NATIONAL PENSIONS ACT, 2008 (ACT 766) SS 125-221

125. Approval of application

(1) The Board may approve an application for appointment as trustee if the Board is satisfied that the applicant

(a) is capable of performing the functions that are required of an approved trustee; and

(b) has entered into an undertaking with the Board that the applicant shall not, in relation to a registered scheme of which the applicant is the approved trustee, refuse an application for membership of the scheme made by or on behalf of a person who is

(i) not precluded by a provision of this Act from being a member of the scheme, and

(ii) required under this Act to be a member of a registered scheme; and

(c) shall comply with the Regulations prescribed by the Board.

(2) Regulations referred to in subsection (1) (c) may include the following:

(a) qualifications that an applicant must have;

(b) financial resources that an applicant must have including capital adequacy;

(c) in the case of an application by a company,

(i) the membership of the company,

(ii) the objects of the company as set out in its constitution, and

(iii) the suitability of the company’s regulation and experience in administering pension fund schemes;

(d) in the case of an application by an individual, the applicant must

(i) have professional knowledge and experience to administer a pension fund; and

(ii) execute a performance guarantee.

126. Power to impose conditions

The Board may

(a) impose appropriate conditions with respect to the conduct of the applicant’s business; and

(b) specify conditions in a certificate issued to the trustee when making the appointment of a trustee.

127. Representation to the Board

(1) The Board shall offer an applicant the opportunity to make representation orally or in writing before an application for appointment as trustee is rejected.

(2) Where the Board refuses an application, the Board shall give in a written notice reasons for the refusal to the applicant.

(3) An applicant dissatisfied with the decision of the Board may refer the matter for settlement through an appropriate dispute resolution mechanism.

128. Waiver of conditions

The  Board  may  waive  a  condition  where  compliance  with  the  condition  in  a  particular  case  is  not reasonably practicable.

129. Application for registration of occupational pension scheme or provident fund scheme as employer sponsored scheme or master trust scheme

(1) An application for the registration of an occupational pension or provident fund scheme as an employer sponsored scheme may be made to the Board only by

(a) a company which has been approved as a trustee or has applied for approval as a trustee;

(b) two or more individuals who are approved trustees, or have applied for approval and at least one is an independent trustee; or

(c) a company and one or more individuals.

(2) An application for the registration of an occupational pension or provident fund scheme as a master trust scheme shall be made to the Board by an approved trustee that is a company or by a company that has applied for and been granted a licence under this Act.

(3) If an application is made by two or more approved trustees who are individuals, at least one of them must be an independent trustee.

(4) The Board may by regulations prescribe the qualifications of independent trustees for the purpose of this subsection.

130. Contents of application

(1) An application under section 129 shall

(a) specify particulars of the scheme to be registered,

(b) contain other information prescribed in guidelines issued under this Act, and

(c) be accompanied with

(i) a copy of the proposed rules that govern the scheme and other documents that may be prescribed in guidelines issued under this Act, and

(ii) an application fee of an amount to be determined.

(2) The Board may, require an applicant by notice to provide additional information and documents reasonably necessary to enable it evaluate the application.

(3) The Board may reject an application if an applicant does not provide information required by the Board within a specified time.

131. Consideration of application

(1) The Board shall consider an application for registration of a scheme and take a final decision within ninety days after receipt of the application.

(2) The Board may register a scheme if it is satisfied that the scheme complies or will comply with the requirements and standards prescribed by the regulations in accordance with this Act.

(3) The Board shall require the applicant to enter into an undertaking with respect to the administration of the scheme as a condition for registering an occupational pension or provident fund scheme including in the case of an application to register a scheme

(a) as an employer sponsored scheme, an undertaking to approve an application for membership of the scheme made by or on behalf of a relevant employee of the participating employer; and

(b) as a master trust scheme, an undertaking to approve an application for membership of the scheme made by or on behalf of any

(i) relevant employee in the formal sector, or

(ii) self-employed person who is fifteen years of age or above and below retirement age and engaged in the informal sector.

(4) Without limiting subsection (3), the Board may impose other conditions for the administration of an occupational pension scheme or provident fund scheme.

132. Refusal of application

(1) The Board shall not refuse an application without giving the applicant an opportunity to make representations either orally, in writing, or both.

(2) Where the Board refuses an application, the Board shall give reasons in a written notice to the applicant.

133. Certificate of registration

(1) On registration of an occupational pension or provident fund scheme, the Board shall issue a certificate of registration to the approved trustee of the scheme and, if there are any conditions with respect to the administration of the scheme, the Board shall specify the conditions in the certificate or in a document accompanying the certificate.

(2) The certificate shall specify whether the scheme is an employer sponsored scheme or a master trust scheme.

134. Waiver of condition

The Board may waive an applicant’s compliance with a condition imposed

(a) in a particular case, and

(b) where the person satisfies the Board that compliance is not, or has not been reasonably practicable in the circumstances.

135. Application for registration as personal pension scheme

(1) An application for the registration of a scheme as a personal pension scheme shall be made to the Board by

(a) a company that is a licensed trustee or has applied for approval to the Board;

(b) two of more individuals who are licensed trustees, or have applied for licence and at least one is an independent trustee; or

(c) such a company and one or more individuals.

(2) Regulations made under this section may prescribe the qualifications of independent trustees.

136. Contents of application

(1) An application for registration of a scheme as a personal pension scheme shall

(a) specify particulars of the scheme to be registered and contain other information, if any, as prescribed in guidelines issued under this Act; and

(b) be accompanied with

(i) a copy of the proposed rules that are to govern the scheme and other documents, as
prescribed in guidelines issued under this Act; and

(ii) an application fee of an amount prescribed by Regulations.

(2) The Board may, require an applicant by notice to provide additional information and documents reasonably necessary to enable it determine the application.

(3) If a requirement is not complied with within a reasonable time specified in the notice, the Board may reject the application.

137. Consideration of application

(1) The Board shall consider the application for registration of a personal pension scheme within thirty days and take a final decision within ninety days after receipt of the application.

(2) The Board may register a scheme as a personal pension scheme if the Board is satisfied that the scheme

(a) complies with, or will if registered comply with, the requirements and standards that are prescribed by the regulations, and

(b) will be governed by the laws of this country.

(3) The Board shall require the applicant

(a) to enter into an undertaking with respect to the administration of the scheme,

(b) not to refuse an application for membership of the scheme made by or on behalf of a

(i) relevant employee who is employed in the formal sector, or

(ii) self-employed person who is above fifteen years and below retirement age and engaged in the informal sector as a condition for the registration of a personal pension scheme under this section.

(4) Without limiting subsection (3), on the registration of a personal pension scheme, the Board may impose conditions as regards the administration or marketing of the scheme as it considers appropriate.

138. Refusal of application

(1) The Board shall not refuse an application for registration of a personal pension scheme without giving the applicant an opportunity to make oral or written representations.

(2) Where the Board refuses an application, the Board shall give reasons in a written notice for the refusal to the applicant.

139. Certificate of registration

(1) On registering a scheme as a personal pension scheme, the Board shall

(a) publish a notice of the registration in the Gazette, and

(b) issue to the approved trustee of the scheme a certificate of registration and the conditions for the administration or marketing of the scheme in the certificate or in a document accompanying the certificate.

(2) The certificate shall specify that the scheme is a personal pension scheme.

140. ower to impose, amend or waive conditions

(1) Where the Board decides that it is appropriate to impose or amend any conditions imposed as regards the administration or marketing of a personal pension scheme, the Board shall give to the licensed trustee

(a) notice of not less than thirty days of its decision and the reasons; and

(b) an opportunity to make written representations to the Board.

(2) The Board may waive an applicant’s compliance with a condition imposed

(a) in a particular case, and

(b) where the person satisfies the Board that compliance is not, or has not been, reasonably practicable in all the circumstances of that case.

(3) The Board shall not impose or amend any conditions with respect to the marketing of a registered scheme under this section unless the imposition or amendment, is within the ambit of the guidelines.

141. Requirement for member-nominated trustees

(1) The trustees of an occupational pension scheme shall ensure that within a reasonable period of the commencement date, arrangements are in place to provide for at least one-third of the total number of trustees to be member-nominated trustees, and implement those arrangements.

