The Ministry of Tourism, Arts and Culture (MOTAC) organized a day’s workshop for Industry players and stakeholders in the creative economy dubbed “Pensions Conversation’’.
The event, which took place in Accra on Friday, November 4th, 2022, was aimed at sensitizing members of the Arts and Culture fraternity on the importance of enrolling on an insurance and pensions scheme.
Opening the session, Honourable Mark Okraku-Mantey, Deputy Minister for the Ministry of Tourism, Arts and Culture (MOTAC) said, the discussion on the Pensions scheme and Insurance for the stakeholders has been a very long-standing issue hence the government through the ministry had taken steps by bringing regulators of the sector together to educate members on which plans would meet their individual needs.
He added that so many people in the industry do not have insurance or pension savings which they can fall back on in times of difficulty, the situation he believed, is due to the informal nature of the creative sector.
He said the ministry faces the challenge of going to the aid of many aged members who became distressed with financial or medical issues later in life due to non-planning for such a future.
Considering bridging the gap on the lack of investment, the ministry had created the opportunity for people who have not made any provisions towards securing their future to start now.
“Nobody will feel your pain better than you do hence you have to decide how you would want to retire now” he stated.
The interactive workshop allowed patrons to ask questions after the speakers made presentations on Pensions, Insurance, and Investment in Banks.
Ms Afua Amankwa Sarkodie, Corporate Affairs Manager at the Social Security and Insurance Trust (SSNIT) said pension is a regular payment made during a person’s retirement or disability from an investment fund to which that person or the employer has contributed.
She stated that the new National Pension Scheme was instituted by the National Pensions Act, Act 766 which ensures that every Ghanaian worker receives retirement benefits as and when due.
She added that Act 766 which was passed on December 12th, 2008, mandated the establishment of a new contributory Three-Tier Pension Scheme with the National Pensions Regulatory Authority (NPRA) to oversee the efficient administration of the composite pension scheme
The First Tier is the Basic National Social Security Scheme for all workers in Ghana. It is a defined benefit scheme and mandatory for workers to have 13.5% contributions made on their behalf. The contribution is managed by SSNIT.
The Second Tier is a defined contributory Occupational Pension Scheme mandatory for workers with a 5% contribution made on behalf of members. The contribution is managed privately by approved Trustees.
The Third Tier which includes all Provident Funds and all other Pension Funds outside Tiers I and II is a voluntary scheme.
Ms Amankwa Sarkodie noted that the 3 –Tier scheme covers all workers in both the private and public sectors, it is optional for the self-employed.
She outlined the four (4) types of benefits under the SSNIT scheme that members can enjoy depending on which contingency has occurred including old age Pension, Invalidity Pension, Survivor’s Lump sum and Emigration benefit.
On the insurance aspect, patrons were educated on the various types of insurance Life Insurance and Funeral policy.
They were made aware of the benefit of Life Insurance as it provides financial support in the event of untimely death and acts as a long-term investment.
Insurance also provides the means to meet goals, be it children’s education, marriage, building a dream home or planning a relaxed retired life, according to your life stage.
The final lap of the workshop focused on Investment avenues and benefits of investment namely Making Money on Monies saved, Achieving Self-Determination and Independence, leaving a Legacy to Heirs and Supporting them which is paramount.
The presentations were done by SSNIT, Enterprise Insurance, OLAC Insurance and Standard Chartered Bank.
SOURCE: MOTAC PR