes
(1) The existence of a private or company pension provident fund, superannuation scheme or
gratuity scheme in respect of workers to whom this Act applies shall not exempt the employer
or the worker from the application of this Act and an employer is responsible for deducting
contributions from the remuneration of workers and paying them along with the employer's
own contributions to the Fund at the rates laid down in this Act.

ributions from the remuneration of workers and paying them along with the employer's
own contributions to the Fund at the rates laid down in this Act.

(2) Despite any other provision, an employer may
(a) amend written provisions of an existing scheme with the prior approval of the governing
body of the existing scheme or with the consent of the Board of the Authority; or
(b) adjust the benefits that may be derived from the scheme to enable the payment of
contributions to be effected under this Act. Section 98—Vesting
37

b) adjust the benefits that may be derived from the scheme to enable the payment of
contributions to be effected under this Act. Section 98—Vesting
37

(1) A contribution in respect of a member of a scheme vests in the member as accrued benefits
as soon as it is paid to the approved trustees of the scheme. (2) Income or profits derived from the investment of the accrued benefits of a member of a
scheme by or on behalf of the approved trustee of the scheme shall, vest in the member as
accrued benefits when received by that trustee after taking into account any loss arising from
the investment. Section 99—Preservation of accrued benefits derived from contributions
For the purpose of preserving accrued benefits in a scheme
(a) a trustee of a scheme shall not pay or dispose of any part of accrued benefits to a scheme
member or another person except in accordance with the provisions of this Act; and
(b) an employee or self-employed person shall not have a right or entitlement to accrued
benefits except in accordance with this Act. Section 100—Portability of accrued benefits
(1) A member of an employer sponsored scheme who ceases to be an employee shall, elect to
have the member's accrued benefits transferred to another scheme in accordance with the
regulations of the scheme.

s to be an employee shall, elect to
have the member's accrued benefits transferred to another scheme in accordance with the
regulations of the scheme.

(2) Subsection (1) does not apply if a member exercises an option to have the accrued benefit
of the member transferred to another scheme in accordance with the regulations of the
scheme.[As substituted by the National Pensions (Amendment) Act, 2014 Act 883 s.10]
(3) The accrued benefits of a member of the scheme may be transferred
(a) to another registered scheme to which the member is eligible to belong, or
(b) to another account within the same scheme, if permitted or required by regulations of that
scheme. (4) Where the accrued benefits of a member of a scheme are to be transferred, the approved
trustees of the respective schemes shall comply with requirements with respect to the transfer
of the benefits. (5) An employer shall comply with requirements or regulations with respect to the transfer of
benefits if a member of a scheme whose accrued benefits are to be transferred under this section
ceases to be an employee. (6) The regulations required for the management of a scheme may include
(a) notices to be given, and
(b) procedure to be followed, in connection with the transfer of accrued benefits.

the management of a scheme may include
(a) notices to be given, and
(b) procedure to be followed, in connection with the transfer of accrued benefits.

Section 101—Qualifying conditions for withdrawal of accrued benefits
(1) Under the second tier, a member of the scheme who has attained retirement age is entitled
to the entire accrued benefits in the scheme in a lump sum. 38

der the second tier, a member of the scheme who has attained retirement age is entitled
to the entire accrued benefits in the scheme in a lump sum. 38

(2) 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. (3) A person who is not a citizen of Ghana who does not satisfy the qualifying conditions for a
benefit of a scheme but desires to emigrate permanently from this country may be entitled to
the entire accrued benefits in the scheme in a lump sum. (4) A member of the scheme who
(a) is retired on the decision of a properly constituted medical board, 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; or
(b) is retired due to total or permanent disability either of mind or body; or
(c) 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.

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.

(5) On the death of a member of the scheme, the approved trustee of the scheme shall pay the
whole of the member's accrued benefits as a lump sum
(a) to the member's nominated beneficiaries, or
(b) if there are no nominated beneficiaries, to a person specified in the rules of the scheme. Section 102—Protection of accrued benefits
(1) The accrued benefits of a member in an occupational pension scheme shall not be attached
in execution of a judgment debt or be used as a charge, pledge, lien, or be transferred, assigned
or alienated by or on behalf of the member. (2) A disposition that is contrary to subsection (1) is void. Section 103—Assignment of benefits
(1) A scheme shall have rules to prevent the assignment of benefit. (2) Despite subsection (1) a scheme may allow a member to use that member's benefit to secure
a mortgage for the acquisition of a primary residence. Section 104—Exemptions from tax
(1) An employer or employee shall not pay income tax in respect of contributions on a
mandatory occupational pension scheme. (2) Benefits received under the scheme are not taxable.

all not pay income tax in respect of contributions on a
mandatory occupational pension scheme. (2) Benefits received under the scheme are not taxable.

(3) Investment income including capital gains from the investment of scheme funds shall for
the purposes of income tax be treated as deductible income. (4) The occupational scheme is a scheme to ascertain the chargeable income of a person to
make the appropriate deductions in respect of income tax. 39

(4) The occupational scheme is a scheme to ascertain the chargeable income of a person to
make the appropriate deductions in respect of income tax. 39

Section 105—Records in respect of contributions
(1) An employer shall maintain up-to-date records of direct payment arrangement. (2) The record shall
(a) show the rates and due dates of contributions payable under the direct payment arrangement,
and
(b) satisfy prescribed requirements. (3) The employer shall, send a copy of that record to the trustees of the scheme within the
prescribed period after the preparation of an up-to-date record. (4) Where an employer indicates in the records that a contribution under the direct payment
arrangement has not been paid on or before the due date, the trustees of the scheme shall give
notice to the Board and the worker of that fact within fourteen days. (5) The trustees of the scheme shall send a member a statement setting out the amounts and
dates of the payment made under the direct payment arrangement before the end of the
prescribed period. (6) An employer who fails to comply with subsections (1), (2) or (3) commits an offence and
is liable on summary conviction to a fine of two hundred and fifty penalty units.

ls to comply with subsections (1), (2) or (3) commits an offence and
is liable on summary conviction to a fine of two hundred and fifty penalty units.

Provident fund and personal pension schemes
Section 106—Provident fund and personal pension scheme
For the purpose of this Act
(a) "provident fund scheme" means 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 based
on a defined contribution formula
(i) to provide for the payment of lump sum benefits to the members of the scheme when they
reach the retirement age, or any other prescribed event occurs in relation to them; or
(ii) in the case of members who die before reaching that age or before the occurrence of such
an event, provides for the payment of those benefits to the personal representatives or
beneficiaries of the estates of those members. (b) "personal pension scheme" means any pension scheme to which the contributor contributes
personally to provide benefits based on a defined contribution formula in the form of pensions
or otherwise, payable on death or retirement to or in respect of persons covered under section
107 of this Act or their beneficiaries.

orm of pensions
or otherwise, payable on death or retirement to or in respect of persons covered under section
107 of this Act or their beneficiaries.

Section 107—Application
(1) A personal pension scheme applies to individuals
(a) who want to make voluntary contributions to enhance their pension benefits outside the
mandatory schemes and any provident fund scheme, and
40

als
(a) who want to make voluntary contributions to enhance their pension benefits outside the
mandatory schemes and any provident fund scheme, and
40

(b) in the informal sector who are not covered by any retirement or pension scheme under the
mandatory part of the three-tier pension scheme. (2) For persons under subsection (1) (b) a portion of their contributions may be accessed before
retirement in accordance with the governing rules of the scheme. Section 108—Voluntary contributions
(1) An employer may arrange for a worker to join and pay contributions to a provident fund or
personal pension scheme where the worker
(a) is at least fifteen years of age. [As substituted by the National Pensions (Amendment) Act,
2014 Act 883 s.11]
(b) is more than the statutory retirement age, or
(c) is exempted under sections 31 and 60 of this Act. (2) The employer is not obliged to pay contributions of a worker under subsection (1) to the
scheme. (3) Contributions made and returns earned from investment of the contribution shall, be
credited to the account of the contributor subject to any deduction of fees. (4) Where an employer contributes on behalf of a worker the contribution does not vest in the
worker until at the end of the vesting period.

of fees. (4) Where an employer contributes on behalf of a worker the contribution does not vest in the
worker until at the end of the vesting period.

(5) Subject to subsection (4), an employer's contributions to a provident fund on behalf of a
worker is for that worker. (6) Despite subsection (4) in the event of severance by the employer of the employment
relationship with the worker, or in the event of liquidation of the employer, an employer's
contributions for its worker shall vest in the worker even if the vesting period has not expired. (7) A worker may forfeit part or the total amount of the employer's contributions if the worker
leaves the employment of the employer before the end of the vesting period. (8) On the death of a worker before or after the expiry of the vesting period, any accrued benefit
of the worker shall devolve on the worker's nominated beneficiary and in the absence of a
nominated beneficiary in accordance with any applicable law.

of the worker shall devolve on the worker's nominated beneficiary and in the absence of a
nominated beneficiary in accordance with any applicable law.

Section 109—Self-employed persons
(1) A self-employed person may join and pay contributions to a personal pension scheme if
that person is of an age that is not more than the statutory retirement age or is at least fifteen
years of age.[As substituted by the National Pensions (Amendment) Act, 2014 Act 883 s.12]
(2) Contributions by self-employed persons in the informal sector who are not covered under
the mandatory scheme shall be credited to two separate individual sub-accounts
(a) the personal savings account, and
(b) the retirement account. 41

er
the mandatory scheme shall be credited to two separate individual sub-accounts
(a) the personal savings account, and
(b) the retirement account. 41

(3) The proportions to be credited to each account shall be prescribed in the governing rules of
the scheme. (4) A contributor may withdraw part of the contributor's personal savings account in
accordance with this Act and the governing rules of the scheme. (5) The proceeds of the retirement account shall only be paid on the retirement of the
contributor as monthly or quarterly pensions. (6) The provisions of this Act on accrued benefits and the governing rules of the scheme which
do not conflict with this Act shall apply to accrued benefits derived from voluntary
contributions paid to a scheme under the provident fund and personal pension scheme. Section 110—Qualifying conditions for withdrawal of accrued benefits
(1) A member who has attained the retirement age is entitled to the entire accrued benefits in
the scheme in a lump sum.

ithdrawal of accrued benefits
(1) A member who has attained the retirement age is entitled to the entire accrued benefits in
the scheme in a lump sum.

(2) A member who has not attained the retirement age may withdraw all or part of the member's
accrued benefits from a scheme
(a) after ten years from the date of first contribution in the case of the provident fund or personal
pension scheme for contributors in the formal sector,
(b) after five years from the date of first contribution in the case of personal pension scheme
for contributors in the informal sector, or
(c) 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. (3) The beneficiaries of the estate of a deceased contributor may withdraw the accrued benefits
of the deceased from the scheme.

or mental disability. (3) The beneficiaries of the estate of a deceased contributor may withdraw the accrued benefits
of the deceased from the scheme.

Section 111—Retirement benefits
A contributor who is not covered under a mandatory pension scheme or any other pension
scheme is entitled to
(a) use a percentage of accrued benefits, prescribed by the Board of the Authority to purchase
an annuity for life payable monthly or quarterly from a life insurance company licensed by the
National Insurance Commission, and
(b) a lump sum payment from the balance standing to the credit of the contributor's accrued
benefits or personal savings account. Section 112—Tax reliefs
(1) Subject to this Act, contributions made by an employer to a provident fund scheme on
behalf of a contributor shall be treated as part of the deductible income for that employer for a
tax year for the purpose of income tax. (2) Contributions not exceeding sixteen and one half per centum of a contributor's monthly
income, made by either a contributor or the contributor's employer or both shall, be treated as
42

and one half per centum of a contributor's monthly
income, made by either a contributor or the contributor's employer or both shall, be treated as
42

deductible income, for the purpose of income tax for the contributor and the contributor's
employer to the extent of their respective contributions. (3) Persons in the informal sector who are not covered by the mandatory first tier basic national
social security scheme and second tier occupational pension scheme, shall have thirty-five per
centum of their declared income treated as deductible income for the contributor for the
purposes of income tax. (4) Investment income including capital gains from the investment of scheme Funds shall for
the purposes of income tax, be treated as deductible income. (5) A withdrawal of all or part of a contributor's accrued benefits under a provident fund or
personal pension scheme
(a) on or after retirement shall be tax exempt;
(b) shall be subject to the appropriate income tax for contributors in the formal sector before
ten years of contributions and before retirement;
(c) shall be subject to the appropriate income tax for contributors in the informal sector before
five years of contributions and before retirement.

