Frequently asked questions
FAQs on Occupational Pension Scheme (Tier 2)
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Tiers 2 Occupational Pension Scheme is a Defined Contribution scheme in which members contribute a specific amount to earn a benefit of the total amount contributed, plus any other returns accrued within the contribution period. Due to how funds are managed, it is unlikely to promise a specific return on the funds, but the investment policy provides the fund managers with benchmarks to work with for profitable returns.
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Your contributions and any returns that have accrued may be withdrawn:
upon the compulsory retirement age of 60 or early retirement at 55, attained the age of 50, and you are not employed or self-employed, the event of permanent medical disability,permanent emigration by non-Ghanaians to their country, or as a death benefit to nominated beneficiaries of a contributor
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The employer and employee contribute 5% of the total 18.5% to the pension scheme.
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Yes, every employer must enrol their employees in a Tier 2 pension scheme and contribute on their behalf.
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By completing and submitting the Prestige Employer Participation Form.
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Tier 2 pension scheme contributors can make additional contributions under the Tier 3 Personal Pension and Provident Fund Schemes. These schemes allow employees to enjoy a tax incentive of up to 16.5% of their basic salary.
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When you leave your current employer, you can either keep your accrued benefits with Prestige Pension Trust, which will be moved into a preservation account and invested to yield more returns, or instruct Prestige Pension Trust to transfer your accrued benefits to your new employer’s approved Tier 2 scheme.
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NPRA – the regulator will appoint a new Corporate Trustee for your company and transfer your accrued benefits to the Trustee’s custody account.
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You should submit the completed member enrolment forms containing the bio-data and beneficiary details of your new workers to Prestige Pension Trust to create their pension accounts and generate their membership ids before making contributions on their behalf.
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Prestige Pension Trust will provide you with monthly statements of account to enable you to monitor your contributions and returns.
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Your beneficiaries will provide Prestige Pension Trust with the required documents to claim your pension benefits.
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A lump sum payment (which includes your total contributions plus returns) will be made to your bank account.
FAQs on Personal Pension & Provident Fund Schemes (Tier 3)
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Yes, pension schemes operate under the National Pensions Act, 2008 (Act 766) and are strictly regulated by the authority -NPRA. There are strong precautions (such as separation of investment, administration, and custody functions) to prevent fraud. The investment activities and cost structure of pension schemes are regulated to avoid the loss of money.
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You can either make payment at any of the branches of Fidelity Bank, set up a Direct Debit order on your Bank account for periodical deductions, or pay your contributions online via Mobile Money by dialling the short code *776*100#.
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This is a pension scheme managed by a Prestige Pension Trust to provide retirement benefits to scheme members. Employers, employees or both can contribute to the scheme.
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No, individuals can sign up and contribute to the Prestige Personal Pension Scheme. On the other hand, employers can sign up their employees onto the Provident Fund Scheme.
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Prestige Pension Trust will provide you with an SMS of your contribution payments and monthly statements of account to enable you to monitor your contributions and investment returns.
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You can contribute a minimum of GH¢100.00 or a minimum lump sum deposit of GH¢1000.00 periodically.
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Yes, the Tier 3 pension schemes provide benefits of your total contributions plus investment returns.
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The schemes neither assures returns nor promises to outdo the market. The Tier 3 schemes aim at a real (inflation-adjusted) return for continuity and growth.
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No, you can withdraw part of your funds after one (1) year of joining any of the schemes from your Savings sub-account if your contributions are post-tax and after ten (10) years if they are pre-tax.
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The current balance on your account will be paid to the nominated beneficiaries upon receipt of the death certificate and other relevant documents.
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Depending on the arrangement made by your institution, you, your employees or both can contribute up to 16.5% of the employees’ basic salary to enjoy the tax relief or more.
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Yes, retirement is when you stop working to live off your accumulated savings. Thus, if you fail to plan for it during your active working years, you may not be able to maintain a comfortable lifestyle during retirement.
