Nilla-Selormey-MD-UMB-GhanaFortiz can answer questions over where millions of second tier pensions may be

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

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

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

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

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

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

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

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

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

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  • 68 people like this.
  • Issah Sayibu Wunigarikam we need to be pro accountable not just transparent.
    5 hrs ? Edited ? Like ? 2
  • Chris Amuzu-Addo Our money ooo our money. I m sad because I know my contribution is part of it all. Ooooohhhh Ghana!!!!
    5 hrs ? Like ? 1
  • Mq Tontoh Phweeeew! Thank God I celebrated my 55th birthday in 2010.
    4 hrs ? Like ? 2
  • Alexis Kwame Amey Labour unions shd intensify the strike.
    4 hrs ? Like ? 2
  • Maame Ama Boateng My pensions must be intact. I wont sweat for someone else to enjoy!
    3 hrs ? Like
  • Edward Quasi Osei Eeeii, ay3 asem oooo. One day Ghanaians ll ask very big questions about their pension contributions with dangerous equipments….
    2 hrs ? Like ? 1
    Source-Franklin Cudjoe

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