;
(c) shall be subject to the appropriate income tax for contributors in the informal sector before
five years of contributions and before retirement.

(6) A withdrawal from a scheme at any time after certification by a medical board that the
contributor is incapable of normal gainful employment due to a permanent physical or mental
disability is tax exempt. (7) A withdrawal from a provident fund or personal pension scheme at any time by the
beneficiaries of the estate of a deceased contributor is tax exempt. Section 113—Creation of encumbrance in respect of contribution
(1) A contributor may pledge or create a charge in respect of a part or all of the contributor's
accrued benefits. (2) A beneficiary who enforces a pledge or charge created by a contributor is liable for any tax
applicable to withdrawals under a scheme. Section 114—Assignment of benefits
(1) A scheme shall have rules that prevent the assignment of benefit. (2) Despite subsection (1) a scheme may allow a member to use that member's benefit to secure
a mortgage for the acquisition of a primary residence but a member is not liable to pay tax on
any withdrawal under this section.

's benefit to secure
a mortgage for the acquisition of a primary residence but a member is not liable to pay tax on
any withdrawal under this section.

Section 115—Duty of employer in respect of personal pension scheme
Despite the provisions of any governing rules or an agreement, an employer shall
(a) provide the 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 to the approved trustee of
the scheme within fourteen days after the end of the month of deduction; and
43

pension scheme and remit the contributions to the approved trustee of
the scheme within fourteen days after the end of the month of deduction; and
43

(c) not mingle payroll deductions with the employer's own funds and where an employer
deducts contributions from the salary of a worker the contributions shall be held by the
employer in trust until it is remitted to the appropriate approved trustee. Section 116—Monitoring of provident fund contributions
(1) An employer shall ensure that there is an up-to-date record of direct payment arrangement. (2) The record shall
(a) show the rates and due dates of contributions payable under the direct payment arrangement,
and
(b) satisfy prescribed requirements. (3) The employer shall send a copy of that record to the trustees of a scheme, within the
prescribed period after the preparation of an up to-date record. (4) The trustees of the scheme shall, give notice where any contribution shown by the record
to be payable under the direct payment arrangement has not been paid on or before its due date
except as provided. (5) The notice shall be given by the trustees to the Board of the Authority and the employees
within the prescribed period.

e date
except as provided. (5) The notice shall be given by the trustees to the Board of the Authority and the employees
within the prescribed period.

(6) The trustees of the scheme shall before the end of the prescribed intervals send the member
a statement setting out the amounts and dates of the payments made under the direct payment
arrangement during a prescribed period. Section 117—Life insurers carrying on pension and provident fund business
A life insurer who carries on personal pension and provident fund business shall
(a) maintain a separate and distinct Fund known as the Pension Fund representing the liabilities
of that insurer in respect of pension and provident fund business;
(b) maintain a separate and distinct account related to the income and expenditure of that
insurer in respect of its pension and provident fund business; and
(c) designate which of the assets of the insurer are to be regarded as assets of the Pensions Fund
to be clearly shown in the balance sheet or other accounts of the insurer as assets of the Pensions
Fund.

o be regarded as assets of the Pensions Fund
to be clearly shown in the balance sheet or other accounts of the insurer as assets of the Pensions
Fund.

Section 118—Winding-up
(1) In the event of a winding up of an employer sponsored provident fund scheme,
(a) contributions made by the employer on behalf of a contributor before the vesting period
shall not be available to a liquidator of the employer; and
(b) unpaid contributions of the employer and payroll deductions made from the contributor's
salary which have not been remitted to a trustee at the time of liquidation shall have priority
over any other debt. (2) Where a scheme is being liquidated
44

hich have not been remitted to a trustee at the time of liquidation shall have priority
over any other debt. (2) Where a scheme is being liquidated
44

(a) the trustee shall not receive any contributions from the date of the commencement of the
winding-up under a scheme managed by the trustee;
(b) any schemes operated by the trustee may be merged with a scheme operated by another
trustee with the approval of the contributor and on the directions of the Board; and
(c) the merger shall be conducted to the other trustee by the transfer of the assets and liabilities
of the scheme by the trustee to that trustee. (3) Where the registration of a custodian is being withdrawn, the trustee of the scheme to which
the trust relates shall appoint another custodian approved by the Board with the approval of the
contributor.

rawn, the trustee of the scheme to which
the trust relates shall appoint another custodian approved by the Board with the approval of the
contributor.

Trustees
Section 119—Independent director and independent trustee
(1) A director is not an independent director if the director
(a) is a worker, partner or associate of a person who has applied to become a trustee of the
applicant, or of an associate of the applicant; or
(b) is a director of an associate of the applicant; or
(c) holds shares of the applicant or of any associate of the applicant; or
(d) fails to satisfy the Board that the director has no past or present association financial or
otherwise with
(i) the applicant other than as a director or professional adviser; or. (ii) a controller of the applicant; or
(iii) an associate of the applicant or of any other controller;
that could affect the impartiality of the director's independent judgement; or
(e) is a controller otherwise than by virtue of being a director, close relative, partner or
employee of the applicant or of an associate of the applicant; or
(f) is an auditor or actuary of any occupational pension or provident fund scheme administered
by the applicant.

of an associate of the applicant; or
(f) is an auditor or actuary of any occupational pension or provident fund scheme administered
by the applicant.

(2) A trustee is not an independent trustee if the trustee
(a) is a controller, close relative, partner or employee of the participating employer or of an
associate of that employer; or
(b) where the participating employer is a company, holds shares of the company or of an
associate of that company; or
(c) fails to satisfy the Board that the person has the skill, knowledge, experience and
qualifications that are, in the opinion of the Board, necessary for that person to administer
occupational fund schemes; or
45

owledge, experience and
qualifications that are, in the opinion of the Board, necessary for that person to administer
occupational fund schemes; or
45

(d) fails to satisfy the Board that the applicant has no past or present association financial or
otherwise with
(i) the participating employer; or
(ii) a controller of that employer; or
(iii) an associate of that employer or of any a[sic] controller; that can affect the impartiality of
the trustee's independent judgement; and
(e) is an auditor or actuary of the scheme.

or of any a[sic] controller; that can affect the impartiality of
the trustee's independent judgement; and
(e) is an auditor or actuary of the scheme.

Section 120—Trustees
At the commencement of this Act, occupational pension schemes, provident fund schemes,
personal pension schemes and other privately-managed pension schemes shall only be
managed by trustees approved and licensed by the Board.[As substituted by the National
Pensions (Amendment) Act, 2014 Act 883 s.13]
Section 121—Functions of a trustee
A trustee licensed under this Act shall, in addition to other duties imposed by a trust deed,
perform the following functions:
(a) secure scheme registration;
(b) appoint pension fund managers, custodians and other service providers and ensure their
compliance with regulatory requirements or guidelines;
(c) maintain investment policy statements and internal control procedures that may be
prescribed by the Board;
(d) ensure that the investment of funds of the scheme is diversified to minimise investment
risk;
(e) act as a provident trustee in financing relationship with its members;
(f) discharge the duties of a trustee;
(g) process transfer and payment requests as contained in the trust;
(h) keep proper accounting records and a members' register;
(i) prepare and lodge annual audited financial statements, scheme and investment reports and
other relevant records that the Board may require; and
(j) perform other functions as may be directed by the Board.

scheme and investment reports and
other relevant records that the Board may require; and
(j) perform other functions as may be directed by the Board.

Section 122—Application for a licence
(1) A person shall not be appointed as a trustee unless that person is licensed in accordance
with this Act. (2) A person seeking to be appointed as a trustee shall apply to the Board. (3) The application shall
46

rson is licensed in accordance
with this Act. (2) A person seeking to be appointed as a trustee shall apply to the Board. (3) The application shall
46

(a) be in a form prescribed by the Board,
(b) contain information and documents prepared in a manner prescribed by the Board, and
(c) be accompanied with the prescribed fee. (4) A person who fails to obtain a licence and yet acts as a trustee commits an offence and is
liable on summary conviction to a fine of two thousand penalty units or to a term of
imprisonment not exceeding two years or to both. Section 123—Conditions for licence as a trustee
(1) A person does not qualify to be appointed a trustee unless that person
(a) satisfies the minimum capital and net asset value requirement or a sum that may be
prescribed by the Board;
(b) has the requisite qualified management staff in the appropriate profession; and
(c) has obtained a licence from the Board to manage pension schemes. (2) A company is not eligible to apply for a licence unless
(a) it is a trust company with a registered company name including the word "trust" or
"trustee";
(b) its business is restricted to trust business; and
(c) at least one of the Company's directors is an independent director. (3) The Board shall prescribe the qualifications of independent directors for the purposes of
subsection 2 (c).

directors is an independent director. (3) The Board shall prescribe the qualifications of independent directors for the purposes of
subsection 2 (c).

(4) An individual person is not eligible to make an application under this section if that
individual is
(a) found by a court to be of unsound mind and incapable to manage the person's personal
affairs; or
(b) an undischarged bankrupt or has entered into a composition with creditors without paying
the creditors in full. Section 124—Consideration of application
(1) The Board shall consider an application for appointment as a trustee and take final decision
within ninety days after the date of the submission of the application. (2) The Board may, require an applicant by notice, to provide additional information and
relevant documents that may be reasonably necessary to enable it determine the application. (3) Where a requirement is not complied with within the time specified in the notice, the Board
may reject the application. Section 125—Approval of application
(1) The Board may approve an application for appointment as trustee if the Board is satisfied
that the applicant
47

ection 125—Approval of application
(1) The Board may approve an application for appointment as trustee if the Board is satisfied
that the applicant
47

(a) is capable of performing the functions that are required of an approved trustee; and
(b) has entered into an undertaking with the Board that the applicant shall not, in relation to a
registered scheme of which the applicant is the approved trustee, refuse an application for
membership of the scheme made by or on behalf of a person who is
(i) not precluded by a provision of this Act from being a member of the scheme, and
(ii) required under this Act to be a member of a registered scheme; and
(c) shall comply with the Regulations prescribed by the Board.

the scheme, and
(ii) required under this Act to be a member of a registered scheme; and
(c) shall comply with the Regulations prescribed by the Board.

(2) Regulations referred to in subsection (1) (c) may include the following:
(a) qualifications that an applicant must have;
(b) financial resources that an applicant must have including capital adequacy;
(c) in the case of an application by a company,
(i) the membership of the company,
(ii) the objects of the company as set out in its constitution, and
(iii) the suitability of the company's regulation and experience in administering pension fund
schemes;
(d) in the case of an application by an individual, the applicant must
(i) have professional knowledge and experience to administer a pension fund; and
(ii) execute a performance guarantee. Section 126—Power to impose conditions
The Board may
(a) impose appropriate conditions with respect to the conduct of the applicant's business; and
(b) specify conditions in a certificate issued to the trustee when making the appointment of a
trustee. Section 127—Representation to the Board
(1) The Board shall offer an applicant the opportunity to make representation orally or in
writing before an application for appointment as trustee is rejected.

ard shall offer an applicant the opportunity to make representation orally or in
writing before an application for appointment as trustee is rejected.

(2) Where the Board refuses an application, the Board shall give in a written notice reasons for
the refusal to the applicant. (3) An applicant dissatisfied with the decision of the Board may refer the matter for settlement
through an appropriate dispute resolution mechanism. Section 128—Waiver of conditions
The Board may waive a condition where compliance with the condition in a particular case is
not reasonably practicable. 48

on 128—Waiver of conditions
The Board may waive a condition where compliance with the condition in a particular case is
not reasonably practicable. 48

Section 129—Application for registration of occupational pension scheme or provident fund
scheme as employer sponsored scheme or master trust scheme
(1) An application for the registration of an occupational pension or provident fund scheme as
an employer sponsored scheme may be made to the Board only by
(a) a company which has been approved as a trustee or has applied for approval as a trustee;
(b) two or more individuals who are approved trustees, or have applied for approval and at least
one is an independent trustee; or
(c) a company and one or more individuals. (2) An application for the registration of an occupational pension or provident fund scheme as
a master trust scheme shall be made to the Board by an approved trustee that is a company or
by a company that has applied for and been granted a licence under this Act. (3) If an application is made by two or more approved trustees who are individuals, at least one
of them must be an independent trustee. (4) The Board may by regulations prescribe the qualifications of independent trustees for the
purpose of this subsection.

t be an independent trustee. (4) The Board may by regulations prescribe the qualifications of independent trustees for the
purpose of this subsection.

