National Pensions Act, 2008 (Act 766)

This section establishes a contributory three-tier pension scheme.

The scheme’s purpose is to provide pension benefits, secure retirement income for workers, ensure benefits are paid when due, and set uniform rules for administering and paying retirement-related benefits.

Employers must deduct and remit worker and employer pension contributions on time, and may not recover the employer’s own contribution from workers.

The basic national social security scheme must operate under the Trust set up under section 32, and several privately managed pension schemes must be run by trustees approved by the Board.

This section establishes the National Pensions Regulatory Authority and gives it corporate status and certain powers.

The Authority’s object is to regulate and monitor the Scheme and ensure pensions are effectively administered in the country.

The Authority is empowered to regulate and oversee pension-related schemes and institutions, issue guidelines, investigate complaints, request information, charge fees, and impose administrative sanctions or fines.

This section sets out who makes up the Authority’s Board, who appoints its members, and what the Board must do.

Board members serve up to three years, may be re-appointed, may resign in writing, and can be removed or replaced in vacancy cases.

The Board must meet at least every three months, and the chairperson must call special meetings when at least one-third of members request one in writing.

A Board member with an interest in a matter must disclose that interest in writing and must not take part in the Board’s deliberations on that matter.

The Board may establish committees made up of Board members, non-members, or both, to perform a function.

Board members and committee members are entitled to be paid allowances approved by the Minister, after consulting the Minister responsible for Finance.

The Board may set up regional and district offices of the Authority, and those offices must carry out the Authority’s functions in the areas the Board directs.

The Minister may give policy directives to the Board.

The President must appoint a Chief Executive Officer with relevant expertise, and the CEO must serve on the terms set out in the appointment letter.

The Chief Executive Officer manages the Authority’s day-to-day affairs, answers to the Board, may delegate functions to an officer, and remains ultimately responsible.

The President must appoint the Authority’s Deputy Chief Executive Officer from a suitably qualified person, and the appointee holds office on the terms in the appointment letter.

The Deputy Chief Executive Officer must carry out functions assigned by the Chief Executive Officer and act when the Chief Executive Officer is absent.

The President must appoint a Solicitor Secretary for the Authority. The Solicitor Secretary is responsible to the Chief Executive, serves as secretary to the Board, and is in charge of the Legal department.

The President must appoint the Authority’s other necessary staff. Public officers may be transferred, seconded, or otherwise assist the Authority. The Authority may engage advisers on the Chief Executive Officer’s recommendation.

The Authority’s funds consist of Parliament-provided money, fines, fees, commissions, income earned by the Board, donations, grants, gifts, and other money approved by the Minister responsible for Finance.

The Board must keep proper accounting records and submit the Authority’s accounts for audit on time. The Auditor-General must audit the accounts and send the audit report to the Minister.

The Board must send an annual report to the Minister within one month after receiving the audit report, and the Minister must send that report to Parliament within one month after receiving it.

People performing duties under this Act must not disclose confidential information unless the Board authorises it.

A person authorised by the Board may inspect business premises, request records, make inquiries, seize apparent evidence of offences, and exercise other powers given by Regulations.

The Chief Executive Officer must prepare and submit a work programme and estimates of expected expenditure and income to the Board for approval no later than six months before each financial year starts.

The Minister may make regulations for implementing this Part, but only after consulting the Board.

The basic national social security scheme operates under the Trust established in section 32, and covered workers and certain self-employed persons must pay monthly contributions.

Section 30 does not apply to officers and men of the Ghana Armed Forces, and to any other person expressly exempted by law.

This section establishes the Social Security and National Insurance Trust and gives it corporate powers to sue or be sued, own property, and enter transactions.

The Trust’s purpose is to operate the basic national social security scheme and any other schemes set by law on the recommendation of the National Pensions Regulatory Authority.