(2) Member-nominated trustees are trustees of an occupational pension scheme who are

(a) nominated as the result of a process in which the active members of the scheme are eligible to participate, and

(b) selected by some or all of the members of the scheme.

(3) The commencement date, in relation to a scheme, is the date upon which this section first applies in relation to the scheme.

(4) The arrangements for the scheme may provide for a greater number of member-nominated trustees than that required to satisfy the one-third minimum specified in subsection (1) only if the employer has approved the greater number and shall provide

(a) for the nomination and selection process to take place within a reasonable period of any requirement arising under the arrangements to appoint a member-nominated trustee;

(b that where there is a vacancy because insufficient nominations are received, the nomination and selection process shall be repeated at reasonable intervals until the vacancy is filled;

(c) that where the employer requires, a person who is not a member of the scheme must have the employer’s approval to qualify for selection as a member-nominated trustee; and

(d) that subject to paragraph (c) where the number of nominations received is equal to or less than the number of appointments required, the nominees are considered to be selected;

(e) that the removal of a member-nominated trustee requires the agreement of all the other trustees.

(5) The provisions in the arrangements of the scheme shall not exclude member-nominated trustees from exercising functions exercisable by other trustees because they are member-nominated trustees.

(6) This section does not apply in relation to an occupational pension scheme if

(a) each member of the scheme is a trustee,

(b) every trustee of the scheme is a company, or

(c) the scheme is of a prescribed description.

(7) In the case of an occupational pension scheme where the arrangements required under subsection (1) are not in place, or being implemented, a trustee shall be liable on summary conviction to a fine of two thousand penalty units or to a term of imprisonment of not more than two years.

142. Requirement for member-nominated directors of corporate trustees

(1) Where a company is a trustee of an occupational pension scheme and each trustee of the scheme is a company, the company shall ensure that within a reasonable period after the commencement date, arrangements are in place which provide for at least one-third of the total number of directors of the company to be member-nominated directors and implement those arrangements.

(2) Member-nominated directors are directors who are

(a) nominated as the result of a process which the active members of the occupational pension scheme are eligible to participate in the activities of the company, and

(b) selected by some or all of the members of that scheme.

(3) The commencement date, in relation to a company, is the date on which this section first applies in relation to the company.

(4) The arrangements may provide for a greater number of member-nominated directors than that required to satisfy the one-third minimum specified in subsection (1) only if the employer has approved the greater number.

(5) The arrangements shall provide

(a) for the nomination and selection place within a reasonable period of any requirement arising under the arrangements to appoint a member-nominated director;

(b) that where a vacancy is not filled because insufficient nominations are received, the nomination and selection process shall be repeated at reasonable intervals until the vacancy is filled;

(c) that where the employer requires, a person who is not a member of the scheme shall obtain the employer’s approval to qualify for selection as a member nominated director; and

(d) that subject to paragraph (c), where the number of nominations received is equal to or less than the number of appointments required, the nominees shall be deemed to be selected.

(6) The arrangements shall provide that the removal of a member-nominated director requires the agreement of all the other directors.

(7) The provisions in the arrangements shall not exclude member nominated directors from exercising the functions exercisable by other directors only because they are member-nominated directors.

(8) Where the same company is a trustee of two or more occupational pension schemes, subject to subsection (9), the

(a) schemes shall be treated as if they were a single scheme,

(b) members of each of the schemes shall be considered as members of that single scheme, and

(c) references to the employer shall be references to all the employers in relation to the schemes.

(9) This section does not apply in relation to an occupational pension scheme if the scheme is of a prescribed description.

(10) In the case of a company which is a trustee of an occupational pension scheme, where the arrangements required by subsection (1) are not in place or being implemented, the trustee of the company is liable on summary conviction to a fine of not more than fifty penalty units for each day that the offence continues or to a fine determined by the Board.

143. Knowledge and understanding of individual trustees

(1) A person who is an individual trustee of an occupational pension scheme shall be conversant with

(a) the trust deed and scheme rules,

(b) any statement of investment policy for the time being maintained under section 153 of this Act, and

(c) any other document recording policy adopted by the trustees relating to the administration of the scheme generally, in relation to each relevant scheme.

(2) An individual to whom this section applies shall be knowledgeable in the law relating to pensions and trusts, and principles related to

(i) the funding of occupational pension schemes,

(ii) investment of the assets of the schemes, and

(iii) any other matters as may be prescribed.

(3) The degree of knowledge and understanding required under subsection (1) is what is appropriate for the purpose of enabling the individual to exercise the functions of a trustee of any relevant scheme.

144. Knowledge and understanding of corporate trustees

(1) This section applies to a company that is a trustee of an occupational pension scheme.

(2) A company to which this section applies shall, ensure that each individual who performs a function of the company as trustee of the scheme is conversant with the following documents relevant to the performance of that function:

(a) the trust deed and scheme rules;

(b) any statement of investment policy for the time being maintained under section 153 of this Act; and

(c) any other document recording policy for the time being adopted by the trustees relating to the administration of the scheme generally, in relation to each relevant scheme.

(4) A company to which this section applies shall ensure that an individual who performs a function of the company as trustee of a relevant scheme has the requisite knowledge in the

(a) law relating to pensions and trusts,

(b) principles relating to

(i) the funding of occupational pension schemes,

(ii) investment of the assets of these schemes, and

(iii) any other matters as may be prescribed.

(5) The degree of knowledge and understanding required under subsection (4) is what is appropriate to enable the individual to perform the function.

(6) References in this section to the performance by an individual of a function of a company relates to acts done by the individual on behalf of the company which constitutes the performance of the function by the company.

145. Fees of trustees

A trustee shall be paid a fee subject to the limits determined by the Board.

Pension Fund Managers
146. Pension fund managers, registration requirements

(1) At the commencement of this Act, pension funds shall be managed by pension fund managers registered by the Board.

(2) A person shall not practise as a pension fund manager unless that person has been registered by the Board.

147. Functions of pension fund managers

A pension fund manager registered under this Act shall perform the following functions:

(a) invest pension funds and assets in accordance with the provisions of this Act;

(b) invest the funds in different investments to minimise investment risks whilst achieving the
best return within specific investment activities set by trustees;

(c) maintain books of account on transactions related to pension funds invested;

(d) submit its activities to inspections in the discharge of duties of trustees;

(e) submit records and reports that the Board may require; and

(f) perform other functions that the Board may prescribe that are incidental to the performance of its functions.

148. Requirements for registration as a pension fund manager

A person does not qualify to be registered as a pension fund manager for the purpose of this Act unless that person

(a) is independent from the trustee and custodian,

(b) is a body corporate,

(c) is licensed by the Security and Exchange Commission as an investment adviser under the [Securities Industry Act, 2016 (Act 929)],

(d) satisfies the minimum capital requirement and net asset value or any sum that may be determined by the Board, and

(e) has qualified management staff.

149. Application for registration

(1) A person who desires to operate as a pension fund manager of a scheme shall apply in writing to the Board.

(2) The application shall be in a form prescribed by the Board and be accompanied with the prescribed fee.

150. Grant of application

(1) The Board shall register an applicant to operate as a pension fund manager within sixty days after receipt of an application to operate as a pension fund manager upon satisfying itself that the applicant has fulfilled the conditions including the payment of fees.

(2) The Board may write to the applicant within thirty days after the receipt of the application if not satisfied with the application and may request the applicant to rectify any errors in the application or to satisfy any pre-condition for the registration within twenty-one days.

(3) The Board may register the applicant subject to conditions or restrictions as it considers appropriate and the Board may vary any condition or restriction in relation to the registration by notice to the pension fund manager.

(4) The Board shall register the applicant to operate as a pension fund manager where the applicant rectifies the error or satisfies the preconditions within the specified time.

151. Refusal to register

Where an application for registration is refused, the Board shall state the reasons for the refusal in the notice to the applicant.

152. Dispute settlement

An applicant who is dissatisfied with the Board’s refusal to register it to operate as a pension fund manager may refer the matter for resolution through an appropriate dispute resolution mechanism.

153. Investment policy

(1) A trustee shall have a statement of investment policy which shall be reviewed at intervals and on occasions as may be determined by the Board.

(2) A statement of investment policy, in relation to a trust scheme is a written statement of the investment principles governing decisions about investments for the purpose of the scheme.

(3) The trustee shall comply with prescribed requirements, before preparing or revising a statement of investment policy.