Section 130—Contents of application
(1) An application under section 129 shall
(a) specify particulars of the scheme to be registered,
(b) contain other information prescribed in guidelines issued under this Act, and
(c) be accompanied with
(i) a copy of the proposed rules that govern the scheme and other documents that may be
prescribed in guidelines issued under this Act, and
(ii) an application fee of an amount to be determined. (2) The Board may, require an applicant by notice to provide additional information and
documents reasonably necessary to enable it evaluate the application. (3) The Board may reject an application if an applicant does not provide information required
by the Board within a specified time. Section 131—Consideration of application
(1) The Board shall consider an application for registration of a scheme and take a final decision
within ninety days after receipt of the application. (2) The Board may register a scheme if it is satisfied that the scheme complies or will comply
with the requirements and standards prescribed by the regulations in accordance with this Act.

it is satisfied that the scheme complies or will comply
with the requirements and standards prescribed by the regulations in accordance with this Act.

(3) The Board shall require the applicant to enter into an undertaking with respect to the
administration of the scheme as a condition for registering an occupational pension or provident
fund scheme including in the case of an application to register a scheme
49

scheme as a condition for registering an occupational pension or provident
fund scheme including in the case of an application to register a scheme
49

(a) as an employer sponsored scheme, an undertaking to approve an application for
membership of the scheme made by or on behalf of a relevant employee of the participating
employer; and
(b) as a master trust scheme, an undertaking to approve an application for membership of the
scheme made by or on behalf of any
(i) relevant employee in the formal sector, or
(ii) self-employed person who is fifteen years of age or above and below retirement age and
engaged in the informal sector. (4) Without limiting subsection (3), the Board may impose other conditions for the
administration of an occupational pension scheme or provident fund scheme. Section 132—Refusal of application
(1) The Board shall not refuse an application without giving the applicant an opportunity to
make representations either orally, in writing, or both. (2) Where the Board refuses an application, the Board shall give reasons in a written notice to
the applicant.

ons either orally, in writing, or both. (2) Where the Board refuses an application, the Board shall give reasons in a written notice to
the applicant.

Section 133—Certificate of registration
(1) On registration of an occupational pension or provident fund scheme, the Board shall issue
a certificate of registration to the approved trustee of the scheme and, if there are any conditions
with respect to the administration of the scheme, the Board shall specify the conditions in the
certificate or in a document accompanying the certificate. (2) The certificate shall specify whether the scheme is an employer sponsored scheme or a
master trust scheme. Section 134—Waiver of condition
The Board may waive an applicant's compliance with a condition imposed
(a) in a particular case, and
(b) where the person satisfies the Board that compliance is not, or has not been reasonably
practicable in the circumstances. Section 135—Application for registration as personal pension scheme
(1) An application for the registration of a scheme as a personal pension scheme shall be made
to the Board by
(a) a company that is a licensed trustee or has applied for approval to the Board;
(b) two or more individuals who are licensed trustees, or have applied for licence and at least
one is an independent trustee; or
(c) such a company and one or more individuals.

who are licensed trustees, or have applied for licence and at least
one is an independent trustee; or
(c) such a company and one or more individuals.

(2) Regulations made under this section may prescribe the qualifications of independent
trustees. 50

(2) Regulations made under this section may prescribe the qualifications of independent
trustees. 50

Section 136—Contents of application
(1) An application for registration of a scheme as a personal pension scheme shall
(a) specify particulars of the scheme to be registered and contain other information, if any, as
prescribed in guidelines issued under this Act; and
(b) be accompanied with
(i) a copy of the proposed rules that are to govern the scheme and other documents, as
prescribed in guidelines issued under this Act; and
(ii) an application fee of an amount prescribed by Regulations. (2) The Board may, require an applicant by notice to provide additional information and
documents reasonably necessary to enable it determine the application. (3) If a requirement is not complied with within a reasonable time specified in the notice, the
Board may reject the application. Section 137—Consideration of application
(1) The Board shall consider the application for registration of a personal pension scheme
within thirty days and take a final decision within ninety days after receipt of the application.

cation for registration of a personal pension scheme
within thirty days and take a final decision within ninety days after receipt of the application.

(2) The Board may register a scheme as a personal pension scheme if the Board is satisfied that
the scheme
(a) complies with, or will if registered comply with, the requirements and standards that are
prescribed by the regulations, and
(b) will be governed by the laws of this country. (3) The Board shall require the applicant
(a) to enter into an undertaking with respect to the administration of the scheme,
(b) not to refuse an application for membership of the scheme made by or on behalf of a
(i) relevant employee who is employed in the formal sector, or
(ii) self-employed person who is above fifteen years and below retirement age and engaged in
the informal sector as a condition for the registration of a personal pension scheme under this
section. (4) Without limiting subsection (3), on the registration of a personal pension scheme, the Board
may impose conditions as regards the administration or marketing of the scheme as it considers
appropriate. Section 138—Refusal of application
(1) The Board shall not refuse an application for registration of a personal pension scheme
without giving the applicant an opportunity to make oral or written representations.

fuse an application for registration of a personal pension scheme
without giving the applicant an opportunity to make oral or written representations.

(2) Where the Board refuses an application, the Board shall give reasons in a written notice for
the refusal to the applicant. 51

(2) Where the Board refuses an application, the Board shall give reasons in a written notice for
the refusal to the applicant. 51

Section 139—Certificate of registration
(1) On registering a scheme as a personal pension scheme, the Board shall
(a) publish a notice of the registration in the Gazette, and
(b) issue to the approved trustee of the scheme a certificate of registration and the conditions
for the administration or marketing of the scheme in the certificate or in a document
accompanying the certificate. (2) The certificate shall specify that the scheme is a personal pension scheme. Section 140—Power to impose, amend or waive conditions
(1) Where the Board decides that it is appropriate to impose or amend any conditions imposed
as regards the administration or marketing of a personal pension scheme, the Board shall give
to the licensed trustee
(a) notice of not less than thirty days of its decision and the reasons; and
(b) an opportunity to make written representations to the Board,
(2) The Board may waive an applicant's compliance with a condition imposed
(a) in a particular case, and
(b) where the person satisfies the Board that compliance is not, or has not been, reasonably
practicable in all the circumstances of that case.

e, and
(b) where the person satisfies the Board that compliance is not, or has not been, reasonably
practicable in all the circumstances of that case.

(3) The Board shall not impose or amend any conditions with respect to the marketing of a
registered scheme under this section unless the imposition or amendment, is within the ambit
of the guidelines. Section 141—Requirement for member-nominated trustees
(1) The trustees of an occupational pension scheme shall ensure that within a reasonable period
of the commencement date, arrangements are in place to provide for at least one-third of the
total number of trustees to be member-nominated trustees, and implement those arrangement. (2) Member-nominated trustees are trustees of an occupational pension scheme who are
(a) nominated as the result of a process in which the active members of the scheme are eligible
to participate, and
(b) selected by some or all of the members of the scheme. (3) The commencement date, in relation to a scheme, is the date upon which this section first
applies in relation to the scheme.

embers of the scheme. (3) The commencement date, in relation to a scheme, is the date upon which this section first
applies in relation to the scheme.

(4) The arrangements for the scheme may provide for a greater number of member-nominated
trustees than that required to satisfy the one-third minimum specified in subsection (1) only if
the employer has approved the greater number and shall provide
(a) for the nomination and selection process to take place within a reasonable period of any
requirement arising under the arrangements to appoint a member-nominated trustee;
52

selection process to take place within a reasonable period of any
requirement arising under the arrangements to appoint a member-nominated trustee;
52

(b) that where there is a vacancy because insufficient nominations are received, the nomination
and selection process shall be repeated at reasonable intervals until the vacancy is filled;
(c) that where the employer requires, a person who is not a member of the scheme must have
the employer's approval to qualify for selection as a member-nominated trustee; and
(d) that subject to paragraph (c) where the number of nominations received is equal to or less
than the number of appointments required, the nominees are considered to be selected. (e) that the removal of a member-nominated trustee requires the agreement of all the other
trustees. (5) The provisions in the arrangements of the scheme shall not exclude member-nominated
trustees from exercising functions exercisable by other trustees because they are member-
nominated trustees. (6) This section does not apply in relation to an occupational pension scheme if
(a) each member of the scheme is a trustee,
(b) every trustee of the scheme is a company, or
(c) the scheme is of a prescribed description.

scheme if
(a) each member of the scheme is a trustee,
(b) every trustee of the scheme is a company, or
(c) the scheme is of a prescribed description.

(7) In the case of an occupational pension scheme where the arrangements required under
subsection (1) are not in place, or being implemented, a trustee shall be liable on summary
conviction to a fine of two thousand penalty units or to a term of imprisonment of not more
than two years. Section 142—Requirement for member-nominated directors of corporate trustees
(1) Where a company is a trustee of an occupational pension scheme and each trustee of the
scheme is a company, the company shall ensure that within a reasonable period after the
commencement date, arrangements are in place which provide for at least one-third of the total
number of directors of the company to be member-nominated directors and implement those
arrangements. (2) Member-nominated directors are directors who are
(a) nominated as the result of a process which the active members of the occupational pension
scheme are eligible to participate in the activities of the company, and
(b) selected by some or all of the members of that scheme. (3) The commencement date, in relation to a company, is the date on which this section first
applies in relation to the company.

mbers of that scheme. (3) The commencement date, in relation to a company, is the date on which this section first
applies in relation to the company.

(4) The arrangements may provide for a greater number of member-nominated directors than
that required to satisfy the one-third minimum specified in subsection (1) only if the employer
has approved the greater number. (5) The arrangements shall provide
(a) for the nomination and selection place within a reasonable period of any requirement arising
under the arrangements to appoint a member-nominated director;
53

nomination and selection place within a reasonable period of any requirement arising
under the arrangements to appoint a member-nominated director;
53

(b) that where a vacancy is not filled because insufficient nominations are received, the
nomination and selection process shall be repeated at reasonable intervals until the vacancy is
filled;
(c) that where the employer requires, a person who is not a member of the scheme shall obtain
the employer's approval to qualify for selection as a member nominated director; and
(d) that subject to paragraph (c), where the number of nominations received is equal to or less
than the number of appointments required, the nominees shall be deemed to be selected. (6) The arrangements shall provide that the removal of a member nominated director requires
the agreement of all the other directors. (7) The provisions in the arrangements shall not exclude member nominated directors from
exercising the functions exercisable by other directors only because they are member-
nominated directors.

not exclude member nominated directors from
exercising the functions exercisable by other directors only because they are member-
nominated directors.

(8) Where the same company is a trustee of two or more occupational pension schemes, subject
to subsection (9), the
(a) schemes shall be treated as if they were a single scheme,
(b) members of each of the schemes shall be considered as members of that single scheme, and
(c) references to the employer shall be references to all the employers in relation to the schemes. (9) This section does not apply in relation to an occupational pension scheme if the scheme is
of a prescribed description. (10) In the case of a company which is a trustee of an occupational pension scheme, where the
arrangements required by subsection (1) are not in place or being implemented, the trustee of
the company is liable on summary conviction to a fine of not more than fifty penalty units for
each day that the offence continues or to a fine determined by the Board.

ble on summary conviction to a fine of not more than fifty penalty units for
each day that the offence continues or to a fine determined by the Board.

Section 143—Knowledge and understanding of individual trustees
(1) A person who is an individual trustee of an occupational pension scheme shall be conversant
with
(a) the trust deed and scheme rules,
(b) any statement of investment policy for the time being maintained under section 153 of this
Act, and
(c) any other document recording policy adopted by the trustees relating to the administration
of the scheme generally. in relation to each relevant scheme. (2) An individual to whom this section applies shall be knowledgeable in the law relating to
pensions and trusts, and principles related to
(i) the funding of occupational pension schemes,
(ii) investment of the assets of the schemes, and
54

o
pensions and trusts, and principles related to
(i) the funding of occupational pension schemes,
(ii) investment of the assets of the schemes, and
54

(iii) any other matters as may be prescribed. (3) The degree of knowledge and understanding required under subsection (1) is what is
appropriate for the purpose of enabling the individual to exercise the functions of a trustee of
any relevant scheme. Section 144—Knowledge and understanding of corporate trustees
(1) This section applies to a company that is a trustee of an occupational pension scheme. (2) A company to which this section applies shall, ensure that each individual who performs a
function of the company as trustee of the scheme is conversant with the following documents
relevant to the performance of that function:
(a) the trust deed and scheme rules;
(b) any statement of investment policy for the time being maintained under section 153 of this
Act; and
(c) any other document recording policy for the time being adopted by the trustees relating to
the administration of the scheme generally. in relation to each relevant scheme.

cording policy for the time being adopted by the trustees relating to
the administration of the scheme generally. in relation to each relevant scheme.