The Trust must carry out the listed social security functions, including operating the pension scheme, managing the Fund, administering the scheme, ensuring social protection, investing funds under approved directives, working with complementary schemes, and controlling scheme funds and management.

The Trust is governed by a Board of Trustees, its members are appointed by the President, and the Board must ensure the Trust performs its functions properly.

Board of Trustees members must know the social security law, related regulations, investment policy statements, and other Board policy documents for administering the scheme.

Board of Trustees members serve for up to three years, may resign in writing, and may be removed or replaced in specified vacancy situations.

The Board of Trustees must meet at least every three months, the chairperson must convene extraordinary meetings on written request by at least one-third of members, and voting and presiding rules apply.

Board members with an interest in a matter must disclose that interest in writing and must not take part in the Board’s deliberations on that matter.

The Board of Trustees may establish committees, and those committees may include members and non-members of the Board.

Board of Trustees members and committee members are to be paid allowances approved by the Minister, in consultation with the Minister responsible for Finance.

The Board of Trustees may set up regional and district offices of the Trust, and those offices must carry out the Trust’s functions in the areas the Board directs.

The President must appoint a Director-General of the Trust, and the Director-General must serve on the terms stated in the appointment letter.

The Director-General manages the Trust’s day-to-day affairs, answers to the Board of Trustees, must carry out any further functions the Board assigns, and may delegate functions to a Trust officer but remains ultimately responsible.

The President may appoint Deputy Director-Generals for the Trust, and each Deputy Director-General holds office on the terms set out in the appointment letter.

The President must appoint staff for the Trust as needed for its proper and effective work, and the Trust may engage advisers if the Board of Trustees recommends it.

The Board of Trustees must have a Secretary, and the Secretary must organize Board business, keep meeting minutes, and do other tasks directed or delegated.

The Trust must have an internal auditor who reports to the Board of Trustees and is responsible to the Director-General.

The Trust must have an Actuary, and the Actuary must report to the Director-General and assess the social security scheme.

The Board of Trustees must keep proper accounts and records, submit the Trust’s accounts to the Auditor-General within 3 months after the financial year ends, and the Auditor-General must audit them within 3 months of receiving them and send the audit report to the Minister and the Board.

The Board of Trustees must send an annual report to the Minister and the Authority within one month after receiving the audit report, and the report must include the Auditor-General’s report.

The Authority must regulate the Trust’s activities to ensure compliance with this Act.

The Trust must obtain actuarial valuations from an external actuary at set intervals, and the Board of Trustees must receive and share valuation reports within the stated time limits.

The Trust does not have to pay corporate income tax, and the Minister for Finance may waive other taxes for the Trust if Parliament first approves.

Administrative expenses for the social security scheme are charged to the Fund, except certain expenses covered by subsections (2) and (3).

The Board of Trustees must not spend scheme funds or make deductions unless the Authority prescribes them or the Act authorises them.

The Board of Trustees must keep an account for each member, credited with that member’s contributions, and the Trust must send members an annual statement of account to their current or last known address.

The social security scheme applies to employers, workers in an establishment, certain people already covered before commencement, and self-employed persons who opt in.

A person may join the social security scheme only if they are at least 15 years old and no older than 45.

Workers aged 50 or above who already qualify for retirement benefits under an existing pension scheme are exempt from the scheme, but they may choose to join the new scheme.

A worker covered by the social security scheme must be given a Social Security Number when registered with the Trust. The number cannot be transferred, and the worker must use it throughout working life and for this Act. Employers must not use one worker’s number for another worker.

An existing pension or gratuity scheme does not exempt the employer or workers from this Act; the employer must deduct and pay contributions to the Fund, and may change existing scheme rules with approval or consent.

Employers must remit specified contribution amounts, submit monthly contribution reports, and hold deducted worker contributions in trust until payment is made.

If a contribution is unpaid on time, a monthly penalty is added and the Director-General must serve a demand notice on the defaulting employer.

