President John Evans Atta Mills on Wednesday launched a new National Pension Scheme that would cater for 85 per cent of workers in the informal sector, and enable workers' contributions to be used as collateral for home mortgaging.
Launching the scheme in Accra, President Mills reminded the administrators of the heavy responsibility to ensure its success, and urged them to publicise its activities to in the informal sector.
He said lessons from the global financial crisis should guide the release of funds for the new scheme.
President Mills commended members of the National Pension Reform Implementation Committee for their hardwork during the past five years.
Mr Stephen Amoanor Kwao, Minister of Employment and Social Welfare said the Ministry would provide the needed support and guidance to ensure that the fund was efficiently and effectively administered.
Mr Richard Kwame Asante, Chairman of the Pension Reform Implementation Committee, said the new scheme was a landmark in the economic and social development of Ghana.
He said the inputs were taken from identifiable groups such as the Ghana Employers Association, Veterans Association of Ghana, Ghana Private Transport Union, financial institutions, insurance companies and Social Security and National Insurance Trust (SSNIT).
It comprises two mandatory schemes and a voluntary scheme.
The first-tier mandatory basic National Social Security Scheme would incorporate an improved system of SSNIT benefits.
The second-tier scheme would be a mandatory fully funded and privately owned or work based pension scheme, designed primarily to give contributors higher lump sum benefits under the SSNIT or Cap 30 Pension Schemes.
The third-tier is a voluntary provident fund and personal pension schemes targeted at workers in the informal sector who want to make voluntary contributions to enhance their pension.
With contributions from the informal sector, farmers, fishermen, market women among others can now participate in the pension scheme during their old age.