(4) A company to which this section applies shall ensure that an individual who performs a
function of the company as trustee of a relevant scheme has the requisite knowledge in the
(a) law relating to pensions and trusts,
(b) principles relating to
(i) the funding of occupational pension schemes,
(ii) investment of the assets of these schemes, and
(iii) any other matters as may be prescribed. (5) The degree of knowledge and understanding required under subsection (4) is what is
appropriate to enable the individual to perform the function. (6) References in this section to the performance by an individual of a function of a company
relates to acts done by the individual on behalf of the company which constitutes the
performance of the function by the company. Section 145—Fees of trustees
A trustee shall be paid a fee subject to the limits determined by the Board. Pension fund managers
Section 146— Pension fund managers, registration requirements
(1) At the commencement of this Act, pension funds shall be managed by pension fund
managers registered by the Board. (2) A person shall not practise as a pension fund manager unless that person has been registered
by the Board. 55

nd
managers registered by the Board. (2) A person shall not practise as a pension fund manager unless that person has been registered
by the Board. 55

Section 147—Functions of pension fund managers
A pension fund manager registered under this Act shall perform the following functions:
(a) advise the Trustee on the investment of pension funds and assets in accordance with the
provisions of this Act. (b) advise the Trustee on the investment of pension funds in different insestments[sic] to
minimise investment risks"[As substituted by the National Pensions (Amendment) Act, 2014
Act 883 s.14]
(c) maintain books of account on transactions related to pension funds invested;
(d) submit its activities to inspections in the discharge of duties of trustees;
(e) submit records and reports that the Board may require; and
(f) perform other functions that the Board may prescribe that are incidental to the performance
of its functions. Section 148—Requirements for registration as a pension fund manager
A person does not qualify to be registered as a pension funds manager for the purpose of this
Act unless that person
(a) is independent from the trustee and custodian,
(b) is a body corporate,
(c) is licensed by the Security and Exchange Commission as an investment adviser under the
Securities Industry Act 1993 (P.N.D.C.L.

a body corporate,
(c) is licensed by the Security and Exchange Commission as an investment adviser under the
Securities Industry Act 1993 (P.N.D.C.L.

333),
(d) satisfies the minimum capital requirement and net asset value or any sum that may be
determined by the Board, and
(e) has qualified management staff. Section 149—Application for registration
(1) A person who desires to operate as a pension fund manager of a scheme shall apply in
writing to the Board. (2) The application shall be in a form prescribed by the Board and be accompanied with the
prescribed fee. Section 150—Grant of application
(1) The Board shall register an applicant to operate as a pension funds manager within sixty
days after receipt of an application to operate as a pension fund manager upon satisfying itself
that the applicant has fulfilled the conditions including the payment of fees. (2) The Board may write to the applicant within thirty days after the receipt of the application
if not satisfied with the application and may request the applicant to rectify any errors in the
application or to satisfy any pre-condition for the registration within twenty-one days. 56

and may request the applicant to rectify any errors in the
application or to satisfy any pre-condition for the registration within twenty-one days. 56

(3) The Board may register the applicant subject to conditions or restrictions as it considers
appropriate and the Board may vary any condition or restriction in relation to the registration
by notice to the pension funds manager. (4) The Board shall register the applicant to operate as a pensions fund manager where the
applicant rectifies the error or satisfies the preconditions within the specified time. Section 151—Refusal to register
Where an application for registration is refused, the Board shall state the reasons for the refusal
in the notice to the applicant. Section 152—Dispute settlement
An applicant who is dissatisfied with the Board's refusal to register it to operate as a pension
fund manager may refer the matter for resolution through an appropriate dispute resolution
mechanism. Section 153—Investment policy
(1) A trustee shall have a statement of investment policy which shall be reviewed at intervals
and on occasions as may be determined by the Board. (2) A statement of investment policy, in relation to a trust scheme is a written statement of the
investment principles governing decisions about investments for the purpose of the scheme.

in relation to a trust scheme is a written statement of the
investment principles governing decisions about investments for the purpose of the scheme.

(3) The trustee shall comply with prescribed requirements, before preparing or revising a
statement of investment policy. (4) A statement of investment policy shall be in the prescribed form and include the
(a) investment objectives,
(b) policy as to the kind of securities and other assets that may be acquired,
(c) policy as to the balance between different kinds of securities and other assets,
(d) risk in implementing the investment policy, and
(e) return expected in implementing the investment policy. (5) Where in the case of a trust scheme, a statement of investment policy has not been prepared,
maintained, reviewed or revised or the trustee has not complied with the obligation imposed
on them under subsection (3), the trustee is liable to a penalty determined by the Board. Section 154—Fees of pension fund manager
A pension fund manager shall be paid the fee agreed with the trustee subject to the limits
determined by the Board through notices. Pension fund custodians
Section 155— Pension fund custodians
At the commencement of this Act, pension fund assets shall only be held by pension fund
custodians referred to as custodians registered by the Board. 57

the commencement of this Act, pension fund assets shall only be held by pension fund
custodians referred to as custodians registered by the Board. 57

Section 156—Functions of custodians
A pension fund custodian shall
(a) receive contributions remitted by the employer under this Act on behalf of the trustees;
(b) notify the trustee within forty-eight hours of the contributions from an employer;
(c) hold pension fund and assets in trust for members;
(d) settle transactions and undertake activities related to the administration of pension fund
investments including the collection of dividends and related activities;
(e) report to the Board on matters related to the assets being held on behalf of a trustee at
periodic intervals that the Board may determine;
(f) undertake statistical analysis on the investments and returns on investments with respect to
pension funds in their custody and provide data and information to the trustee and the Board;
(g) execute in favour of the trustee, relevant proxy for the purpose of voting in relation to the
investments; and
(h) perform other functions as may be directed by the Board.

the trustee, relevant proxy for the purpose of voting in relation to the
investments; and
(h) perform other functions as may be directed by the Board.

Section 157—Requirement for registration as custodian
A person does not qualify as a custodian for the purposes of this Act unless that person
(a) is a body corporate;
(b) is a bank, an insurance company or a non-bank financial institution;
(c) is a wholly owned subsidiary of a bank, an insurance company or a non-bank financial
institution;
(d) is licensed by the Securities and Exchange Commission as a custodian under the Securities
Industry Act, 1993 (P.N.D.C.L. 333);
(e) satisfies minimum capital requirement and net asset value or a sum determined by the
Board;
(f) is independent of the trustee and pension fund manager and all delegates of the trustee and
pension fund manager; and
(g) has qualified management staff. Section 158—Conditions for registration
An application for registration to act as a custodian shall not be approved by the Board unless
the custodian company
(a) issues a guarantee to the full sum and value of pension funds and assets held by it or to be
held by it;
(b) is a subsidiary of a qualified parent company who shall issue the guarantee;
58

value of pension funds and assets held by it or to be
held by it;
(b) is a subsidiary of a qualified parent company who shall issue the guarantee;
58

(c) undertakes to hold the pension fund assets to the exclusive order of the trustee on trust for
the members as instructed by the trustee;
(d) has never been a custodian of a fund which was mismanaged or has been in distress due to
a default, either fully or partially, of the applicant. Section 159—Application for registration
(1) A person who desires to act as a custodian of pension fund shall apply to the Board for
registration in a form determined by the Board. (2) The applicant shall pay the prescribed fee. (3) The Board shall register the applicant within sixty days after the receipt of an application
upon satisfying itself that the applicant has fulfilled the preconditions including the payment
of fee required. (4) Where the Board is not satisfied with the application, the Board may, request the applicant
to rectify errors in the application in writing within thirty days after the receipt of the
application or satisfy a pre-condition for the registration within twenty-one days. (5) The Board shall register or refuse the registration upon the rectification of the error or
satisfaction of the pre-conditions within the specified time.

e Board shall register or refuse the registration upon the rectification of the error or
satisfaction of the pre-conditions within the specified time.

(6) The Board may register an applicant subject to conditions or restrictions as it considers
appropriate. (7) The Board may vary a condition or restriction in relation to the registration at any time by
written notice to the custodian. (8) Where an application for a registration is refused, the Board shall state the reasons for the
refusal in a notice to the applicant. Section 160—Dispute settlement
An applicant who is dissatisfied with the Board's refusal to register it, may refer the matter for
settlement through an appropriate dispute resolution mechanism. Section 161—Fees of custodian
A custodian shall be paid a fee as agreed with the trustee and subject to the limits determined
by the Board. Section 162—Permitted expenditure from scheme funds
A trustee shall not charge any expenditure or make any deductions from the scheme fund other
than those prescribed by the Board or authorised under this Act. Section 163—Maximum administrative charges
The total fees, charges and expenses on the scheme fund shall not exceed a maximum limit
prescribed by the Board. Section 164—Revocation of licence or cancellation of registration
59

nses on the scheme fund shall not exceed a maximum limit
prescribed by the Board. Section 164—Revocation of licence or cancellation of registration
59

(1) The Board may revoke the licence or cancel the registration of a trustee, a pension fund
manager or custodian, if
(a) the Board discovers that a statement was made in connection with the application which the
applicant knew to be false or untrue,
(b) the trustee, pension fund manager or custodian is subject to insolvency proceedings or is
likely to be wound up or dissolved;
(c) the conduct of affairs of the trustee, pension fund manager or custodian does not conform
with the provisions of this Act or Regulations made under this Act;
(d) an event occurs which renders the trustee, pension fund manager or custodian ineligible to
manage the pension funds or take custody of the pension fund, or
(e) the trustee, pension fund manager or custodian is in breach of a condition attached to the
licence or registration. (2) The Board shall give the trustee, pension fund manager or custodian at least twenty-eight
days notice of its intention to revoke the licence or cancel the registration and shall consider
representations made to it in writing by the trustee, pension fund manager or custodian within
that period before revoking the licence or cancelling the registration.

made to it in writing by the trustee, pension fund manager or custodian within
that period before revoking the licence or cancelling the registration.

(3) The notice under subsection (2) shall be in a prescribed form and specify the reasons for
the revocation of the licence or cancellation of the registration. (4) The revocation of the licence of a trustee, or cancellation of the registration of a pension
fund manager or custodian does not limit the entitlements of beneficiaries under the scheme. (5) The Board shall, suspend the power of the respective board of the trustee, pension fund
manager or custodian over
(a) the pension fund and assets held or administered by the company; and
(b) appoint administrators with relevant qualifications to superintend the transfer of the assets
and funds held or administered by the company and exercise the powers of the board of trustees
where necessary in accordance with this Act,
in the revocation order. (6) The Board shall notify the public within seven days, through the publication in the Gazette,
the electronic and print media in circulation of the list of trustees, pension fund managers and
custodians whose licences or registration have been revoked or cancelled.

rint media in circulation of the list of trustees, pension fund managers and
custodians whose licences or registration have been revoked or cancelled.

Section 165—Publication of list of trustees, pension fund managers and custodians
(1) The Board shall, publish a list of trustees, pension fund managers and custodians licensed
or registered by it at the end of each calendar year. (2) The publication shall be in a manner that the Board considers appropriate. Section 166—Proper books of accounts and audit
60

f each calendar year. (2) The publication shall be in a manner that the Board considers appropriate. Section 166—Proper books of accounts and audit
60

(1) A trustee, pension fund manager or custodian licensed or registered under this Act shall
cause proper books of accounts and records to be kept in relation to the scheme in a form that
the Board may determine. (2) A trustee, pension fund manager or custodian shall, not later than four months after the end
of the year cause its accounts to be audited by qualified external auditors and prepare an audit
report, which shall include a statement on the extent of compliance with the
(a) provisions of this Act and Regulations made under it,
(b) trustee's duties under the trust deed and under this Act, and
(c) the scheme's investment objective and other requirements under this Act. (3) Without limiting the scope of subsection (2), the Board may order technical audits of the
facilities, equipment, resources and accounts of a trustee, pension fund manager or custodian
to be conducted as the Board considers appropriate. Section 167—Annual reports
(1) A trustee, pension fund manager or custodian shall submit an annual report to the Board
within four months after the end of each financial year to give details of its activities in relation
to the scheme in the preceding year.

o the Board
within four months after the end of each financial year to give details of its activities in relation
to the scheme in the preceding year.

(2) A report under subsection (1) shall include the audit reports referred to in section 166 (2)
and any other reports that the Board may prescribe.

