Facebook Instagram Linkedin Twitter Youtube
  • Home
  • Economy
    • Green Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Companies
    • Education
    • Energy
    • Fisheries and Aquaculture
    • Health
    • Insurance
    • Features
  • Opinions
    • Dr. Maxwell Ampong
    • Alberta Quarcoopome
    • Nana Yaa Ofori-Atta
  • Reports
  • BFT TV
  • Events
    • Ghana Economic Forum
    • African Energy Conference
    • The Money Summit
    • Youth Economic Forum
  • Subscribe
  • Sign In
Search
Sunday, June 1, 2025
Facebook Instagram Linkedin Twitter Youtube
Sign in
Welcome! Log into your account
Forgot your password? Get help
Create an account
Privacy Policy
Create an account
Welcome! Register for an account
A password will be e-mailed to you.
Privacy Policy
Password recovery
Recover your password
A password will be e-mailed to you.
The Business & Financial Times
  • Home
  • Economy
    • Green Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Companies
    • Education
    • Energy
    • Fisheries and Aquaculture
    • Health
    • Insurance
    • Features
  • Opinions
    • Dr. Maxwell Ampong
    • Alberta Quarcoopome
    • Nana Yaa Ofori-Atta
  • Reports
  • BFT TV
  • Events
    • Ghana Economic Forum
    • African Energy Conference
    • The Money Summit
    • Youth Economic Forum
  • Subscribe
  • Sign In
Home Business Banking & Finance Active private pension contributors overtake Basic National Scheme
  • Business
  • Banking & Finance
  • COVID-19
  • Headlines
  • Insurance
  • Top Headlines

Active private pension contributors overtake Basic National Scheme

January 18, 2021
0
Facebook
Twitter
WhatsApp
Email
Print

    While active private pension contributors stood at 1.7 million in 2019, those on the Basic National Social Scheme (BNSS) managed by the Social Security and National Insurance Trust (SSNIT) was 1.6million.

    Not only do Private pension funds have the highest number of active contributors its assets reached a record high of GH¢17.3billion in 2019 from GH¢13 billion the previous year, nearly a decade on since the introduction of the three-tier pension system.

    Meanwhile, those managed by SSNIT ended 2019 with net assets of GH¢8.9billion – negative growth of about 3 percent, which is an improvement on the 2018 growth of negative 5 percent.

    Per the National Pensions Act, Act 766, the first tier – or the BNSSS – is managed by the SSNIT, while the second tier is a defined contributory Occupational Pension Scheme mandatory for workers with 5 percent contribution made on behalf of members; and the third tier, which is a voluntary scheme and includes all Provident Funds and all other pension funds outside Tiers I and II, is privately managed by both corporate trustees and fund managers.

    The figures contained in the 2019 report of the NPRA show that the country’s total net assets available for benefits in the pensions industry now stands at GH¢26.3billion (US$4.8billion) by the end of 2019. This value represents a significant increase in pension funds of 18 percent compared to the 7 percent recorded in 2018.

    In terms of active employers, the data indicates that under the BNSS, there are 68,000 active employers against 700,000 for private-sector pensions.

    The report also shows that while the active labour force in the country is over 11 million, comprising over 3.2 million formal sector workers and over 7.9 informal sector workers, only 3.3 million of them are active pension contributors.

    This implies that a vast majority of the current active labour force are without any form of social protection and will have to depend on the benevolence of family and friends when they are no longer in active service.

    This could have implications on poverty and life expectancy indexes of the country.

    The Authority credits the growth of private-sector pensions to its ongoing efforts toward ensuring compliance with the mandatory second tier in the formal sector – adding that the activation of public sector schemes and the acquisition of prosecutorial powers also contributed greatly to the growth recorded.

    January 2021 marks exactly 11 years of implementation of the three-tier pension system in the country.

    VIAbftonline.com|Ghana
    SOURCEThomas More-Adingo
    • TAGS
    • Basic National Social Scheme (BNSS)
    • National Pensions Act
    • Social Security and National Insurance Trust (SSNIT)
    Facebook
    Twitter
    WhatsApp
    Email
    Print
      Previous articleBoG to arrest cedi’s depreciation with US$775m injection
      Next articleJapan Motors donates first locally assembled Nissan pickup to KNUST
      Sedem Segbefia

      RELATED ARTICLESMORE FROM AUTHOR

      Africa

      ADB MD urges manufacturers to leverage the current economic environment for sector growth

      Business

      Work in Progress with Samuel Fianko: Funding startups: A journey of resilience and patience

      Headlines

      Regulating plastics and plastics use: How well does the Environmental Protection Authority Act measure up?

      LEAVE A REPLY Cancel reply

      Log in to leave a comment

      Read Today's E-Paper









      Recent Posts

      Navigating complex problems in organisations – Shifting to rational complex problem-solving approaches

      Kodwo Manuel’s thoughts: Developing customer insights: the truth is in the data 

      Wheel of life series with Lady Sam: Manifest your visions

      Africa to get ‘stronger voice’ at IMF – Georgieva

      Gov’t won’t interfere in DBG operations – President Assures

      Most Popular

      Useless Column with Mawuli ZOBGENU: ‘Use your waist wisely’

      She ‘catch’ me again; this time, red-handed inside the ‘thing’. I used my head. If you don’t use your head, your body will suffer....

      ADB MD urges manufacturers to leverage the current economic environment for sector growth

      The Managing Director of the Agricultural Development Bank (ADB), Edward Ato Sarpong, has called on manufacturing companies in Ghana to take full advantage of...

      Work in Progress with Samuel Fianko: Funding startups: A journey of resilience and patience

      Welcome to Work in Progress, your source of unique, inspiring stories of founders of African start-ups. In this episode, I had a riveting conversation...

      Africa Union’s Agenda 2063: The role of Diaspora and Reparations to attaining the Africa...

      By Tawiah MENSAH Africa Day, observed on 25th May every year, is used by member states of the African Union (AU) to celebrate the progress...

      Regulating plastics and plastics use: How well does the Environmental Protection Authority Act measure...

      By Samuel ALESU-DORDZI  Plastics are considered as one of the principal sources of both land-based and marine pollution. On land, plastics are non-degradable. Their footprints are...

      About Us

      • About B&FT
      • Contact Us
      • FAQ
      • Webmail

      Legal & Privacy

      • Term & Conditions
      • Privacy Policy
      • Copyright
      • Cookies

      Services & Tools

      • Today's E-Paper
      • Individual Subscriptions
      • Group Subscriptions
      • Advertise
      • Android App
      © The Business & Financial Times. Copyright 2025. All rights reserved.
      MORE STORIES
      Features

      Useless Column with Mawuli ZOBGENU: ‘Use your waist wisely’