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People’s Pension Trust is a company licensed by the National Pensions Regulatory Authority (NPRA), Ghana, to provide trustee services for the Ghanaian workforce, particularly, those in the informal sector.


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    THE 3-TIER PENSION SCHEME?

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    The Ghanaian pension industry is structured into three tiers, each carefully crafted to address various aspects of retirement requirements. This scheme reflects a comprehensive approach aimed at securing dignified livelihoods after one’s career.

    Tier 1: Basic National Social Security Scheme

    At the foundation of Ghana’s social security framework lies the Tier 1 scheme, known as the Basic National Social Security Scheme. This tier serves as a fundamental safety net for all workers across the nation. It operates as a defined benefit scheme, ensuring that workers receive predetermined benefits upon retirement, disability, or death (benefits are paid to nominated beneficiaries). As a cornerstone of the system, participation in Tier 1 is mandatory for all workers, with contributions set at 13.5% of their gross income. These contributions are managed by the Social Security and National Insurance Trust (SSNIT), safeguarding the financial security of Ghana’s workforce

     

    Tier 2: Occupational Pension Scheme

    Complementing the Tier 1 scheme is the Tier 2 Occupational Pension Scheme, designed to bolster retirement savings for Ghanaian workers. This tier operates on a defined contributory basis, empowering workers to actively build their pension funds throughout their careers. Mandated for workers, Tier 2 requires a 5% contribution rate on behalf of members. Unlike Tier 1, the management of Tier 2 contributions is entrusted to approved private trustees, fostering efficiency and flexibility in investment management. By diversifying options and leveraging professional expertise, Tier 2 enhances the resilience of workers’ pension portfolios, ensuring greater financial stability during retirement years

    Tier 3: Voluntary Provident and Pension Funds

    Completing Ghana’s comprehensive social security framework is Tier 3, encompassing Provident Funds and other Pension Funds beyond Tiers 1 and 2. While participation in Tiers 1 and 2 is mandatory, Tier 3 offers a voluntary avenue for workers to further augment their retirement savings. This tier provides flexibility and autonomy, allowing workers to explore additional avenues for retirement savings beyond the mandatory schemes.

    Provident Fund Scheme Under the provisions of the Pensions Act 2008, Act 766, the Provident Fund Scheme falls within the Tier 3 category, offering a flexible and tax-exempt avenue for retirement savings. This scheme allows employers and employees to contribute a combined total of up to 16.5% of the employee’s monthly basic salary. A significant advantage offered by the Provident Fund Scheme is the provision for tax-free withdrawals after a minimum period of 10 years. This means that participants can access their accumulated funds without incurring tax liabilities, providing greater financial flexibility during retirement.

    Personal Pension Scheme Although the Personal pension scheme (Voluntary Pension) focuses on the informal sector, it also serves as an avenue for formal sector workers to enhance their pension funds to augment their other pension funds.  One of the key pillars of our Personal Pension Scheme is flexibility. Contributions to the scheme are entirely voluntary, allowing members to align their savings strategy with their specific retirement goals. Whether aiming for early retirement, financial security in later years, or ensuring a legacy for loved ones, our scheme adapts to the diverse needs and aspirations of each member

     

    Upon joining the PPT Personal Pension Scheme, each member’s contributions are intelligently allocated across two distinct accounts:

    Savings Account: This account serves as a liquidity reserve, offering members the flexibility to access funds when needed. With the option to make withdrawals six months after the initial contribution, members can navigate unexpected financial challenges with confidence, knowing their savings are readily available.

    Retirement Account: Complementing the Savings Account is the Retirement Account, designed to provide long-term security and stability. Accrued benefits from this account are disbursed to members upon the occurrence of specific contingencies, such as reaching old age retirement, experiencing disability, or in the unfortunate event of death. This ensures that members can enjoy their golden years with peace of mind, knowing their financial well-being is safeguarded.

    Our varied contribution channels include.

    • USSD Code; *789*111#

    • Member Portal –https://app.peoplespension.global

    • PPT Pension App – https://onelink.to/svb53v

    • Bank Standing Order

     

    Whether through employer-sponsored Provident Funds or individual Pension Funds, Tier 3 empowers workers to take proactive steps towards securing their financial future beyond the minimum requirements of Tiers 1 and 2.

    If you want to sign up your employees on a seamless and time-tested Occupational Pension and Provident Fund Scheme call +233302738242,+233546629482 or +233246340234  for more information.

    To sign up for a Personal Pension simply dial *789*111# and follow the prompts or download the PPT Pension App on either AppStore or Play Store to begin. To read more visit www.peoplespension.global

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