(4) A statement of investment policy shall be in the prescribed form and include the

(a) investment objectives,

(b) policy as to the kind of securities and other assets that may be acquired,

(c) policy as to the balance between different kinds of securities and other assets,

(d) risk in implementing the investment policy, and

(e) return expected in implementing the investment policy.

(5) Where in the case of a trust scheme, a statement of investment policy has not been prepared, maintained, reviewed or revised or the trustee has not complied with the obligation imposed on them under subsection (3), the trustee is liable to a penalty determined by the Board.

154. Fees of pension fund manager

A pension fund manager shall be paid the fee agreed with the trustee subject to the limits determined by the Board through notices.

Pension Fund Custodians
155. Pension fund custodians

At the commencement of this Act, pension fund assets shall only be held by pension fund custodians referred to as custodians registered by the Board.

156. Functions of custodians

A pension fund custodian shall

(a) receive contributions remitted by the employer under this Act on behalf of the trustees;

(b) notify the trustee within forty-eight hours of the contributions from an employer;

(c) hold pension fund and assets in trust for members;

(d) settle transactions and undertake activities related to the administration of pension fund investments including the collection of dividends and related activities;

(e) report to the Board on matters related to the assets being held on behalf of a trustee at periodic intervals that the Board may determine;

(f ) undertake statistical analysis on the investments and returns on investments with respect to pension funds in their custody and provide data and information to the trustee and the Board;

(g) execute in favour of the trustee, relevant proxy for the purpose of voting in relation to the investments; and

(h) perform other functions as may be directed by the Board.

157. Requirement for registration as custodian

A person does not qualify as a custodian for the purposes of this Act unless that person

(a) is a body corporate;

(b) is a bank, an insurance company or a non-bank financial institution;

(c) is a wholly owned subsidiary of a bank, an insurance company or a non-bank financial institution;

(d) is licensed by the Securities and Exchange Commission as a custodian under the [Securities Industry Act, 2016 (Act 929)];

(e) satisfies minimum capital requirement and net asset value or a sum determined by the Board;

(f ) is independent of the trustee and pension fund manager and all delegates of the trustee and pension fund manager; and

(g) has qualified management staff.

158. Conditions for registration

An application for registration to act as a custodian shall not be approved by the Board unless the custodian company

(a) issues a guarantee to the full sum and value of pension funds and assets held by it or to be held by it;

(b) is a subsidiary of a qualified parent company who shall issue the guarantee;

(c) undertakes to hold the pension fund assets to the exclusive order of the trustee on trust for the members as instructed by the trustee;

(d) has never been a custodian of a fund which was mismanaged or has been in distress due to a default, either fully or partially, of the applicant.

159. Application for registration

(1) A person who desires to act as a custodian of pension fund shall apply to the Board for registration in a form determined by the Board.

(2) The applicant shall pay the prescribed fee.

(3) The Board shall register the applicant within sixty days after the receipt of an application upon satisfying itself that the applicant has fulfilled the preconditions including the payment of fee required.

(4) Where the Board is not satisfied with the application, the Board may, request the applicant to rectify errors in the application in writing within thirty days after the receipt of the application or satisfy a precondition for the registration within twenty-one days.

(5) The Board shall register or refuse the registration upon the rectification of the error or satisfaction of the preconditions within the specified time.

(6) The Board may register an applicant subject to conditions or restrictions as it considers appropriate.

(7) The Board may vary a condition or restriction in relation to the registration at any time by written notice to the custodian.

(8) Where an application for a registration is refused, the Board shall state the reasons for the refusal in a notice to the applicant.

160. Dispute settlement

An  applicant  who  is  dissatisfied  with  the  Board’s  refusal  to  register  it,  may  refer  the  matter  for settlement through an appropriate dispute resolution mechanism.

161. Fees of custodian

A custodian shall be paid a fee as agreed with the trustee and subject to the limits determined by the Board.

162. Permitted expenditure from scheme funds

A trustee shall not charge any expenditure or make any deductions from the scheme fund other than those prescribed by the Board or authorised under this Act.

163. Maximum administrative charges

The total fees, charges and expenses on the scheme fund shall not exceed a maximum limit prescribed by the Board.

164. Revocation of licence or cancellation of registration

(1) The Board may revoke the licence or cancel the registration of a trustee, a pension fund manager or custodian, if

(a) the Board discovers that a statement was made in connection with the application which the applicant knew to be false or untrue,

(b) the trustee, pension fund manager or custodian is subject to insolvency proceedings or is likely to be wound up or dissolved;

(c) the conduct of affairs of the trustee, pension fund manager or custodian does not conform with the provisions of this Act or Regulations made under this Act;

(d) an event occurs which renders the trustee, pension fund manager or custodian ineligible to manage the pension fund or take custody of the pension fund, or

(e) the trustee, pension fund manager or custodian is in breach of a condition attached to the licence or registration.

(2) The Board shall give the trustee, pension fund manager or custodian at least twenty-eight days notice of its intention to revoke the licence or cancel the registration and shall consider representations made to it in writing by the trustee, pension fund manager or custodian within that period before revoking the licence or cancelling the registration.

(3) The notice under subsection (2) shall be in a prescribed form and specify the reasons for the revocation of the licence or cancellation of the registration.

(4) The revocation of the licence of a trustee, or cancellation of the registration of a pension fund manager or custodian does not limit the entitlements of beneficiaries under the scheme.

(5) The Board shall, suspend the power of the respective board of the trustee, pension fund manager or custodian over

(a) the pension fund and assets held or administered by the company; and

(b) appoint administrators with relevant qualifications to superintend the transfer of the assets and funds held or administered by the company and exercise the powers of the board of trustees where necessary in accordance with this Act, in the revocation order.

(6) The Board shall notify the public within seven days, through the publication in the Gazette, the electronic and print media in circulation of the list of trustees, pension fund managers and custodians whose licences or registration have been revoked or cancelled.

165. Publication of list of trustees, pension fund managers and custodians

(1) The Board shall, publish a list of trustees, pension fund managers and custodians licensed or registered by it at the end of each calendar year.

(2) The publication shall be in a manner that the Board considers appropriate.

166. Proper books of accounts and audit

(1) A trustee, pension fund manager or custodian licensed or registered under this Act shall cause proper books of accounts and records to be kept in relation to the scheme in a form that the Board may determine.

(2) A trustee, pension fund manager or custodian shall, not later than four months after the end of the year cause its accounts to be audited by qualified external auditors and prepare an audit report, which shall include a statement on the extent of compliance with the

(a) provisions of this Act and Regulations made under it,

(b) trustee’s duties under the trust deed and under this Act, and

(c) the scheme’s investment objective and other requirements under this Act.

(3) Without limiting the scope of subsection (2), the Board may order technical audits of the facilities, equipment, resources and accounts of a trustee, pension fund manager or custodian to be conducted as the Board considers appropriate.

167. Annual reports

(1) A trustee, pension fund manager or custodian shall submit an annual report to the Board within four months after the end of each financial year to give details of its activities in relation to the scheme in the preceding year.

(2) A report under subsection (1) shall include the audit reports referred to in section 166 (2) and any other reports that the Board may prescribe.

168. Reporting obligations of auditors, trustees, pension fund managers and custodians

(1) An external auditor appointed by a trustee, pension fund manager or custodian shall, in the discharge of duties report to the Board any

(a) extreme situation such as evidence of imminent financial collapse of the trustee, pension fund manager or custodian;

(b) evidence of an event or occurrence which has led or is likely to lead to material diminishing of the net assets of the trustee, pension fund manager or custodian;

(c) evidence of a significant weakness in the accounting and other records or the internal control systems of the trustee, pension fund manager or the custodian;

(d) report or statement on financial matters made by the management of the trustee, pension fund manager or custodian which is misleading;

(e) fraud or other misappropriation which the auditor believes has been committed by the directors or the management of the trustee or pension fund manager or custodian or has evidence of an attempt by the directors or senior management to commit fraud or misappropriation; or

(f) event or occurrence which affects or is likely to affect the auditor’s confidence in the competence of the directors or the senior management to conduct the business of a trustee, pension fund manager or custodian in a prudent manner.

(2) An auditor who acts in good faith in response to a request made by the Board, by giving information or opinion on a matter or situation to the Board is not liable for breach of duty.

