A NEWLY launched voluntary pension product, the Teachers’ Provident Fund Scheme (TPFS), has enrolled 2,649 members, all from the Ghana Education Service, as of the end of February this year.
Designed by GLICO Pensions Trustee Ltd for workers in the education sector TPFS was licensed by the National Pensions Regulatory Authority (NPRA) on April 5, 2023 and piloted to test its efficiency and acceptability.
The Director of GLICO Pensions, Dr Francis Sapara-Grant, disclosed at the launch of the product by GLICO in Accra on March 25, that those enrolled had contributed over GH¢15.2 million, with total assets growing to about GH¢18 million through prudent investment as of end February this year.
That’s not all, 36 members of the new voluntary contribution scheme have already received retirement benefits amounting to more than GH¢346,660.57.
Dr Sapara-Grant stressed that the performance affirmed the scheme’s impact and the company’s commitment to trust, transparency and professional excellence.
The TPFS is to enhance retirement income and financial security for workers in the education sector.
Developed in line with the National Pensions Act, 2008 (Act 766) and registered by the National Pensions Regulatory Authority (NPRA), the TPFS would strengthen the long-term financial well-being of education sector workers.
Workers in the educational sector can register through the company’s website or by visiting any GLICO Pensions branch across the country.
Contributions can be deducted directly from the Controller and Accountant-General’s payroll, or paid through bank transfer or mobile money.
At the launch event in Accra, the logo for the Scheme was also unveiled. The GLICO Group Executive Chairman, Dr Kwame Achampong Kyei, led that process and supported by GLICO Group CEO, E. Forkuo Kyei, other officials of the GLICO group and guests.
TPFS
The Chief Executive Officer (CEO) of GLICO Pensions Trustee Ltd, Belinda Dede-Tandoh, explained that each member under the scheme would be assigned a dedicated individual pension account to ensure transparency and easy monitoring of contributions.
She said members could contribute up to 16.5 per cent of their basic monthly salary tax-free, with the added option of making voluntary contributions to boost their savings.
She added that the TPFS provided a life insurance cover of GH¢1,000 for members within the first three years of enrolment.
In addition, she said contributors can access part of their funds after a minimum of three years, with subsequent withdrawals permitted every two years, adding that they may leverage their accumulated savings as collateral for mortgage facilities.
Beyond pensions, Mrs Dede-Tandoh said the scheme offered exclusive discounts on other GLICO products, including life and health insurance, child education policies and general insurance packages, making it a comprehensive financial solution.
“Teachers play a critical role in shaping the future of our nation. The TPFS is our commitment to ensuring that every teacher has access to a secure, flexible and rewarding savings platform that complements their mandatory pension benefits,” she said.
Retirement benefits
The Board Chairman of GLICO Pensions Trustee Ltd, Professor Kwaku Appiah-Adu, said the TPFS was a collaborative effort among educators, pension providers and institutions, built on strong governance structures and robust risk controls to ensure contributors’ funds were safe and capable of steady growth.
In a speech read on his behalf, the Minister of Education, Haruna Iddrisu, said the scheme aligned with the government’s efforts to improve teacher welfare both during active service and in retirement.
He commended GLICO Pensions Trustee Ltd in supporting national social protection systems while urging teachers and other education sector workers to take advantage of the scheme.
The Chief Executive Officer of the NPRA, Christopher Boadi-Mensah, said the scheme fitted into the voluntary third tier of the country’s three-tier pension system, designed to help individuals to build additional retirement savings beyond the mandatory schemes.
He commended GLICO Pensions Trustee Ltd for the initiative and reaffirmed the authority’s commitment to building an inclusive and resilient pension system for all Ghanaian workers.
Source:
www.graphic.com.gh