(2) A report under subsection (1) shall include the audit reports referred to in section 166 (2)
and any other reports that the Board may prescribe.

Section 168—Reporting obligations of auditors, trustees, pension fund managers and
custodians
(1) An external auditor appointed by a trustee, pension fund manager or custodian shall, in the
discharge of duties report to the Board any
(a) extreme situation such as evidence of imminent financial collapse of the trustee, pension
fund manager or custodian;
(b) evidence of an event or occurrence which has led or is likely to lead to material diminishing
of the net assets of the trustee, pension fund manager or custodian;
(c) evidence of a significant weakness in the accounting and other records or the internal control
systems of the trustee, pension fund manager or the custodian;
(d) report or statement on financial matters made by the management of the trustee, pension
fund manager or custodian which is misleading;
(e) fraud or other misappropriation which the auditor believes has been committed by the
directors or the management of the trustee or pension fund manger[sic] or custodian or has
evidence of an attempt by the directors or senior management to commit fraud or
misappropriation; or
(f) event or occurrence which affects or is likely to affect the auditor's confidence in the
competence of the directors or the senior management to conduct the business of a trustee,
pension fund manager or custodian in a prudent manner.

the
competence of the directors or the senior management to conduct the business of a trustee,
pension fund manager or custodian in a prudent manner.

61

61

(2) An auditor who acts in good faith in response to a request made by the Board, by giving
information or opinion on a matter or situation to the Board is not liable for breach of duty. (3) An auditor of a trustee, pension fund manager or custodian who contravenes or negligently
fails to comply with the provisions of subsection (1) commits an offence and is liable on
summary conviction to a fine of two hundred and fifty penalty units or to a term of
imprisonment of not more than six months or to both. (4) A trustee, pension fund manager or custodian shall
(a) ensure that the pension fund managed is held in accordance with the provisions of this Act
or regulations made under the direction of the Board;
(b) take reasonable care to ensure that the management or safe keeping of the pension fund is
carried out in the best interests of the members;
(c) report to the Board, acts as regards the pension funds which are likely to adversely affect
the rights of the members under the scheme; and
(d) report to the Board the failure of an employer to remit contributions due or unpaid for more
than fourteen days.

the members under the scheme; and
(d) report to the Board the failure of an employer to remit contributions due or unpaid for more
than fourteen days.

Section 169—Specific obligation of the custodian
(1) A custodian shall maintain pension fund and assets in custody subject to the directions of
the trustee. (2) A custodian shall not utilise pension fund or assets in its custody to meet its own financial
obligation. Section 170—Report on frauds, forgeries, theft or other acts of dishonesty
A trustee, pension fund manager or custodian shall submit to the Board reports of any fraud,
forgery, theft or other acts of dishonesty that occurs in its establishment. Section 171—Notification of dismissed staff
(1) A trustee, pension fund manager or custodian shall notify the Board of a staff who is
dismissed or whose appointment is terminated on grounds of fraud, forgery, theft or other acts
of dishonesty. (2) The Board shall maintain a list of persons who have been dismissed, whose appointment
have been terminated or advised to retire on grounds of fraud and shall circulate the list to
trustees, pension fund mangers[sic] and custodians.

ment
have been terminated or advised to retire on grounds of fraud and shall circulate the list to
trustees, pension fund mangers[sic] and custodians.

Section 172—Prohibited employment
A trustee, pension fund manager or custodian shall not employ a person whose name is on the
list maintained by the Board under section 171 unless with the prior approval of the Board. Section 173—Penalty for non-compliance
(1) A trustee, pension fund manager or custodian who fails to comply with sections 170, 171
or 172 of this Act shall pay a penalty of an amount of not less than two hundred and fifty
penalty units to the Board for each violation. 62

170, 171
or 172 of this Act shall pay a penalty of an amount of not less than two hundred and fifty
penalty units to the Board for each violation. 62

(2) In addition to the penalty the Board may revoke the licence of the trustee, pension fund
manager or custodian in the case of persistent contravention. Section 174—Prohibited transactions
(1) A trustee or pension fund manager shall not
(a) hold pension fund assets, or
(b) keep pension fund assets with a custodian where the trustee or pension fund manager has a
business interest, shares or any other interest in that custodian. (2) An employee of the trustee or pension fund manager shall not engage in a business
transaction or trade in any manner with the trustee or pension fund manager as a counterpart
or with a subsidiary in relation to pension fund or assets. Investment of Pension Fund
Section 175—Investment of pension fund
A trustee or pension fund manager shall invest pension contributions received under this Act
in order to obtain safe and fair returns on the amount invested.

ee or pension fund manager shall invest pension contributions received under this Act
in order to obtain safe and fair returns on the amount invested.

Section 176—Permitted investments
Subject to guidelines that the Board may issue, pension fund and assets shall be invested in any
of the following:
(a) bonds, bills and other securities issued or guaranteed by the Bank of Ghana or the
Government of Ghana;
(b) bonds, debenture, redeemable preference shares and other debt instruments issued by
corporate entities and listed on a stock exchange registered under the Securities Industry Act,
1993, (P.N.D.C.L. 333)
(e) ordinary shares of limited companies listed on a Stock Exchange and registered under the,
Securities Investment Act 1993 (P.N.D.C.L. 333) with good records, declared and paid
dividends in the preceding five years;
(d) bank deposits and bank securities;
(e) investment certificates of closed-end investment fund or hybrid investment funds listed on
a Stock Exchange registered under the Investments and Securities Industry Act, 1993
(P.N.D.C.L.

d investment fund or hybrid investment funds listed on
a Stock Exchange registered under the Investments and Securities Industry Act, 1993
(P.N.D.C.L.

333) with a good record of earning;
(f) units sold by open-end investment funds or specialist open-end investment funds listed on
the stock exchange recognised by the Board;
(g) bonds and other debt securities issued by listed companies;
(h) real estate investment; and
(i) other forms of investment, that the Board may determine. Section 177—External investments
63

by listed companies;
(h) real estate investment; and
(i) other forms of investment, that the Board may determine. Section 177—External investments
63

(1) A trustee or pension fund manager may invest pension fund assets in units of investment
funds except that investment fund may only be invested in the categories of investments
specified in section 176 of this Act. (2) The Board may recommend to the President through the Minister responsible for Finance
for approval, the investment of pension fund assets outside the country except that any amount
to be invested outside, shall not exceed a percentage of total funds available for investment as
determined by the Board. (3) External investments shall be subject to the Bank of Ghana foreign exchange rules. Section 178—Restriction on investments
(1) A trustee or pension fund manager shall not invest pension fund assets in the shares or any
other securities issued by
(a) the trustee or pension fund manager or custodian, or
(b) a shareholder of the trustee or pension fund manager or custodian.

r securities issued by
(a) the trustee or pension fund manager or custodian, or
(b) a shareholder of the trustee or pension fund manager or custodian.

(2) A privately-managed pension fund shall not
(a) hold more than ten percent of any class of security issued by a single issuer;
(b) have more than ten percent of its total assets in the securities issued by a single issuer other
than that permitted for government and other public securities;
(c) make short sales; or
(d) borrow for investment purposes. Section 179—Restriction on sale, purchase or disposal of pension fund assets
A trustee or a pension fund manager shall not
(a) sell pension fund assets to
(i) itself or any shareholder, director or affiliate of the trustee or pension fund manager,
(ii) an employee of the trustee or pension fund manager;
(iii) the spouse of the persons referred to in paragraphs (i) and (ii); or
(iv) affiliates of any shareholder pension fund assets to the order of the trustee or pension fund
manager;
(b) purchase any pension fund assets; or
(c) apply pension fund assets under its management through loans and credits or as collateral
for loan taken by a person.

any pension fund assets; or
(c) apply pension fund assets under its management through loans and credits or as collateral
for loan taken by a person.

Section 180—Additional restrictions on investment
The Board may, impose additional restrictions by regulation on investments by trustees and
pension fund managers in order to protect the interest of beneficiaries of a scheme. Section 181—Penalty for non-compliance
64

stments by trustees and
pension fund managers in order to protect the interest of beneficiaries of a scheme. Section 181—Penalty for non-compliance
64

(1) A trustee or pension fund manager who fails to comply with a provision of this Part unless
otherwise provided in this Act is liable to such penalty as may be prescribed. (2) In addition to the penalty specified under subsection (1) the trustee or the pension fund
manager shall forfeit the profit from the investment to the beneficiaries of the scheme and if
there is a loss as a result of the investment the trustee and the pension fund manager shall be
surcharged with the loss. PART FOUR—GENERAL PROVISIONS
Supervision and examination
Section 182—Supervision and examination
(1) The Board shall conduct an inspection, examination or investigation of trustees, pension
fund managers or custodians at least once in a year to determine whether or not the provisions
of this Act or Regulations made under it, are being complied with. (2) Without limiting the scope of subsection (1), the Board may authorise one or more of its
officers or agents to inspect, examine or investigate activities of
(a) the basic national social security scheme,
(b) a trustee, pension fund manager, custodian, an employer or a corporate body.

estigate activities of
(a) the basic national social security scheme,
(b) a trustee, pension fund manager, custodian, an employer or a corporate body.

Section 183—Appointment of examiners
The Board may appoint its officers, agents or other qualified persons as examiners to discharge
duties under this Act. Section 184—Power of examiners
(1) An examiner shall in the performance of functions under this Act
(a) inspect, examine or investigate the books, activities and affairs of a person or body dealing
with pension fund;
(b) have access at any time during working hours to the books, accounts, documents and
vouchers of a trustee, pension fund manager, custodian or any other person or corporate body
that deals with pension fund;
(c) request from a director, manager, an officer of a trustee, a pension fund manager, custodian
or firm, any information or explanation that the Board considers necessary to enable it
determine whether or not the provisions of this Act or Regulations made under it are being
complied with. (2) In exercising its powers under subsection (1), the examiners shall exercise reasonable care
to avoid undue hindrance in the day-to-day activities of a trustee, pension fund manager,
custodian or any other person or corporate body.

onable care
to avoid undue hindrance in the day-to-day activities of a trustee, pension fund manager,
custodian or any other person or corporate body.

Section 185—Reports of the Board
(1) The Board shall forward a copy of its report to the trustee, pension fund manager or
custodian or any other person or body corporate, on completion of an examination or
65

rd a copy of its report to the trustee, pension fund manager or
custodian or any other person or body corporate, on completion of an examination or
65

investigation, and instruct that the report be placed before the governing board of the trustee,
pension fund manager, custodian or any other person or corporate body. (2) The governing body of the trustee, pension fund manager, custodian or any other body
corporate shall, within thirty days after receipt of the report convene an extraordinary meeting
to consider the report and submit its reactions and proposals for implementing any
recommendations to the Board. (3) A trustee, pension fund manager, custodian or a person or corporate body who fails to
comply with the provisions of subsection (2) commits an offence and is liable on summary
conviction to a fine of not more than fifty penalty units for each day that the offence continues. (4) Where the offence continues for more than thirty days, the Board may, suspend the licence
or certificate of registration of the trustee, pension fund manager or custodian in addition to the
fine.

rty days, the Board may, suspend the licence
or certificate of registration of the trustee, pension fund manager or custodian in addition to the
fine.

Section 186—Power of the Board to order a special examination
The Board may order a special examination or investigation of the books and affairs of a
trustee, pension fund manager or custodian where it suspects or is satisfied that
(a) it is in the public interest to do so;
(b) the trustee, pension fund manager or custodian
(i) has been conducting its business in a manner detrimental to the interest of beneficiaries of
the scheme;
(ii) does not have sufficient assets to cover its liabilities; or
(iii) has contravened a provision of this Act,
(c) an application has been made to the Board by
(i) a director, manager or shareholder of the trustee or the pension fund manager or custodian
to examine its company;
(ii) a beneficiary of an occupational pension scheme or provident fund or personal pension
scheme;
(iii) a trustee or a pension fund manager to examine the custodian of the pension fund assets
that the trustee or pension fund manager is managing; or
(iv) a custodian to examine the trustee for whom it is holding pension fund assets.

nd assets
that the trustee or pension fund manager is managing; or
(iv) a custodian to examine the trustee for whom it is holding pension fund assets.