(3) An auditor of a trustee, pension fund manager or custodian who contravenes or negligently fails to comply with the provisions of subsection (1) commits an offence and is liable on summary conviction to a fine of two hundred and fifty penalty units or to a term of imprisonment of not more than six months, or to both.

(4) A trustee, pension fund manager or custodian shall

(a) ensure that the pension fund managed is held in accordance with the provisions of this Act or regulations made under the direction of the Board;

(b) take reasonable care to ensure that the management or safe keeping of the pension fund is carried out in the best interests of the members;

(c) report to the Board, acts as regards the pension funds which are likely to adversely affect the rights of the members under the scheme; and

(d) report to the Board the failure of an employer to remit contributions due or unpaid for more than fourteen days.

169. Specific obligation of the custodian

(1) A custodian shall maintain pension fund and assets in custody subject to the directions of the trustee.

(2) A custodian shall not utilise pension fund or assets in its custody to meet its own financial obligation.

170. Report on frauds, forgeries, theft or other acts of dishonesty

A trustee, pension fund manager or custodian shall submit to the Board reports of any fraud, forgery, theft or other acts of dishonesty that occurs in its establishment.

171. Notification of dismissed staff

(1) A trustee, pension fund manager or custodian shall notify the Board of a staff who is dismissed or whose appointment is terminated on grounds of fraud, forgery, theft or other acts of dishonesty.

(2) The Board shall maintain a list of persons who have been dismissed, whose appointment have been terminated or advised to retire on grounds of fraud and shall circulate the list to trustees, pension fund managers and custodians.

172. Prohibited employment

A  trustee,  pension  fund  manager  or  custodian  shall  not  employ  a  person  whose  name  is  on  the  list maintained by the Board under section 171 unless with the prior approval of the Board.

173. Penalty for non-compliance

(1) A trustee, pension fund manager or custodian who fails to comply with section 170, 171 or 172 of this Act shall pay a penalty of an amount of not less than two hundred and fifty penalty units to the Board for each violation.

(2) In addition to the penalty the Board may revoke the licence of the trustee, pension fund manager or custodian in the case of persistent contravention.

174. Prohibited transactions

(1) A trustee or pension fund manager shall not

(a) hold pension fund assets, or

(b) keep pension fund assets with a custodian where the trustee or pension fund manager has a business interest, shares or any other interest in that custodian.

(2) An employee of the trustee or pension fund manager shall not engage in a business transaction or trade in any manner with the trustee or pension fund manager as a counterpart or with a subsidiary in relation to pension fund or assets.

Investment of Pension Fund
175. Investment of pension fund

A trustee or pension fund manager shall invest pension contributions received under this Act in order to obtain safe and fair returns on the amount invested.

176. Permitted investments

Subject to guidelines that the Board may issue, pension fund and assets shall be invested in any of the following:

(a) bonds, bills and other securities issued or guaranteed by the Bank of Ghana or the Government of Ghana;

(b) bonds, debenture, redeemable preference shares and other debt instruments issued by corporate entities and listed on a stock exchange registered under the [Securities Industry Act, 2016, (Act 929)];

(c) ordinary shares of limited companies listed on a Stock Exchange and registered under the [Securities Industry Act, 2016 (Act 929)] with good records, declared and paid dividends in the preceding five years;

(d) bank deposits and bank securities;

(e) investment certificates of closed-end investment fund or hybrid investment funds listed on a Stock Exchange registered under the Investments and Securities Industry Act, 2016 (Act 929) with a good record of earning;

(f) units sold by open-end investment funds or specialist open-end investment funds listed on the stock exchange recognised by the Board;

(g) bonds and other debt securities issued by listed companies;

(h) real estate investment; and

(i) other forms of investment, that the Board may determine.

177. External investments

(1) A trustee or pension fund manager may invest pension fund assets in units of investment funds except that investment fund may only be invested in the categories of investments specified in section 176 of this Act.

(2) The Board may recommend to the President through the Minister responsible for Finance for approval, the investment of pension fund assets outside the country except that any amount to be invested outside, shall not exceed a percentage of total funds available for investment as determined by the Board.

(3) External investments shall be subject to the Bank of Ghana foreign exchange rules.

178. Restriction on investments

(1) A trustee or pension fund manager shall not invest pension fund assets in the shares or any other securities issued by

(a) the trustee or pension fund manager or custodian, or

(b) a shareholder of the trustee or pension fund manager or custodian.

(2) A privately-managed pension fund shall not

(a) hold more than ten percent of any class of security issued by a single issuer;

(b) have more than ten percent of its total assets in the securities issued by a single issuer other than that permitted for government and other public securities;

(c) make short sales; or

(d) borrow for investment purposes.

179. Restriction on sale, purchase or disposal of pension fund assets

A trustee or a pension fund manager shall not

(a) sell pension fund assets to

(i) itself or any shareholder, director or affiliate of the trustee or pension fund manager,

(ii) an employee of the trustee or pension fund manager;

(iii) the spouse of the persons referred to in subparagraphs (i) and (ii); or

(iv) affiliates of any shareholder pension fund assets to the order of the trustee or pension fund manager;

(b) purchase any pension fund assets; or

(c) apply pension fund assets under its management through loans and credits or as collateral for loan taken by a person.

180. Additional restrictions on investment

The Board may, impose additional restrictions by regulation on investments by trustees and pension fund managers in order to protect the interest of beneficiaries of a scheme.

181. Penalty for non-compliance

(1) A trustee or pension fund manager who fails to comply with a provision of this Part unless otherwise provided in this Act is liable to such penalty as may be prescribed.

(2) In addition to the penalty specified under subsection (1) the trustee or the pension fund manager shall forfeit the profit from the investment to the beneficiaries of the scheme and if there is a loss as a result of the investment the trustee and the pension fund manager shall be surcharged with the loss.

PART FOUR
General Provisions
Supervision and Examination
182. Supervision and examination

(1) The Board shall conduct an inspection, examination or investigation of trustees, pension fund managers or custodians at least once in a year to determine whether or not the provisions of this Act or Regulations made under it, are being complied with.

(2) Without limiting the scope of subsection (1), the Board may authorise one or more of its officers or agents to inspect, examine or investigate activities of

(a) the basic national social security scheme,

(b) a trustee, pension fund manager; custodian, an employer or a corporate body.

183. Appointment of examiners

The Board may appoint its officers, agents or other qualified persons as examiners to discharge duties under this Act.

184. Power of examiners

(1) An examiner shall in the performance of functions under this Act

(a) inspect, examine or investigate the books, activities and affairs of a person or body dealing with pension fund;

(b) have access at any time during working hours to the books, accounts, documents and vouchers of a trustee, pension fund manager, custodian or any other person or corporate body that deals with pension fund;

(c) request from a director, manager, an officer of a trustee, a pension fund manager, custodian or firm, any information or explanation that the Board considers necessary to enable it determine whether or not the provisions of this Act or Regulations made under it are being complied with.

(2) In exercising its powers under subsection (1), the examiners shall exercise reasonable care to avoid undue hindrance in the day-to-day activities of a trustee, pension fund manager, custodian or any other person or corporate body.

185. Reports of the Board

(1) The Board shall forward a copy of its report to the trustee, pension fund manager or custodian or any other person or body corporate, on completion of an examination or investigation, and instruct that the report be placed before the governing board of the trustee, pension fund manager, custodian or any other person or corporate body.

(2) The governing body of the trustee, pension fund manager, custodian or any other body corporate shall, within thirty days after receipt of the report convene an extraordinary meeting to consider the report and submit its reactions and proposals for implementing any recommendations to the Board.

(3) A trustee, pension fund manager, custodian or a person or corporate body who fails to comply with the provisions of subsection (2) commits an offence and is liable on summary conviction to a fine of not more than fifty penalty units for each day that the offence continues.

(4) Where the offence continues for more than thirty days, the Board may, suspend the licence or certificate of registration of the trustee, pension fund manager or custodian in addition to the fine.

