The three-tier pension system will enhance pension benefits and increase retirement income security for workers both in the formal and informal sectors of the economy and improve on the nation’s economic future.

Mr Hayford Attah Krufi, Chief Executive Officer, National Pensions Regulatory Authority (NPRA), said the three-tier pension system, which was introduced in January 2010 as part of national pensions reform process, sought to ensure that every worker received retirement and related benefits.

He said the objectives of the three-tier pension include diversification of the sources for pensions provision, enhancement of quantum pension include and the establishment of a uniform set of rules, regulations and standards for the administration and payment of benefits of workers.

Delivering his presentation at the 71st Annual New Year School and Conference at the University of Ghana, Mr Krufi said Ghana’s Reformed Pension System has a three-tier structure, compromising two mandatory schemes (first and second tiers) and a voluntary scheme (the third tier).

The 71st Annual New Year School and Conference is on the theme: “Attaining Ghana Beyond Aid: Prospects and Challenges.”

It is being organised by the School of Continuing and Distance Education, University of Ghana.

The Annual New Year School and Conference was introduced in 1948 and it brings together people from all walks of life to deliberate on topical issues of national and international interest.

Mr Krufi said the First Tier was a mandatory Basic National Social Security Scheme, which was a defined benefit scheme.

He said the contribution rate was 13.5 per cent of basic salary, including 2.5 per cent for National Health Insurance Scheme; adding that it only pays monthly pensions.

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