Section 187—Power of the Board to gather information
(1) The Board shall in the performance of its functions under this Act or any other enactment,
request by notice that
(a) an employer,
(b) trustee, pension fund manager or custodian; or
(c) any other service provider or institution connected with pension matters;
66

t
(a) an employer,
(b) trustee, pension fund manager or custodian; or
(c) any other service provider or institution connected with pension matters;
66

submit specified documentation information in relation to its activities after giving reasonable
notice to that person. (2) The Board shall specify the place and period within which the information or documents
are to be submitted. Section 188—Search warrant
(1) A magistrate may issue a search warrant where the magistrate is satisfied on reasonable
grounds and on information on oath or affirmation given on behalf of the Board that there are
grounds to believe that
(a) a person has failed to comply with a request of the Board within the time period specified
in the notice and that required document and information has not been given to the Board;
(b) there are documents or information required in respect of which a notice has been issued
by the Board but that person may not comply with the notice, or may remove, tamper or destroy
the documents or information requested for by the Board; or
(c) an offence has been, or is being, committed by a person, and that there are documents or
information, which may be removed, tampered with or destroyed in relation to the offence.

eing, committed by a person, and that there are documents or
information, which may be removed, tampered with or destroyed in relation to the offence.

(2) A warrant issued under subsection (1) shall authorise a named representative of the Board,
in addition to a police officer and any other person named in the warrant to
(a) enter the premises specified in the warrant at a reasonable time within seven days from the
date of the warrant,
(b) search the premises and take possession of any document or information that appears to be
document or information of a type in respect of which the warrant was issued or take steps
necessary for preserving or preventing interference with the document or information;
(c) take copies of, or extracts from a document or information that appear to be of a type in
respect of which the warrant was issued,
(d) require a person on the premises to provide an explanation in relation to a document or
information that appears to be of a type in respect of which the warrant is issued or state where
the document or information may be found; and
(e) use reasonable force that may be necessary to retain possession of a document unless the
Court orders otherwise.

or information may be found; and
(e) use reasonable force that may be necessary to retain possession of a document unless the
Court orders otherwise.

(3) Except as provided by a Court, where the Board takes possession of a document, it shall
retain it for a period of three months but where proceedings for a criminal offence is
commenced against a person, the document shall be retained until the conclusion of the
proceedings. Disclosure of information
Section 189—Privileged document and information
(1) A person is not required to disclose information or produce a document if the information
or document is a privileged matter in accordance with the rules of privilege in legal
proceedings. 67

rmation or produce a document if the information
or document is a privileged matter in accordance with the rules of privilege in legal
proceedings. 67

(2) For the purpose of this section, information is privileged if it is communicated to a lawyer
by
(a) a client or a representative of the client for the purpose of receiving legal advice,
(b) a person or a representative of that person to seek legal advice from a Lawyer, or
(c) a person in contemplation of or in connection with legal proceedings;
(3) Information is not privileged if it is communicated or given with a view to furthering a
criminal purpose. (4) Despite subsection (1), a lawyer may be required under this Act to provide the name and
address of a client where necessary. Section 190—Supply of information and documents to foreign regulatory authorities
(1) A foreign regulatory authority may request the Board in writing to provide it with assistance
in connection with the exercise of its regulatory functions. (2) The Board may disclose information or provide documentation in its possession to the
foreign regulatory authority in accordance with this section.

(2) The Board may disclose information or provide documentation in its possession to the
foreign regulatory authority in accordance with this section.

(3) The Board shall not issue a notice to disclose information or provide documentation to a
foreign regulatory authority unless it is satisfied that the information or documentation to which
the request relates is reasonably required by the foreign regulatory authority for the purposes
of its regulatory functions. (4) The Board may for the purposes of this section take into account, in particular
(a) whether reciprocal treatment would be given to the Board in the country or territory of the
foreign regulatory authority;
(b) whether the request relates to the breach of a law or other requirement which does not have
a corollary in this country or involves the assertion of a jurisdiction not recognised by the
country;
(c) the seriousness of the case and its importance to persons in this country; and
(d) whether it is otherwise appropriate in the public interest to provide the assistance sought
(5) For the purpose of subsection (4) (a), the Board may request the foreign regulatory
authority, making the request to give a written undertaking, to give reciprocal treatment to the
Board.

, the Board may request the foreign regulatory
authority, making the request to give a written undertaking, to give reciprocal treatment to the
Board.

(6) Where a foreign regulatory authority fails to comply with a requirement of the Board the
Board may refuse to provide the assistance sought by the foreign regulatory authority. (7) The Board may refuse a request from a foreign regulatory authority if
(a) it is satisfied that information given to the foreign regulatory authority will be used in
proceedings against the person giving the information, other than proceedings for an offence
under this Act or for an offence of perjury or a similar offence; and
68

inst the person giving the information, other than proceedings for an offence
under this Act or for an offence of perjury or a similar offence; and
68

(b) the foreign regulatory authority undertakes to contribute towards the cost of exercising the
powers of the Board where the Board considers it appropriate. (8) The Board shall not exercise its powers under subsection (1) unless it is satisfied that the
information or documentation provided to the foreign regulatory authority is not subject to
privileges under this Act. Section 191—Publishing of reports
(1) The Board may publish in a form and manner that it considers fit, reports and-results of an
investigation. (2) For the purpose of the law of defamation, the publication of any matter by the Board shall
be absolutely privileged. Section 192—Register of schemes
(1) The Board shall compile and maintain a register of registered occupational pension
schemes, provident fund schemes and personal pension schemes. (2) In respect of each registered scheme, the Board shall record in the register the registered
information most recently provided to the Board in respect of the scheme.

ach registered scheme, the Board shall record in the register the registered
information most recently provided to the Board in respect of the scheme.

(3) Where a scheme has been a registered scheme, but has been, or is treated as being wound
up, or ceased to be a registered scheme, the Board shall maintain the most recent information
in the register in respect of that scheme. (4) Information in the register shall be recorded in a manner that the Board considers
appropriate including, the use of a device or facility that
(a) records or stores information in magnetic electronic form; and
(b) permits the information to be inspected or reproduced in legible and useable form. Section 193—Inspection of registers and information
(1) Subject to subsection (2), a person is entitled to
(a) inspect the registers and records kept by the Board that are designated as public records,
and
(b) request the Board to give a copy or certified copy of the report, or extract from a document
that the person is entitled to inspect on payment of the prescribed fee. (2) In respect of documents filed or kept in electronic form, the rights granted under subsection
(1) extend only to reproductions of those documents in useable written form produced in the
manner that the Board considers appropriate.

er subsection
(1) extend only to reproductions of those documents in useable written form produced in the
manner that the Board considers appropriate.

(3) A copy or reproduction of or extracts from a document or record kept and certified by the
Board is admissible in evidence in legal proceedings to the same extent as the original
document. Section 194—Electronic filing of documents
69

by the
Board is admissible in evidence in legal proceedings to the same extent as the original
document. Section 194—Electronic filing of documents
69

(1) The Board may by Regulations provide for a system to enable documents required or
permitted to be filed with the Board under this Act to be filed in electronic form. (2) A system for the filing of documents in electronic form shall provide for the
(a) criteria for authorising persons to file documents in electronic form, and
(b) security and authentication of the documents filed. Offences, penalties and enforcement
Section 195—Misappropriation of pension funds
(1) A trustee, pension fund manager, custodian or director who misappropriates pension funds
commits an offence and is liable on summary conviction to a fine of an amount equal to three
times the amount misappropriated or to imprisonment for a term of not less than ten years or
to both the fine and imprisonment. (2) A director or officer of a trustee, pension fund manager or custodian is personally liable for
any offence committed under this Act.

imprisonment. (2) A director or officer of a trustee, pension fund manager or custodian is personally liable for
any offence committed under this Act.

Section 196—Offences relating to fraud
A trustee, pension fund manager or a custodian who fails to comply with section 170 commits
an offence and is liable on summary conviction to a fine of two thousand penalty units or a
term of imprisonment of not more than two years or to both. Section 197— Power of the Board to apply additional sanctions
(1) Despite any other law and without limiting the penalties stipulated under this Act, the Board
shall, remove from office a director or officer of a trustee, pension fund manager or custodian
who contravenes sections 170 of this Act in addition to the penalties stipulated under this Act. (2) The Board may exercise the power conferred on it under subsection (1) in cases of
misconduct or dishonesty. Section 198—Offence by body corporate
Where an offence under this Act is committed by a body corporate, the body corporate and
each director or officer is deemed to have committed that offence and shall be prosecuted but
a person shall not be deemed to be guilty of the offence if the person proves that the offence
was committed without that persons knowledge or that that person exercised due diligence to
prevent the commission of the offence.

es that the offence
was committed without that persons knowledge or that that person exercised due diligence to
prevent the commission of the offence.

Section 199—Penalty for refusing to give information
An employer, trustee, pension fund manager, custodian or a person or body corporate who
(a) refuses to produce any book, accounts, document or voucher,
(b) refuses to give information or explanation, or
(c) with intent to defraud produces a book, accounts, documents or voucher or gives
information or explanation which is false or misleading
70

ion, or
(c) with intent to defraud produces a book, accounts, documents or voucher or gives
information or explanation which is false or misleading
70

commits an offence and is liable on summary conviction to a fine of not more than two hundred
and fifty penalty units or a term of imprisonment not exceeding six months or to both. Section 200—General penalty
A person who contravenes a provision of this Act for which a penalty is not provided is liable
on summary conviction to a fine of not more than one thousand penalty units or to a term of
imprisonment of not less than one year or to both. Section 201—Order to comply
Where a person is convicted of an offence under this Act or the Regulations, the Court may
order that person to comply with the provision of this Act or the Regulations for which that
person has been convicted in addition to any punishment it may impose. Section 202—Resolution of disputes
(1) An employee or beneficiary of a scheme who is dissatisfied with a decision of the trustee,
pension fund manager or custodian may request the Board in writing to review the decision in
accordance with this Act or any Regulations made under this Act. (2) A copy of each request shall be served on the relevant trustee, pension fund manager or
custodian.

his Act or any Regulations made under this Act. (2) A copy of each request shall be served on the relevant trustee, pension fund manager or
custodian.

(3) The Board in exercising powers under this section shall,
(a) conduct proceedings in a manner that avoids delays in the resolution of disputes, and
(b) dispose of any matter before it within three months from the date of receipt of the request. Section 203—Aggrieved persons - dispute settlement
A person aggrieved by an action or a decision of the Board may refer the matter for settlement
through an appropriate dispute resolution mechanism. Section 204—Effect of settlement
A settlement agreed to by the parties under this Act is binding on them and is enforceable by
the courts. Section 205—Pensions Adjudication Committee
(1) There is established by this Act a Pensions Adjudication Committee referred to as the
Adjudication Committee. (2) The Pensions Adjudication Committee consists of seven members, three of whom shall
constitute a panel for the determination of a petition or a complaint. (3) The object of the Adjudication Committee is to hear and determine a petition or complaint
made by a member of a scheme regulated by the Board or referred to it by the Board or, by a
Scheme. (4) A petition or complaint includes
(a) denial or refusal of a benefit,
71

eme regulated by the Board or referred to it by the Board or, by a
Scheme. (4) A petition or complaint includes
(a) denial or refusal of a benefit,
71

(b) quality or quantity of benefit,
(c) wrong computation of benefit,
(d) unreasonable delay in the processing and payment of benefits, and
(e) any other related matters. (5) The Adjudication Committee shall determine complaints before it in accordance with rules
that may be made by the Board with the approval of the Minister. Section 206—General indemnity
The Board, a member of the Board, employee or agent of the Board is not liable for acts done
or omitted in the discharge of a duty, the exercise of a power or the performance of a function
under this Act or any other enactment that assigns functions to the Board if the act or omission
was done in good faith. Miscellaneous provisions
Section 207—Regulations
(1) The Minister, on the recommendations of the Board may, by legislative instrument, make
regulations for the effective implementation of this Act.

s
(1) The Minister, on the recommendations of the Board may, by legislative instrument, make
regulations for the effective implementation of this Act.