186. Power of the Board to order a special examination

The Board may order a special examination or investigation of the books and affairs of a trustee, pension fund manager or custodian where it suspects or is satisfied that

(a) it is in the public interest to do so;

(b) the trustee, pension fund manager or custodian

(i) has been conducting its business in a manner detrimental to the interest of beneficiaries of the scheme;

(ii) does not have sufficient assets to cover its liabilities; or

(iii) has contravened a provision of this Act,

(c) an application has been made to the Board by

(i) a director, manager or shareholder of the trustee or the pension fund manager or custodian to examine its company;

(ii) a beneficiary of an occupational pension scheme or provident fund or personal pension scheme;

(iii) a trustee or a pension fund manager to examine the custodian of the pension fund assets that the trustee or pension fund manager is managing; or

(iv) a custodian to examine the trustee for whom it is holding pension fund assets.

187. Power of the Board to gather information

(1) The Board shall in the performance of its functions under this Act or any other enactment, request by notice that

(a) an employer,

(b) trustee, pension fund manager or custodian; or

(c) any other service provider or institution connected with pension matters; submit specified documentation information in relation to its activities after giving reasonable notice to that person.

(2) The Board shall specify the place and period within which the information or documents are to be submitted.

188. Search warrant

(1) A magistrate may issue a search warrant where the magistrate is satisfied on reasonable grounds and on information on oath or affirmation given on behalf of the Board that there are grounds to believe that

(a) a person has failed to comply with a request of the Board within the time period specified in the notice and that required document and information has not been given to the Board;

(b) there are documents or information required in respect of which a notice has been issued by the Board but that person may not comply with the notice, or may remove, tamper or destroy the documents or information requested for by the Board; or

(c) an offence has been, or is being committed by a person, and that there are documents or information, which may be removed, tampered with or destroyed in relation to the offence.

(2) A warrant issued under subsection (1) shall authorise a named representative of the Board, in addition to a police officer and any other person named in the warrant to

(a) enter the premises specified in the warrant at a reasonable time within seven days from the date of the warrant,

(b) search the premises and take possession of any document or information that appears to be document or information of a type in respect of which the warrant was issued or take step necessary for preserving or preventing interference with the document or information;

(c) take copies of, or extracts from a document or information that appear to be of a type in respect of which the warrant was issued,

(d) require a person on the premises to provide an explanation in relation to a document or information that appears to be of a type in respect of which the warrant is issued or state where the document or information may be found; and

(e) use reasonable force that may be necessary to retain possession of a document unless the Court orders otherwise.

(3) Except as provided by a Court, where the Board takes possession of a document, it shall retain it for a period of three months but where proceedings for a criminal offence is commenced against a person, the document shall be retained until the conclusion of the proceedings.

Disclosure of Information
189. Privileged document and information

(1) A person is not required to disclose information or produce a document if the information or document is a privileged matter in accordance with the rules of privilege in legal proceedings.

(2) For the purpose of this section, information is privileged if it is communicated to a lawyer by

(a) a client or a representative of the client for the purpose of receiving legal advice,

(b) a person or a representative of that person to seek legal advice from a lawyer, or

(c) a person in contemplation of or in connection with legal proceedings.

(3) Information is not privileged if it is communicated or given with a view to furthering a criminal purpose.

(4) Despite subsection (1), a lawyer may be required under this Act to provide the name and address of a client where necessary.

190. Supply of information and documents to foreign regulatory authorities

(1) A foreign regulatory authority may request the Board in writing to provide it with assistance in connection with the exercise of its regulatory functions.

(2) The Board may disclose information or provide documentation in its possession to the foreign regulatory authority in accordance with this section.

(3) The Board shall not issue a notice to disclose information or provide documentation to a foreign
regulatory authority unless it is satisfied that the information or documentation to which the request relates is reasonably required by the foreign regulatory authority for the purposes of its regulatory functions.

(4) The Board may for the purposes of this section take into account, in particular

(a) whether reciprocal treatment would be given to the Board in the country or territory of the foreign regulatory authority;

(b) whether the request relates to the breach of a law or other requirement which does not have a corollary in this country or involves the assertion of a jurisdiction not recognised by the country;

(c) the seriousness of the case and its importance to persons in this country; and

(d) whether it is otherwise appropriate in the public interest to provide the assistance sought.

(5) For the purpose of subsection (4) (a), the Board may request the foreign regulatory authority, making the request to give a written undertaking, to give reciprocal treatment to the Board.

(6) Where a foreign regulatory authority fails to comply with a requirement of the Board the Board may refuse to provide the assistance sought by the foreign regulatory authority.

(7) The Board may refuse a request from a foreign regulatory authority if

(a) it is satisfied that information given to the foreign regulatory authority will be used in criminal proceedings against the person giving the information, other than proceedings for an offence under this Act or for an offence of perjury or a similar offence; and

(b) the foreign regulatory authority undertakes to contribute towards the cost of exercising the powers of the Board where the Board considers it appropriate.

(8) The Board shall not exercise its powers under subsection (1) unless it is satisfied that the information or documentation provided to the foreign regulatory authority is not subject to privileges under this Act.

191. Publishing of reports

(1) The Board may publish in a form and manner that it considers fit, reports and-results of an investigation.

(2) For the purpose of the law of defamation, the publication of any matter by the Board shall be absolutely privileged.

192. Register of schemes

(1) The Board shall compile and maintain a register of registered occupational pension schemes, provident fund schemes and personal pension schemes.

(2) In respect of each registered scheme, the Board shall record in the register the registered information most recently provided to the Board in respect of the scheme.

(3) Where a scheme has been a registered scheme, but has been, or is treated as being wound up, or ceased to be a registered scheme, the Board shall maintain the most recent information in the register in respect of that scheme.

(4) Information in the register shall be recorded in a manner that the Board considers appropriate including, the use of a device or facility that

(a) records or stores information in magnetic electronic form; and

(b) permits the information to be inspected or reproduced in legible and useable form.

193. Inspection of registers and information

(1) Subject to subsection (2), a person is entitled to

(a) inspect the registers and records kept by the Board that are designated as public records, and

(b) request the Board to give a copy or certified copy of the report, or extract from a document that the person is entitled to inspect on payment of the prescribed fee.

(2) In respect of documents filed or kept in electronic form, the rights granted under subsection (1) extend only to reproductions of those documents in useable written form produced in the manner that the Board considers appropriate.

(3) A copy or reproduction of or extracts from a document or record kept and certified by the Board is admissible in evidence in legal proceedings to the same extent as the original document.

194. Electronic filing of documents

(1) The Board may by Regulations provide for a system to enable documents required or permitted to be filed with the Board under this Act to be filed in electronic form.

(2) A system for the filing of documents in electronic form shall provide for the

(a) criteria for authorising persons to file documents in electronic form, and

(b) security and authentication of the documents filed.

Offences, Penalties and Enforcement
195. Misappropriation of pension funds

(1) A trustee, pension fund manager, custodian or director who misappropriates pension funds commits an offence and is liable on summary conviction to a fine of an amount equal to three times the amount misappropriated or to imprisonment for a term of not less than ten years or to both the fine and imprisonment.

(2) A director or officer of a trustee, pension fund manager or custodian is personally liable for any offence committed under this Act.

196. Offences relating to fraud

A  trustee,  pension  fund  manager  or  a  custodian  who  fails  to  comply  with  section  170  commits  an offence  and  is  liable  on  summary  conviction  to  a  fine  of  two  thousand  penalty  units  or  term  of imprisonment of not more than two years or to both.

197. Power of the Board to apply additional sanctions

(1) Despite any other law and without limiting the penalties stipulated under this Act, the Board shall, remove from office a director or officer of a trustee, pension fund manager or custodian who contravenes section 170 of this Act in addition to the penalties stipulated under this Act.

(2) The Board may exercise the power conferred on it under subsection (1) in cases of misconduct or dishonesty.

198. Offence by body corporate

Where  an  offence  under  this  Act  is  committed  by  a  body  corporate,  the  body  corporate  and  each director or officer is deemed to have committed that offence and shall be prosecuted but a person shall not be deemed to be guilty of the offence if the person proves that the offence was committed without that persons knowledge or that that person exercised due diligence to prevent the commission of the offence.

199. Penalty for refusing to give information

An employer, trustee, pension fund manager, custodian or a person or body corporate who

(a) refuses to produce any book, accounts, document or voucher,

(b) refuses to give information or explanation, or

(c) with intent to defraud produces a book, accounts, documents or voucher or gives information or explanation which is false or misleading commits an offence and is liable on summary conviction to a fine of not more than two hundred and fifty penalty units or a term of imprisonment not exceeding six months or to both.

