Informal sector urged to enrol on tier three pension

The Corporate Affairs Manager of the National Pensions Regulatory Authority, Mr Emmanuel Awuku Dagbanu has encouraged informal sector workers to enrol unto the new three tier pension scheme.

He said this would enable them to contribute towards their future to improve their standards of living.

He said it would also secure their financial autonomy and make them less dependent in their old age.

Mr Dagbanu was speaking on the theme: “Ensuring Retirement Income Security,” during the Eastern Regional Outreach Programme, to educate and sensitise self-employed on the Tier Three Pension Scheme in Koforidua.

Mr Dagbanu said since the Informal Sector constitutes about 80 per cent of Ghana’s economy, there is the need to institute the New Third Tier Pension Plan to cater for their peculiar needs as workers.

He added that no matter one’s nature of work, one could register and contribute any amount he or she could afford monthly, weekly or on regular basis.

Mr Dagbanu said persons in the informal sector who are not covered by the mandatory schemes shall have 35 per cent of their declared income exempt from tax for joining the scheme.

He assured contributors that they could access their benefits before retirement whenever they are in financial difficulty.

Mr Dagbanu said the Informal Sector workers could participate in the scheme under an organised group.

He said the scheme would soon introduce a technology whereby persons living with disability could send their contribution through mobile phones at the comfort of their homes.

Source: GNA