(2) Without limiting the scope of subsection (1) the Minister shall make regulations to
(a) provide for approved trustees and applicants for approval to give undertaking to the Board
and to enter into arrangements to provide insurance against the risk of loss through malfeasance
or other illegal conduct;
(b) require approved trustees of registered schemes to provide information to scheme members
and prescribe the kind of information that is to be provided to them;
(c) provide for the payment of accrued benefits to or in respect of scheme members and the
transfer of accrued benefits from one registered scheme to another or from one account in a
registered scheme to another;
(d) provide for the preservation of the accrued benefits of scheme members until the occurrence
of a specified event including, but not limited to, the retirement, death or total incapacity of
scheme members;
(e) provide for the formulation of proper accounting systems including the keeping of proper
accounting records as regards registered schemes;
(f) prescribe requirements for trustees with respect to the keeping of scheme member's
accounts;
(g) permit trustees to deduct fees for administrative expenses from scheme members' accounts;
(h) provide for the auditing of the accounting records and financial statements of approved
trustees and registered schemes;
(i) prescribe the duties of auditors including the duty to report on specified matters to the Board
in specified circumstances;
72

registered schemes;
(i) prescribe the duties of auditors including the duty to report on specified matters to the Board
in specified circumstances;
72

(j) provide for the engagement or appointment of service providers by the approved trustee of
a registered scheme to provide services for the purpose of the scheme and for the delegation of
the trustee's functions in relation to the scheme to the service provider;
(k) prescribe the duties of service providers and other persons engaged or appointed by the
approved trustee of a registered scheme to provide services for the purpose of the scheme
including the duty to report on specified matters to the Board;
(l) provide for requirements to be complied with in respect of funds of registered schemes,
including
(i) the separation of the funds other assets of a registered scheme from other funds and assets
that are beneficially owned by employers who are participating in the scheme;
(ii) the application of funds and other assets of a registered scheme only for the purpose of the
scheme; and
(iii) rules that the funds and other assets of a registered scheme shall not subject to any charge,
pledge, lien, mortgage or other encumbrance, except in circumstances specified in the rules of
the scheme or by the Board,
(m) require approved trustees to delegate investment management of scheme funds to
independent pension fund managers registered with the Board;
(n) provide for arrangements for approved trustees of registered schemes in respect of scheme
assets to be held by custodians and the qualifications of custodians;
(o) provide for approved trustees of registered schemes to maintain specific internal control
procedures for the schemes;
(p) require persons to lodge returns with the Board containing specified kinds of information,
relevant to the performance of the functions of the Board;
(q) provide for
(i) the service or notification of documents;
(ii) the voluntary winding up of employer sponsored schemes, and
(iii) other matters that are incidental to the achievement of the objects of this Act.

ii) the voluntary winding up of employer sponsored schemes, and
(iii) other matters that are incidental to the achievement of the objects of this Act.

(3) A regulation made under this Act may
(a) apply generally or be limited in application by reference to specified exceptions or factors;
(b) apply differently according to different factors of a specified kind;
(c) authorise any matter or thing to be determined, applied or regulated by a specified person;
(d) prescribe fees including fees for the granting of approvals for the purposes of this Act;
(e) authorise the Board to charge for a service provided by the Board on a cost recovery basis;
(f) apply, adopt or incorporate by reference, with or without modifications, any publication,
either in force at the time of publication or as in force from time to time;
73

orporate by reference, with or without modifications, any publication,
either in force at the time of publication or as in force from time to time;
73

(g) prescribe offences in respect of contraventions of the regulations;
(h) provide for the imposition of a fine,
(4) Despite the Statutory Instruments Act, 1959 (No. 52) the penalty for the contravention of
Regulations shall be a fine of not more than two thousand, five hundred penalty units. Section 208—Operating guidelines and codes of practice
(1) The Board may issue guidelines for the purpose of giving guidance to
(a) approved trustees,
(b) pension fund managers,
(c) custodians,
(d) other service providers,
(e) the basic national social security scheme,
(f) the Controller and Accountant General Department, and
(g) participating employers and their workers, self-employed persons, and other persons
concerned with this Act. (2) A guideline may
(a) consist of a code, standard, rule, specification or provision related to occupational pensions,
provident fund or personal pension schemes or a class of these schemes;
(b) apply, incorporate or refer to a published or amended document in force, and
(c) require persons including persons belonging to a class to give specified information or
documents to the Board.

or amended document in force, and
(c) require persons including persons belonging to a class to give specified information or
documents to the Board.

(3) The Board shall publish the guidelines in the Gazette or in another print media determined
by the Board. (4) Where the Board amends or revokes a guideline, it shall publish it in the Gazette or in
another print media determined by the Board. (5) A person shall not incur a civil or criminal liability for the contravention of a guideline
issued under this section. (6) Despite subsection (5) the Board may impose the following sanctions for deliberate refusal
to apply the guidelines:
(a) imposition of a fine;
(b) suspension or revocation of a licence;
(c) suspension or cancellation of registration; or
(d) other sanctions determined by the Board. (7) In any legal proceedings, where the court is satisfied that a guideline is relevant to the
determination of a matter
74

s determined by the Board. (7) In any legal proceedings, where the court is satisfied that a guideline is relevant to the
determination of a matter
74

(a) the guideline shall be admissible in evidence, and
(b) proof as to whether or not a person contravened a guideline may be relied on by any party
to the proceedings to establish or negate the matter. Section 209—Exemption of pension funds from attachment and liquidation process
(1) Despite the provisions of any other enactment, pension funds or assets kept with a custodian
under this Act shall not be used for the payment of claims of a custodian's creditors in the event
of liquidation of the custodian. (2) In the case of winding up, liquidation or cessation of business of the custodian or any or all
of its shareholders, the pension funds or assets in the custody of the custodian shall not be
seized or be subject to execution of a judgment debt or from transfer to another custodian. Section 210—Act 592 amended
Section 60 subsection (3), (4) and (5) of the Internal Revenue Act, 2000, Act 592 is hereby
amended to reflect the new contribution rates imposed under section 3 of this Act.

), (4) and (5) of the Internal Revenue Act, 2000, Act 592 is hereby
amended to reflect the new contribution rates imposed under section 3 of this Act.

Section 211—Interpretations
In this Act, unless the context otherwise requires
"accounting records" includes books, vouchers, invoices, receipts, orders for the payment of
money, bills of exchange, cheques, promissory notes and such working papers and other
documents that are necessary to explain the methods and calculations by which accounts are
made up and other documents as may be prescribed;
"accrued benefits" in relation to a registered scheme, means the amount of each scheme
member's beneficial interest in the registered scheme at any time, including sums derived
from the contributions made by or in respect of that scheme member, together with the income
or profits arising from any investments thereof, but taking into account any losses in respect
thereof;
"active member" means a member of a pension scheme who is currently accruing benefits
under that scheme in respect of current service;
"actuary" means a person professionally trained in the technical and mathematical aspects of
insurance, pensions and related fields and who estimates how much money must be contributed
to a pension fund each year in order to provide the benefits that will become payable in the
future;
"annual report" means the method by which the trustees of a pension scheme communicate
financial and other information about the scheme to members, employers and other interested
parties.

hich the trustees of a pension scheme communicate
financial and other information about the scheme to members, employers and other interested
parties.

It is used in particular to describe the specific information which is required to be made
available by trustees in relation to each scheme year under the Disclosure Regulations and must
include a copy of the audited accounts and of the latest actuarial statement and other
information specified including a financial review by the trustees and an investment report. It
may contain additional information not required by the regulations;
75

ified including a financial review by the trustees and an investment report. It
may contain additional information not required by the regulations;
75

"annuity" means a series of payments, which may be subject to increases, made at stated
intervals until a particular event occurs. This event is most commonly the end of a specified
period or the death of the person receiving the annuity;
"approved trustees" means a company or an individual approved by the Board as a trustee in
accordance with this Act and, when used in relation to a registered scheme that is administered
by two or more approved trustees, it means the trustees jointly and severally;
"beneficiary" means a person entitled to benefit under a pension scheme or who will become
entitled on the happening of a specified event;
"Authority" means the National Pensions Regulatory Authority established under section 5 of
this Act. "Board" means the governing body of the Authority established under section 8 of this Act;
"Board of Trustees" means the governing body of the Trust established under section 35 of this
Act;
"CAP 30 Pension Scheme" means a pension scheme operated under the Pensions Ordinance,
No.

body of the Trust established under section 35 of this
Act;
"CAP 30 Pension Scheme" means a pension scheme operated under the Pensions Ordinance,
No.

42, Chapter 30 of 1950, for
(a) pensionable public servants in the civil and other public services, who have been in the
service before 1st January, 1972; and
(b) public servants who have been exempted by law from participation in the Social Security
Pension Scheme, i.e. the Judiciary, Legal Service, Police Service, Fire Service, Prison Service,
Immigration Service, the Bureau of National Investigation and the Research Unit of the
Ministry of Foreign Affairs. "contributory scheme" means a scheme to which both employers and employees contribute.

ation and the Research Unit of the
Ministry of Foreign Affairs. "contributory scheme" means a scheme to which both employers and employees contribute.

Under certain contributory plans participants may be required to contribute as condition of
eligibility;
"Chief Executive" means the Chief Executive Officer of the Authority appointed under section
16 (1);
"corporate trustee" means a company which acts as a trustee;
"custodian" means a person whose business it is to keep custody of cash, securities and
documents of title to assets belonging to others;
"defined benefit scheme" means a pension scheme providing a defined benefit formula for
calculating benefit amounts without regard to contributions;
"defined contribution scheme" means a pension scheme in which the contributions are made to
an individual account for each participant. The retirement benefit is dependent
upon the investment experience and in the case of profit sharing plans, amounts which may be
allocated to the amount owing to forfeitures by terminating employees;
"death benefit" means benefit payable to the spouse or dependants of a deceased scheme
member, or to that member's estate, on death in service or after retirement. It may consist of a
lump sum, a return of contributions or a pension;
76

member, or to that member's estate, on death in service or after retirement. It may consist of a
lump sum, a return of contributions or a pension;
76

"dependants" include
(a) members of the family of a member as specified in the Schedule, and
(b) other persons who the member is obliged to maintain under the Children's Act, 1998 (Act
560) or otherwise and who were dependent on the earnings of the member at the time of death
of the member;
"early retirement age" means an age defined by the terms of a pension plan which is earlier
than normal retirement age, at which a participant may receive an immediate, possibly reduced,
pension under the plan;
"eligibility" means the conditions which must be met for a person to be a member of a scheme
or to receive a particular benefit and may relate to age, service, status and type of employment;
"employer" means
(a) the owner of an establishment or the person who, or the Board 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 payment of his salary;
"employer sponsored scheme" means a single employer scheme whose membership is limited
to the employees of the sponsoring company and only its associated companies;
"establishment" means any office, shop, factory, mine, plantation, or any other place where
persons are employed on salary for work or business of any kind;
"existing scheme" means a private or company pension, provident fund, superannuation
scheme or gratuity scheme set up in respect of employees;
"fiduciary duties" means duties owed by one person to another to whom the first person the
fiduciary, stands in a position of trust.

ect of employees;
"fiduciary duties" means duties owed by one person to another to whom the first person the
fiduciary, stands in a position of trust.

The fiduciary is not permitted to profit from the
fiduciary's position and owes undivided loyalty to the other party and must avoid conflicts of
interest unless otherwise authorised by the other party after full disclosure;
"formal sector" means business units which are incorporated or registered, and are normally
subjected to regulation;
"funding" means a systematic program under which contributions are made into a pension fund
and assets accumulated in order to pay pension benefits;
"fund manager" means an individual or body to which the investment of the whole or part of
the assets is delegated by the trustees in accordance with the provisions of the scheme
documentation;
"group personal pension scheme" means an arrangement made for the employees of a particular
employer to participate in a personal pension scheme on a grouped basis not a separate scheme;
merely a collecting arrangement;
77

ees of a particular
employer to participate in a personal pension scheme on a grouped basis not a separate scheme;
merely a collecting arrangement;
77

"independent trustee" means an individual or corporate body with no direct or indirect
involvement with the pension scheme, sponsoring employer, or members, other than
performing the duties of the trustee;
"informal sector" refers to production units which are engaged in legitimate economic
transactions and are normally operated at a low level of organisation, with little or no division
between labour and capital which operates' on a small scale;
"interim trust deed" means a form of trust deed commonly used to establish a pension scheme
on broadly stated terms leaving the detailed provisions and the rules to be provided later by a
definitive trust deed;
"investment" means the process by which contributions and net income are used to increase
the value of pension fund assets by means of cash deposits, the purchase and sale of equities,
fixed interest stocks, bonds, property and other authorised investments;
"investment policy" means the periodic decisions regarding the types and proportions of assets
in which a pension fund is invested;
"liabilities" means amounts which a pension scheme has an obligation to pay now or in the
future.

tions of assets
in which a pension fund is invested;
"liabilities" means amounts which a pension scheme has an obligation to pay now or in the
future.