200. General penalty

A  person  who  contravenes  a  provision  of  this  Act  for  which  a  penalty  is  not  provided  is  liable  on summary conviction to a fine of not more than one thousand penalty units or to a term of imprisonment of not less than one year or to both.

201. Order to comply

Where a person is convicted of an offence under this Act or the Regulations, the Court may order that person  to  comply  with  the  provision  of  this  Act  or  the  Regulations  for  which  that  person  has  been convicted in addition to any punishment it may impose.

Dispute Resolution
202. Resolution of disputes

(1) An employee or beneficiary of a scheme who is dissatisfied with a decision of the trustee, pension fund manager or custodian may request the Board in writing to review the decision in accordance with this Act or any Regulations made under this Act.

(2) A copy of each request shall be served on the relevant trustee, pension fund manager or custodian.

(3) The Board in exercising powers under this section shall,

(a) conduct proceedings in a manner that avoids delays in the resolution of disputes, and

(b) dispose of any matter before it within three months from the date of receipt of the request.

203. Aggrieved persons – dispute settlement

A person aggrieved by an action or a decision of the Board may refer the matter for settlement through an appropriate dispute resolution mechanism.

204. Effect of settlement

A  settlement  agreed  to  by  the  parties  under  this  Act  is  binding  on  them  and  is  enforceable  by  the Courts.

205. Pensions Adjudication Committee

(1) There is established by this Act a Pensions Adjudication Committee referred to as the Adjudication Committee.

(2) The Pensions Adjudication Committee consists of seven members, three of whom shall constitute a panel for the determination of a petition or a complaint.

(3) The object of the Adjudication Committee is to hear and determine a petition or complaint made by a member of a scheme regulated by the Board or referred to it by the Board or, by a Scheme.

(4) A petition or complaint includes

(a) denial or refusal of a benefit,

(b) quality or quantity of benefit,

(c) wrong computation of benefit,

(d) unreasonable delay in the processing and payment of benefits, and

(e) any other related matters.

(5) The Adjudication Committee shall determine complaints before it in accordance with rules that may be made by the Board with the approval of the Minister.

206. General indemnity

The  Board,  a  member  of  the  Board,  employee  or  agent  of  the  Board  is  not  liable  for  acts  done  or omitted in the discharge of a duty, the exercise of a power or the performance of a function under this Act or any other enactment that assigns functions to the Board if the act or omission was done in good faith.

Miscellaneous Provisions
207. Regulations

(1) The Minister, on the recommendations of the Board may, by legislative instrument, make regulations for the effective implementation of this Act.

(2) Without limiting the scope of subsection (1) the Minister shall make regulations to

(a) provide for approved trustees and applicants for approval to give undertaking to the Board and to enter into arrangements to provide insurance against the risk of loss through malfeasance or other illegal conduct;

(b) require approved trustees of registered schemes to provide information to scheme members and prescribe the kind of information that is to be provided to them;

(c) provide for the payment of accrued benefits to or in respect of scheme members and the transfer of accrued benefits from one registered scheme to another or from one account in a registered scheme to another;

(d) provide for the preservation of the accrued benefits of scheme members until the occurrence of a specified event including, but not limited to, the retirement, death or total incapacity of scheme members;

(e) provide for the formulation of proper accounting systems including the keeping of proper accounting records as regards registered schemes;

(f ) prescribe requirements for trustees with respect to the keeping of scheme members’ accounts;

(g) permit trustees to deduct fees for administrative expenses from scheme members’ accounts;

(h) provide for the auditing of the accounting records and financial statements of approved trustees and registered schemes;

(i) prescribe the duties of auditors including the duty to report on specified matters to the Board in specified circumstances;

(j ) provide for the engagement or appointment of service providers by the approved trustee of a registered scheme to provide services for the purpose of the scheme and for the delegation of the trustee’s functions in relation to the scheme to the service provider;

(k) prescribe the duties of service providers and other persons engaged or appointed by the approved trustee of a registered scheme to provide services for the purpose of the scheme including the duty to report on specified matters to the Board;

(l) provide for requirements to be complied with in respect of funds of registered schemes, including

(i) the separation of the funds and other assets of a registered scheme from other funds and assets that are beneficially owned by employers who are participating in the scheme;

(ii) the application of funds and other assets of a registered scheme only for the purpose of the scheme; and

(iii) rules that the funds and assets of a registered scheme shall not subject to any charge, pledge, lien, mortgage or other encumbrance, except in circumstances specified in the rules of the scheme or by the Board,

(m) require approved trustee and delegate investment management of scheme funds to independent pension fund managers registered with the Board;

(n) provide for arrangements for approved trustees of registered schemes in respect of scheme assets to be held by custodians and the qualifications of custodians;

(o) provide for approved trustees of registered schemes to maintain specific internal control procedures for the schemes;

(p ) require persons to lodge returns with the Board containing specified kinds of information, relevant to the performance of the functions of the Board;

(q) provide for

(i) the service or notification of documents;

(ii) the voluntary winding-p of employer sponsored schemes, and

(iii) other matters that are incidental to the achievement of the objects of this Act.

(3) A regulation made under this Act may

(a) apply generally or be limited in application by reference to specified exceptions or factors;

(b) apply differently according to different factors of a specified kind;

(c) authorise any matter or thing to be determined, applied or regulated by a specified person;

(d) prescribe fees including fees for the granting of approvals for the purposes·of this Act;

(e) authorise the Board to charge for a service provided by the Board on a cost recovery basis;

(f ) apply, adopt or incorporate by reference, with or without modifications, any publication, either in force at the time of publication or as in force from time to time;

(g) prescribe offences in respect of contraventions of the regulations;

(h) provide for the imposition of a fine.

(4) Despite the Statutory Instruments Act, 1959 (No. 52) the penalty for the contravention of Regulations shall be a fine of not more than two thousand, five hundred penalty units.

208. Operating guidelines and codes of practice

(1) The Board may issue guidelines for the purpose of giving guidance to

(a) approved trustees,

(b) pension fund managers,

(c) custodians,

(d) other service providers,

(e) the basic national social security scheme,

(f ) the Controller and Accountant-General Department, and

(g) participating employers and their workers, self-employed persons, and other persons concerned with this Act.

(2) A guideline may

(a) consist of a code, standard, rule, specification or provision related to occupational pensions, provident fund or personal pension schemes or a class of these schemes;

(b) apply, incorporate or refer to a published or amended document in force, and

(c) require persons including persons belonging to a class to give specified information or documents to the Board.

(3) The Board shall publish the guidelines in the Gazette or in another print media determined by the Board.

(4) Where the Board amends or revokes a guideline, it shall publish it in the Gazette or in another print media determined by the Board.

(5) A person shall not incur a civil or criminal liability for the contravention of a guideline issued under this section.

(6) Despite subsection (5) the Board may impose the following sanctions for deliberate refusal to apply the guidelines:

(a) imposition of a fine;

(b) suspension or revocation of a licence;

(c) suspension or cancellation of registration; or

(d) other sanctions determined by the Board.

(7) In any legal proceedings, where the Court is satisfied that a guideline is relevant to the determination of a matter

(a) the guideline shall be admissible in evidence, and

(b) proof as to whether or not a person contravened a guideline may be relied on by any party to the proceedings to establish or negate the matter.

209. Exemption of pension funds from attachment and liquidation process

(1) Despite the provisions of any other enactment, pension funds or assets kept with a custodian under this Act shall not be used for the payment of claims of a custodian’s creditors in the event of liquidation of the custodian.

(2) In the case of winding-up, liquidation or cessation of business of the custodian or any or all of its shareholders, the pension funds or assets in the custody of the custodian shall not be seized or be subject to execution of a judgment debt or from transfer to another custodian.

210. Act 592 amended

Section 60 subsections (3), (4) and (5) of the Internal Revenue Act, 2000 (Act 592) is hereby amended to reflect the new contribution rates imposed under section 3 of this Act.