If a worker has more than one employer at the same time, each employer is responsible only for its own obligations under the Act.

An employer must not reduce a scheme member’s salary or other emoluments because of contribution liabilities or other charges under the Act or Regulations.

The Board of Trustees must prepare and keep an investment policy statement for the social security scheme, review and revise it as needed, and follow Authority guidelines when preparing or revising it.

The Trust may invest pension fund assets in units of an investment approved by the Board of Trustees.

The Board of Trustees may invest pension fund assets outside the country if it follows Bank of Ghana foreign exchange rules and consults the Minister for Finance.

A social security scheme member is entitled to a superannuation pension if they retire at 60, or retire voluntarily at 55 with at least 15 years (or 180 months) of contributions.

A qualifying member of the social security scheme is entitled to invalidity pension, and a recovered person covered by subsection (1) may rejoin the scheme if the stated conditions are met.

A social security scheme member with less than 15 years of contributions, who retires compulsorily or voluntarily, is entitled to a lump sum equal to their contributions plus interest at 75% of the prevailing government treasury bill rate.

If a scheme member dies, a lump sum benefit is payable to the deceased’s family if they are dependants and validly nominated beneficiaries.

A non-Ghanaian member who can satisfy the Trust that they are emigrating or have permanently emigrated from Ghana must be paid a lump sum benefit.

The Minister may prescribe other classes of benefits by legislative instrument, after advice from the Authority and consultation with the Board of Trustees of the scheme.

Some social security members who are 55 or older and have worked at least 180 months in specified hazardous employment are entitled to a full retirement benefit when they retire.

People who meet the contribution, age, and application conditions can receive a pension, with a lower age threshold for certain mine and other specified workers.

This section sets how pensions are calculated, including a minimum pension base, increases for extra service, and Trust review if salary inflation is suspected.

This section sets how a survivor’s lump-sum benefit is calculated for nominated dependants after a member dies.

If a member is certified invalid by a medical board, the member is entitled to a pension set at whichever is higher: the minimum pension or the earned pension.

The Trust must review pension payments every year.

People joining the Social Security Scheme must give beneficiary details to their employer, employers must record and forward the details to the Trust, and members must review nominations at least every five years.

The Government of Ghana may make reciprocal agreements with another country that has a similar social security scheme.

Section 83 makes it an offence for a person to fail to register an establishment or worker, make false statements or false documents, fail to pay or submit contributions, obstruct Trust officials, or otherwise breach the Act without reasonable excuse.

The Attorney-General or an appointed Trust officer may start and conduct criminal proceedings, and a court may also order payment to the Trust when convicting someone.

If an offence is committed by a body of persons, directors/officers of a body corporate (other than a partnership) and partners of a partnership are treated as having committed it; a person is not convicted if they prove lack of knowledge or due diligence.

The Trust can recover overdue social security contributions, interest, and related monetary penalties as a debt within 12 years, its authorised officer may handle the recovery action, the Circuit and District Courts have jurisdiction over related civil and criminal matters, and the Trust may attach certain student-loan-related contributions.

When an employer’s property is sold or realised in these cases, sale proceeds cannot be distributed until the court first makes provision to pay amounts due by the employer under the Act.

This section protects social security scheme accumulations and certain contributions from assignment, charging, and attachment, with a stated exception for borrowers or guarantors under the Students' Loans Scheme Law.

This section exempts certain retirement, pension, and related social security contributions and benefits from tax.

People cannot sue the listed Trust officials for acts done in good faith for the Act’s objectives, and the Trust must indemnify personal liability for such good-faith acts.

Trust inspectors may enter premises to investigate, but they must show ID, and employers must provide requested records within seven days.

The Trust may keep, file, maintain, transfer, and receive member records electronically, and any electronic document system must set authorisation criteria and ensure security and authentication.

The Minister may make Regulations by legislative instrument for this Part, if advised by the Authority and recommended by the Board of Trustees.