The amounts may not be immediately ascertainable and some liabilities may be
dependent on the occurrence of future events;
"master trust scheme" is a multiple-employer scheme whose membership is open to employees
of more than one employer, self-employed" persons and persons with accrued benefits
transferred from other schemes;
"member" means a person who has been admitted to membership of a pension scheme and is
entitled to benefit under the scheme;
"Minister" means the Minister responsible for pensions;
"non-contributory pension scheme" means a scheme in which the employer pays the entire cost
of the pension, with the employee not contributing. "normal retirement age" means the age, as established by a pension scheme, when full benefits
can be received. "notice" means notice in writing;
"occupational pension scheme" means a pension scheme offered through an individual's
employment to private or public sector workers.

otice in writing;
"occupational pension scheme" means a pension scheme offered through an individual's
employment to private or public sector workers.

Benefits are generally paid as lump sum, but
could also be paid as an annuity or a combination of lump sum and annuity;
"organised labour" means an association or union formed by workers the principal purpose of
which is to promote their economic and social interest and which is registered under the Labour
Act, 2003 (Act 651);
"past service" means service before a given date or service before entry into the pension
scheme;
"past service benefit" means a benefit granted for past service;
"pension fund assets" means assets which collectively constitute a pension Fund;
78

;
"past service benefit" means a benefit granted for past service;
"pension fund assets" means assets which collectively constitute a pension Fund;
78

"pension fund" means an investment fund within the Pension Scheme which is intended to
accumulate during an individual working life from contributions and investment income, with
the intention of providing income in retirement from the purchase of an annuity or in the form
of a programmed withdrawal, with the possible option of an additional tax free cash lump sum
being paid to the individual;
"pension scheme" means an employee benefit scheme which provides retirement benefits by
the establishment of a trust fund or the purchase of insurance or annuity contracts or a
combination of both and benefits may be paid either as an annuity or as a lump sum;
"pensioner" means a person who is currently receiving a pension from a pension scheme
"premises" includes a vehicle, vessel or aircraft;
"prescribe" means prescribed by regulations made under this Act;
"preserved benefits" means benefits arising on an individual ceasing to be an active member of
a pension scheme, payable at a later date;
"President" means the President of the Republic of Ghana;
"private pension scheme" means pension schemes established by private in contrast to
governmental, agencies, including commercial, industrial, labour and service organizations,
non-profit organizations, and non-profit religious, educational, and charitable institutions;
"Provident Fund" means a fully funded, defined contribution scheme in which funds are
managed privately and benefits paid as lump sum to the employee or his dependants in case of
death.

ed, defined contribution scheme in which funds are
managed privately and benefits paid as lump sum to the employee or his dependants in case of
death.

In some cases it is possible for the employee to draw income prior to retirement to meet
specific needs;
"retirement" means the attainment of the statutory retirement age, or on voluntary retirement;
"registered scheme" means an occupational pension scheme or provident fund scheme
registered under section 131 as an employer sponsored scheme or a master trust scheme or
registered under section 137 as personal pension scheme;
"salary" includes the 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 the worker at fixed or determinable intervals of time
(a) in respect of normal periods of work to be performed by the worker;
(b) where payment is calculated in relation to set tasks, in respect of the number of tasks
completed by the worker; and
(c) where payment is calculated in relation to the volume of work done, in respect of the volume
completed by the worker, emoluments earned by the worker or 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, traveling allowance, bonus,
commission, or any other similar allowance payable to the worker;
"Scheme" means the Contributory Three-tier Pension Scheme established under section 1 of
this Act;
79

y other similar allowance payable to the worker;
"Scheme" means the Contributory Three-tier Pension Scheme established under section 1 of
this Act;
79

"scheme member" in relation to a registered scheme, means a person who has a beneficial
interest in the registered scheme;
"Security and Exchange Board" means the Securities and Exchange Agency established under
section 1 of the Securities Industry Law, 1993 (P.N.D.C.L.

e;
"Security and Exchange Board" means the Securities and Exchange Agency established under
section 1 of the Securities Industry Law, 1993 (P.N.D.C.L.

333);
"self-employed person" means a person who has no other employer but himself or herself and
works on his or her own account or with others;
"service provider" in relation to an occupational pension scheme or provident fund scheme,
includes an investment manager, custodian of scheme assets or other person appointed or
engaged by the trustee of the scheme to provide services for the purpose of the scheme, and a
person to whom the provision of those services is delegated by the manager, custodian or other
person, but does not include a person appointed or engaged as an auditor, solicitor or actuary;
"Trust" means the Social Security and National Insurance Trust established under section 32
of this Act;
"trust deed" means a legal document, executed in the form of a deed, which establishes,
regulates or amends a trust;
"trustee" means an individual or company appointed to carry out the purposes of a trust in
accordance with the provisions of the trust instrument and general principles of trust law;
"trustee report" means a report by the trustees describing various aspects of a pension scheme
and it may form part of the annual report;
"vesting" means the right of an employee to the benefits that the employee has accrued, or
some portion of them, even if employment under the plan terminates.

" means the right of an employee to the benefits that the employee has accrued, or
some portion of them, even if employment under the plan terminates.

An employee who has
met the vesting requirements of a pension plan is said to have a vested right;
"voluntary contribution" means a contribution paid to a registered scheme in accordance with
this Act; and
"worker" includes a person who is employed for salary in any kind of work, manual or
otherwise, in or in connection with the work of an establishment, and who gets his salary,
directly or indirectly from the employer, and any person employed by or through a contractor
in or in connection with the normal work of the establishment, who is
(a) employed in this country but not as a member of the crew of any ship; or
(b) employed as a permanent resident of Ghana,
(i) as a member of the crew of a ship, the owners of which have an office or agents in Ghana;
or
(ii) outside Ghana but employed by an employer in Ghana. Section 212—Repeal and savings
(1) The following enactments are hereby repealed:
(a) Social Security Act; 1991 (P.N.D.C.L. 247);
(b) Long-Term Savings Act, 2004 (Act 679):
80

avings
(1) The following enactments are hereby repealed:
(a) Social Security Act; 1991 (P.N.D.C.L. 247);
(b) Long-Term Savings Act, 2004 (Act 679):
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(2) The repeal of the enactments shall not affect any additional fringe benefits, other than
pension and gratuity enjoyable upon retirement by a person before the commencement of this
Act except as provided by this Act. (3) Despite the repeal the regulations, bye-laws, notices, orders, directions, appointments or
any other act lawfully made or done under the repealed enactment and in force immediately
before the commencement of this Act shall be considered to have been made or done under
this Act and shall continue to have effect until reviewed, cancelled or terminated. (4) The assets, rights, obligations and liabilities existing under the Social Security Act, 1991
(P.N.D.C.L. 247) are herby[sic] transferred to the Trust. Transitional provisions
Section 213—Enactments applicable for four years
(1) The following enactments and schemes shall on the commencement of this Act apply for a
transitional period of four years and cease to be in force after that period
(a) the Pensions Ordinance No. 42 of 1950 (CAP 30) as amended;
(b) Teachers Pension Ordinance 1955 as amended;
(c) Ghana Universities Staff Superannuation Scheme;
(d) Ghana Police Pensions Act, 1985 (P.N.D.C.L.

d;
(b) Teachers Pension Ordinance 1955 as amended;
(c) Ghana Universities Staff Superannuation Scheme;
(d) Ghana Police Pensions Act, 1985 (P.N.D.C.L.

126.);
(e) Public Legal Officers Pensions Amendment Act 1986 (P.N.D.C.L. 165);
(f) Immigration Service Pensions Act 1986 (P.N.D.C.L. 226);
(g) Prisons Services Pensions Act 1987 (P.N.D.C.L. 168);
(h) section 34 of the Security and Intelligence Agencies Act 1996 (Act 526) and
(i) section 27 of the National Fire Service Act, 2000 (Act 537). (2) The Board shall, ensure that the pension schemes in the country are unified in accordance
with regulations made under this Act within five years after the commencement of this Act. Section 214—Payment of Pension Benefits Under the Cap 30 Scheme
The Controller and Accountant-General's Department shall continue to
(a) administer the Cap 30 and other related schemes;
(b) pay gratuity and pension to the existing pensioners and the category of officers exempted
under section 31 of this Act; and
(c) pay monthly pension to retired public servants at present under Cap 30 scheme, in
accordance with the relevant and applicable computations under the existing Cap 30 pension
scheme of the Public Service.

esent under Cap 30 scheme, in
accordance with the relevant and applicable computations under the existing Cap 30 pension
scheme of the Public Service.

Section 215—Death of exempt officers
Where an officer exempted under section 31 of this Act or a public servant presently under Cap
30 scheme dies while in service or in the course of duty, the Controller and Accountant
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tion 31 of this Act or a public servant presently under Cap
30 scheme dies while in service or in the course of duty, the Controller and Accountant
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General's Department shall pay to the next-of-kin or designated survivors a gratuity and
pension benefit based on the income of the deceased spouse. Section 216—Option for active public servants under Cap 30 and other related schemes
Any person at present under the Cap 30 and other related schemes and in active service shall
within four years of coming into force of this Act have the option to join the new scheme. Section 217—Decentralisation of public sector pension management
On the commencement of this Act, the administration and management of the Cap 30 pension
scheme shall be decentralized and there shall be regulations to this effect. Section 218—Temporary pension fund accounts
(1) From the commencement of this Act and before the licensing or registration of trustees,
pension fund managers and custodians, every employer to whom this Act applies shall open a
temporary Occupational Pension Fund Account with the Bank of Ghana.

fund managers and custodians, every employer to whom this Act applies shall open a
temporary Occupational Pension Fund Account with the Bank of Ghana.

(2) Subject to sections 3 (1), (2) and (3) of this Act, the five per centum remittance to the second
tier mandatory occupational pension scheme on behalf of the employee shall be lodged with
the Bank of Ghana pending the licensing of trustees, pension fund managers and custodians. (3) Every employer shall maintain proper books of accounts and records of contributions made
under this Act. (4) The Board shall within ninety days of licensing or registration of trustees, pension fund
managers and custodians compute and transfer all contributions and returns to the credit of the
Occupational Pension Fund Account opened with the chosen trustees licensed by the Board. Section 219—Accrued retirement benefits rights
(1) Subject to section 213 of this Act, the retirement benefits in respect of accrued or past
service earned by an employee shall be computed in accordance with the terms of conditions
of service existing before the commencement of this Act. (2) Each employee shall be issued with a Ghana Government Retirement Bond equivalent to
the total retirement benefit that was due the employee as computed at the commencement of
this Act.

h a Ghana Government Retirement Bond equivalent to
the total retirement benefit that was due the employee as computed at the commencement of
this Act.

(3) The Bank of Ghana shall establish a Retirement Benefit Bond Redemption Fund referred
to as the "Redemption Fund" Account into which the Government shall make periodic
payments. (4) The amount in the Redemption Fund shall be used by the Bank of Ghana to redeem any
retirement benefit bonds issued. (5) Payments into the Redemption Fund shall cease after the retirement benefit bonds issued
under subsection (2) have been redeemed. (6) On retirement of an employee
(i) the retirement benefits bond shall be redeemed by the Bank of Ghana from the redemption
fund account
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redeemed. (6) On retirement of an employee
(i) the retirement benefits bond shall be redeemed by the Bank of Ghana from the redemption
fund account
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(ii) the proceeds of the bond redeemed shall be transferred to the credit of the retirement savings
account of the employee; and
(iii) the employee shall utilise a percentage, to be prescribed by the Board, of the balance
standing to the credit of the employee's retirement savings account to purchase an annuity for
life from a life insurance company licensed by the National Insurance Commission with
monthly or quarterly payments. Section 220—Enactments inconsistent with this Act
On the commencement of this Act where an enactment relating to pensions is inconsistent with
this Act, this Act shall to the extent of the inconsistency prevail. Section 221—Directives to Pensions Reform Implementation Committee by Minister
Until the appointment of the Board of the Authority, the Minister may in writing direct the
Pension Reform Implementation Committee, appointed for the implementation of the pension
reforms, to perform functions of the Authority considered necessary for the effective
implementation of the provisions of this Act.

ion of the pension
reforms, to perform functions of the Authority considered necessary for the effective
implementation of the provisions of this Act.

SCHEDULE
(Section 213[sic])
Paternal System Maternal System
Mother, Father
Husband
Wife, Son, Daughter
Brother, Sister
Father's father
Father's brother Mother, Father
Husband
Wife, Son, Daughter
Brother, Sister
Mother's Mother
Mother's brother
Mother's Sister
Sister's Son
Sister's Daughter
Mother's Sister's Son
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Mother's Sister's Daughter
Date of Gazette Notification: 12th December, 2008
84