211. Interpretations

In this Act, unless the context otherwise requires

accounting records” includes books, vouchers, invoices, receipts, orders for the payment of money, bills of exchange, cheques, promissory notes and such working papers and other documents that are necessary to explain the methods and calculations by which accounts are made up and other documents as may be prescribed;

accrued benefits” in relation to a registered scheme, means the amount of each scheme member’s beneficial interest in the registered scheme at any time, including sums derived from the contributions made by or in respect of that scheme member, together with the income or profits arising from any investments thereof, but taking into account any losses in respect thereof;

active member” means a member of a pension scheme who is currently accruing benefits under that scheme in respect of current service;

actuary” means a person professionally trained in the technical and mathematical aspects of insurance, pensions and related fields and who estimates how much money must be contributed to a pension fund each year in order to provide the benefits that will become payable in the future;

annual report” means the method by which the trustees of a pension scheme communicate financial and other information about the scheme to members, employers and other interested parties. It is used in particular to describe the specific information which is required to be made available by trustees in relation to each scheme year under the Disclosure Regulations and must include a copy of the audited accounts and of the latest actuarial statement and other information specified including a financial review by the trustees and an investment report. It may contain additional information not required by the regulations;

annuity” means a series of payments, which may be subject to increases, made at stated intervals
until a particular event occurs. This event is most commonly the end of a specified period or the death of the person receiving the annuity;

approved trustees” means a company or an individual approved by the Board as a trustee in accordance with this Act and, when used in relation to a registered scheme that is administered by two or more approved trustees, it means the trustees jointly and severally;

Authority” means the National Pensions Regulatory Authority established under section 5 of this
Act;

beneficiary” means a person entitled to benefit under a pension scheme or who will become entitled on the happening of a specified event;

Board” means the governing body of the Authority established under section 8 of this Act;

Board of Trustees” means the governing body of the Trust established under section 35 of this
Act;

Cap. 30 Pension Scheme” means a pension scheme operated under the Pensions Ordinance No. 42, Chapter 30 of 1950, for

(a) pensionable public servants in the civil and other public services, who have been in the service before 1st January, 1972; and

(b) public servants who have been exempted by law from participation in the Social Security Pension Scheme, i.e. the Judiciary, Legal Service, Police Service, Fire Service, Prison Service, Immigration Service, the Bureau of National Investigation and the Research Unit of the Ministry of Foreign Affairs;

contributory scheme” means a scheme to which both employers and employees contribute. Under certain contributory plans participants may be required to contribute as condition of eligibility;

Chief Executive” means the Chief Executive Officer of the Authority appointed under section 16 (1);

corporate trustee” means a company which acts as a trustee;

custodian” means a person whose business it is to keep custody of cash, securities and documents of title to assets belonging to others;

defined benefit scheme” means a pension scheme providing a defined benefit formula for calculating benefit amounts without regard to contributions;

defined contribution scheme” means a pension scheme in which the contributions are made to an individual account for each participant. The retirement benefit is dependent upon the investment
experience and in the case of profit sharing plans, amounts which may be allocated to the amount owing to forfeitures by terminating employees;

death benefit” means benefit payable to the spouse or dependants of a deceased scheme member, or to that member’s estate, on death in service or after retirement. It may consist of a lump sum, a return of contributions or a pension;

“dependants” include

(a) members of the family of a member as specified in the Schedule, and

(b) other persons who the member is obliged to maintain under the Children’s Act, 1998 (Act 560) or otherwise and who were dependent on the earnings of the member at the time of death of the member;

early retirement age” means an age defined by the terms of a pension plan which is earlier than normal retirement age, at which a participant may receive an immediate, possibly reduced, pension under the plan;

eligibility” means the conditions which must be met for a person to be a member of a scheme or to receive a particular benefit and may relate to age, service, status and type of employment;

employer” means

(a) the owner of an establishment or the person who, or the Board which, has the ultimate control over the affairs of the establishment, and where such-affairs are entrusted to a manager, managing director or managing agent, such manager, director or agent;

(b) in any other case, the person with whom the worker entered into a contract of service or apprenticeship and who is responsible for the payment of his salary;

employer sponsored scheme” means a single employer scheme whose membership is limited to the employees of the sponsoring company and only its associated companies;

establishment” means any office, shop, factory, mine, plantation, or any other place where persons are employed on salary for work or business of any kind;

existing scheme” means a private or company pension, provident fund, superannuation scheme or gratuity scheme set up in respect of employees;

fiduciary duties” means duties owed by one person to another to whom the first person the fiduciary, stands in a position of trust. The fiduciary is not permitted to profit from the fiduciary’s position and owes undivided loyalty to the other party and must avoid conflicts of interest unless otherwise authorised by the other party after full disclosure;

formal sector” means business units which are incorporated or registered, and are normally subjected to regulation;

funding” means a systematic program under which contributions are made into a pension fund and assets accumulated in order to pay pension benefits;

fund manager” means an individual or body to which the investment of the whole or part of the assets is delegated by the trustees in accordance with the provisions of the scheme documentation;

group personal pension scheme” means an arrangement made for the employees of a particular employer to participate in a personal pension scheme on a grouped basis not a separate scheme; merely a collecting arrangement;

independent trustee” means an individual or corporate body with no direct or indirect involvement with the pension scheme, sponsoring employer, or members, other than performing the duties of the trustee;

informal sector” refers to production units which are engaged in legitimate economic transactions and are normally operated at a low level of organisation, with little or no division between labour and capital which operates on a small scale;

interim trust deed” means a form of trust deed commonly used to establish a pension scheme on broadly stated terms leaving the detailed provisions and the rules to be provided later by a definitive trust deed;

investment” means the process by which contributions and net income are used to increase the value of pension fund assets by means of cash deposits, the purchase and sale of equities, fixed interest stocks, bonds, property and other authorised investments;

investment policy” means the periodic decisions regarding the types and proportions of assets in which a pension fund is invested;

liabilities” means amounts which a pension scheme has an obligation to pay now or in the future. The amounts may not be immediately ascertainable and some liabilities may be dependent on the occurrence of future events;

master trust scheme” is a multiple-employer scheme whose membership is open to employees of more than one employer, self-employed persons and persons with accrued benefits transferred from other schemes;

member” means a person who has been admitted to membership of a pension scheme and is entitled to benefit under the scheme;

Minister” means the Minister responsible for Pensions;

non-contributory pension scheme” means a scheme in which the employer pays the entire cost of the pension, with the employee not contributing;

normal retirement age” means the age, as established by a pension scheme, when full benefits can be received;

notice” means notice in writing;

occupational pension scheme” means a pension scheme offered through an individual’s employment to private or public sector workers. Benefits are generally paid as lump sum, but could also be paid as an annuity or a combination of lump sum and annuity;

organised labour” means an association or union formed by workers the principal purpose of which is to promote their economic and social interest and which is registered under the Labour Act, 2003 (Act 651);

past service” means service before a given date or service before entry into the pension scheme;

past service benefit” means a benefit granted for past service;

pension fund assets” means assets which collectively constitute a pension fund;

pension fund” means an investment fund within the pension scheme which is intended to accumulate during an individual working life from contributions and investment income, with the intention of providing income in retirement from the purchase of an annuity or in the form of a programmed withdrawal, with the possible option of an additional tax free cash lump sum being paid to the individual;

pension scheme” means an employee benefit scheme which provides retirement benefits by theestablishment of a trust fund or the purchase of insurance or annuity contracts or a combination of both and benefits may be paid either as an annuity or as a lump sum;

“pensioner” means a person who is currently receiving a pension from a pension scheme;

“premises” includes a vehicle, vessel or aircraft;

“prescribe” means prescribed by regulations made under this Act;

“preserved benefits” means benefits arising on an individual ceasing to be an active member of a pension scheme, payable at a later date;

“President” means the President of the Republic of Ghana;

“private pension scheme” means pension schemes established by private in contrast to governmental agencies, including commercial, industrial, labour and service organisations, non-profit organisations, and non-profit religious, educational, and charitable institutions;

“provident fund” means a fully funded, defined contribution scheme in which funds are managed
privately and benefits paid as lump sum to the employee or his dependants in case of death. In some cases it is possible for the employee to draw income prior to retirement to meet specific needs;

“retirement” means the attainment of the statutory retirement age, or on voluntary retirement;

“registered scheme” means an occupational pension scheme or provident fund scheme registered
under section 131 as an employer sponsored scheme or a master trust scheme or registered under section 137 as personal pension scheme;

