Switzerland supports Ghana’s Pension Reforms
The Swiss Government grants USD 2.4 million to the Government of Ghana to support the National Pensions Regulatory Authority (NPRA) to perform its role as regulator, with a view to
ensuring a pensions system that protects and promotes the interest of pensioners while advancing the development agenda of the country.
The utilization of this grant is geared towards strengthening NPRA’s critical near- and medium-term capacity at the individual,organizational and institutional level.
This state of the art pensions system is a cornerstone in Ghana’s long awaited policy on aging. Indeed, as people tend to live longer, it is the ultimate goal for the NPRA to ensure security in
retirement income for all Ghanaians in both formal and informal sector of the economy. A strong and well-regulated pension sector facilitates the development of financial markets, in
particular local capital markets, through diversifying sources of funds, mobilizing long-term savings for productive purposes and broadening the investor base. Strengthening the capacity of the NPRA to
regulate and monitor the pension sector, therefore, will contribute both to the soundness of the financial system and the longer-term fiscal sustainability, which are essential framework conditions for
sustainable economic growth.
The reforms which culminated in the National Pensions Acts, 2008 (Act 766) established a contributory new three tier pension scheme. The National Pensions Act establishes a new three-tier
pension scheme with a first tier mandatory basic national social security scheme; a second tier mandatory occupational pension scheme; and a third tier voluntary pension scheme. The second and
third tiers are managed by licensed private pension providers. The new scheme is in line with international best practices and has high similarities to the Swiss pension model. The Act establishes
the National Pensions Regulatory Authority to regulate and monitor the operations of Social Security and National Insurance Trust (SSNIT), Licensed Trustees, Registered Pension Fund Managers and
Pension Fund Custodians and ensure the effective administration of pensions in the country. The new Pension Act represents the most significant reform in the financial sector over the last couple of years.
The NPRA plays a pivotal role in the new system but faces challenges of a still young institution. Given the crucial importance of a well-functioning pension system in poverty alleviation, the Swiss
Government grants USD 2.4 million to strengthen NPRA’s oversight and regulatory functions, to build up the human capacity of its staff and to establish a functional organisational structure to underpin its
operations.
Addresses for further enquiries
*Brigitte Cuendet, Head of Cooperation, Embassy of Switzerland, Tel.: 0302 246 228 or 0302 225 008.
*Magnus Ebo Duncan, Macroeconomist and Financial Sector Specialist, Embassy of Switzerland,
Tel.: 0302 246 228 or 0243628234: magnus.duncan@eda.admin.ch
*Laud A.K. Senanu, ACEO, National Pensions Regulatory Authority, Tel: 0302-972020
*Rita A. Adzovie, Director of Corporate Affairs, National Pensions Regulatory Authority: 0302-968692/ rita.adzovie@npra.gov.gh
About the Embassy of Switzerland
The Embassy of Switzerland in Ghana implements the official Swiss Economic Development Assistance to Ghana granted through the Swiss State Secretariat for
Economic Affairs (SECO). Switzerland’s assistance to Ghana concentrates on economic and trade measures in areas such as macro-economic stability and strengthening
and deepening financial markets. Released: 10th March , 2014