This section sets transitional rules for pensions, transfers old scheme rights and liabilities to the new Trust, and keeps the old Trust board in office until a new board is appointed.

This provision defines “occupational pension scheme” for this Part.

Employers of establishments must remit a 5% contribution to approved trustees of occupational pension schemes, and any deducted worker contributions must be held in trust until paid over.

Existing private pension, superannuation, or gratuity schemes do not exempt covered employers or workers from this Act, and employers must deduct and pay contributions to the Fund at the rates set by the Act.

Contributions paid to the approved trustees of a scheme, and investment income from a member’s accrued benefits, vest in the member as accrued benefits.

A scheme trustee must not pay or dispose of accrued benefits except as allowed by the Act, and an employee or self-employed person has no right or entitlement to accrued benefits except as allowed by the Act.

A departing member of an employer-sponsored scheme must choose to transfer accrued benefits to another scheme, unless the member has already exercised the transfer option under the scheme rules.

This section says when a scheme member or, in one case, a non-citizen leaving Ghana may receive accrued benefits as a lump sum, and requires the trustee to pay benefits to beneficiaries after a member’s death.

A member’s accrued benefits in an occupational pension scheme cannot be seized, pledged, charged, or transferred.

A scheme must have rules that prevent assigning benefits, but it may allow a member to use a benefit to secure a mortgage for a primary residence.

Employers and employees do not pay income tax on contributions to a mandatory occupational pension scheme.

Employers must keep up-to-date records about direct payment arrangements and send a copy to the scheme trustees; trustees must notify the Board and worker if a contribution is unpaid, and send members statements. Breach can lead to an offence and a fine.

This section defines “provident fund scheme” and “personal pension scheme.”

A personal pension scheme applies to certain individuals, including voluntary contributors and people in the informal sector without other covered retirement or pension schemes. Some of their contributions may be accessed before retirement under the scheme rules.

An employer may let an eligible worker join and contribute to a provident fund or personal pension scheme, but the employer is not required to pay the worker’s contributions.

Self-employed persons who meet the age condition may join and pay into a personal pension scheme, and contributors may withdraw part of their personal savings account under the Act and the scheme rules.

Members may withdraw accrued benefits when retirement-age or time/disability conditions are met, and beneficiaries may withdraw a deceased contributor’s benefits.

A contributor not covered by a mandatory or other pension scheme is entitled to use part of accrued benefits to buy a life annuity and to receive a lump sum payment.

This section gives tax relief for certain pension and provident fund contributions, investment income, and some withdrawals that meet stated conditions.

A contributor may pledge or charge some or all accrued benefits, and a beneficiary who enforces that pledge or charge is liable for any tax on withdrawals under the scheme.

A scheme must have rules that stop benefit assignments, but it may allow a member to use benefits for a mortgage to buy a primary residence. Members are not liable to pay tax on withdrawals under this section.

An employer must help workers join and contribute to a personal pension scheme, make payroll deductions when a worker wants to contribute, remit those contributions to the approved trustee within 14 days after month-end, and keep deducted funds separate and in trust until remitted.

Employers must keep an up-to-date record of direct payment arrangements and share it with trustees; trustees must notify the Board and employees if contributions are unpaid and send members periodic payment statements.

A life insurer carrying on personal pension and provident fund business must keep a separate Pension Fund, keep a separate income-and-expenditure account, and identify the assets that count as Pension Fund assets in its accounts.

When a scheme is being wound up, the trustee must stop taking contributions, may merge schemes only with contributor approval and Board directions, and must appoint a Board-approved custodian if a custodian’s registration is withdrawn.

A director or trustee is not independent if certain relationships, holdings, roles, or unresolved associations with the applicant, employer, related persons, or scheme exist.

Certain pension schemes may only be managed by trustees who are approved and licensed by the Board.

A licensed trustee must perform the listed functions, including securing scheme registration.