“salary” includes the emoluments which are earned by a worker while on duty in accordance with the express or implied terms of the contract of employment or apprenticeship, and which are paid or payable in cash to the worker at fixed or determinable intervals of time

(a) in respect of normal periods of work to be performed by the worker;

(b) where payment is calculated in relation to set tasks, in respect of the number of tasks completed by the worker; and

(c) where payment is calculated in relation to the volume of work done, in respect of the volume completed by the worker, emoluments earned by the worker or leave, any cost of living for prescribed allowance but does not include any presents made by the employer, value of any food concession, house rent allowances, overtime allowance, travelling allowance, bonus, commission, or any other similar allowance payable to the worker;

“Scheme” means the Contributory Three-tier Pension Scheme established under section 1 of this Act;

“scheme member” in relation to a registered scheme, means a person who has a beneficial interest in the registered scheme;

“Security and Exchange Board” means the Securities and Exchange Agency established under section 1 of the [Securities Industry Law, 2016 (Act 929)];

“self-employed person” means a person who has no other employer but himself or herself and works on his or her own account or with others;

“service provider” in relation to an occupational pension scheme or provident fund scheme, includes an investment manager, custodian of scheme assets or other person appointed or engaged by the trustee of the scheme to provide services for the purpose of the scheme, and a person to whom the provision of those services is delegated by the manager, custodian or other person, but does not include a person appointed or engaged as an auditor, solicitor or actuary;

“Trust” means the Social Security and National Insurance Trust established under section 32 of this Act;

“trust deed” means a legal document, executed in the form of a deed, which establishes, regulates or amends a trust;

“trustee” means an individual or company appointed to carry out the purposes of a trust in accordance with the provisions of the trust instrument and general principles of trust law;

“trustee report” means a report by the trustees describing various aspects of a pension scheme and it may form part of the annual report;

“vesting” means the right of an employee to the benefits that the employee has accrued, or some portion of them, even if employment under the plan terminates. An employee who has met the vesting requirements of a pension plan is said to have a vested right;

“voluntary contribution” means a contribution paid to a registered scheme in accordance with this Act; and

“worker” includes a person who is employed for salary in any kind of work, manual or otherwise, in or in connection with the work of an establishment, and who gets his salary, directly or indirectly from the employer, and any person employed by or through a contractor in or in connection with the normal work of the establishment, who is

(a) employed in this country but not as a member of the crew of any ship; or

(b) employed as a permanent resident of Ghana,

(i) as a member of the crew of a ship, the owners of which have an office or agents in
Ghana; or

(ii) outside Ghana but employed by an employer in Ghana.

212. Repeal and savings

(1) The following enactments are hereby repealed:

(a) Social Security Act. 1991 (P.N.D.C.L. 247);

(b) Long-Term Savings Act, 2004 ((Act 679)):

(2) The repeal of the enactments shall not affect any additional fringe benefits, other than pension and gratuity enjoyable upon retirement by a person before the commencement of this Act except as provided by this Act.

(3) Despite the repeal of the regulations, by-laws, notices, orders, directions, appointments or any other act lawfully made or done under the repealed enactment and in force immediately before the commencement of this Act shall be considered to have been made or done under this Act and shall continue to have effect until reviewed, cancelled or terminated.

(4) The assets, rights, obligations and liabilities existing under the Social Security Act, 1991 (P.N.D.C.L. 247) are herby transferred to the Trust.

Transitional Provisions
213. Enactments applicable for four years

(1) The following enactments and schemes shall on the commencement of this Act apply for a transitional period of four years and cease to be in force after that period

(a) the Pensions Ordinance No. 42 of 1950 (Cap. 30) as amended;

(b) Teachers Pension Ordinance 1955 as amended;

(c) Ghana Universities Staff Superannuation Scheme;

(d) Ghana Police Pensions Act, 1985 (P.N.D.C.L. 126.);

(e) Public Legal Officers Pensions Amendment Act 1986 (P.N.D.C.L. 165.);

(f ) Immigration Service Pensions Act 1986 (P.N.D.C.L. 226);

(g) Prisons Services Pensions Act 1987 (P.N.D.C.L. 168);

(h) section 34 of the Security and Intelligence Agencies Act 1996 (Act 526) and

(i) section 27 of the National Fire Service Act, 2000 (Act 537).

(2) The Board shall, ensure that the pension schemes in the country are unified in accordance with regulations made under this Act within five years after the commencement of this Act.

214. Payment of Pension Benefits Under the Cap. 30 Scheme

The Controller and Accountant-General’s Department shall continue to

(a) administer the Cap. 30 and other related schemes;

(b) pay gratuity and pension to the existing pensioners and the category of officers exempted under section 31 of this Act; and

(c) pay monthly pension to retired public servants at present under Cap. 30 scheme, in accordance with the relevant and applicable computations under the existing Cap. 30 pension scheme of the Public Service.

215. Death of exempt officers

Where an officer exempted under  section 31 of this Act or a public servant presently under Cap. 30

scheme  dies  while  in  service  or  in  the  course  of  duty,  the  Controller  and  Accountant-General’s Department shall pay to the next-of-kin or designated survivors a gratuity and pension benefit based on the income of the deceased spouse.

216. Option for active public servants under Cap. 30 and other related schemes

Any person at present under the Cap. 30 and other related schemes and in active service shall within four years of coming into force of this Act have the option to join the new scheme.

217. Decentralisation of public sector pension management

On the commencement of this Act, the administration and management of the Cap. 30 pension scheme shall be decentralised and there shall be regulations to this effect.

218. Temporary pension fund account

(1) From the commencement of this Act and before the licensing or registration of trustees, pension fund managers and custodians, every employer to whom this Act applies shall open a temporary Occupational Pension Fund Account with the Bank of Ghana.

(2) Subject to section 3 (1), (2) and (3) of this Act, the five per centum remittance to the second tiermandatory occupational pension scheme on behalf of the employee shall be lodged with the Bank of Ghana pending the licensing of trustees, pension fund managers and custodians.

(3) Every employer shall maintain proper books of accounts and records of contributions made under this Act.

(4) The Board shall within ninety days of licensing or registration of trustees, pension fund managers and custodians compute and transfer all contributions and returns to the credit of the Occupational Pension Fund Account opened with the chosen trustees licensed by the Board.

219. Accrued retirement benefits rights

(1) Subject to section 213 of this Act, the retirement benefits in respect of accrued or past service earned by an employee shall be computed in accordance with the terms of conditions of service existing before the commencement of this Act.

(2) Each employee shall be issued with a Ghana Government Retirement Bond equivalent to the total retirement benefit that was due the employee as computed at the commencement of this Act.

(3) The Bank of Ghana shall establish a Retirement Benefit Bond Redemption Fund referred to as the “Redemption Fund” account into which the Government shall make periodic payments.

(4) The amount in the Redemption Fund shall be used by the Bank of Ghana to redeem any retirement benefit bonds issued.

(5) Payments into the Redemption Fund shall cease after the retirement benefit bonds issued under subsection (2) have been redeemed.

(6) On retirement of an employee

(i) the retirement benefits bond shall be redeemed by the Bank of Ghana from the redemption fund account;

(ii) the proceeds of the bond redeemed shall be transferred to the credit of the retirement savings account of the employee; and

(iii) the employee shall utilise a percentage, to be prescribed by the Board, of the balance standing to the credit of the employee’s retirement savings account to purchase an annuity for life from a life insurance company licensed by the National Insurance Commission with monthly or quarterly payments.

220. Enactments inconsistent with this Act

On the commencement of this Act where an enactment relating to pensions is inconsistent with this Act, this Act shall to the extent of the inconsistency prevail.

221. Directives to Pensions Reform Implementation Committee by Minister

Until the appointment of the Board of the Authority, the Minister may in writing direct the Pension

Reform Implementation Committee, appointed for the implementation of the pension reforms, to perform functions of the Authority considered necessary for the effective implementation of the provisions of this Act.

Schedule

[Section 213]

Paternal System                                     Maternal System

Mother, Father                                                    Mother, Father

Husband                                                             Husband

Wife, Son, Daughter                                           Wife, Son, Daughter

Brother, Sister                                                     Brother, Sister

Father’s father                                                    Mother’s mother

Father’s brother                                                  Mother’s brother

Mother’s sister

Sister’s son

Sister’s daughter

Mother’s sister’s son

Mother’s sister’s daughter

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