Gold Coast Securities Limited, an investment Advisor will today launch three of its products. These are the Pension Scheme, Asset Management and the Gold Fund.
The 2008 National Pensions Act 766 provides for a pension reform in Ghana that came into operation on January 1, 2010. As the National Pensions Regulatory Authority finalizes modalities for the transition to the new law, Gold Coast Securities Limited (GCS) is engaging potential clients for scheme registration and relationships to manage their pension fund portfolio.
As a leading investment firm, Gold Coast Securities has developed new investment products and services to maximize benefits of the new Pensions Law with the main objective of providing effective, value-added investment advisory services to its clients as well as advancing GCS as a premiere manager of pension funds.
The pension law changed because a governmental-commissioned study showed that the previous plans were unsustainable and easily manipulated (such as CAP 30 and End of Service Benefit). The new pension scheme is designed to offer retirement benefits to more Ghanaians, with more security, flexibility and control in how the funds are managed and distributed.
The old pension funds under the Social Security Act, 1991, are transferred to SSNIT. All other former public schemes will cease to be in force after four years from the start of this new Pension Act.
Private pension plans can continue to exist as before and may be transitioned in accordance with regulations made under the new Act in order to work under the new Law and Gold Coast Securities can assist companies in handling this transition process.
The three tiers divide the monetary contributions go. The 1st tier holds the mandatory contributions to SSNIT for national health insurance and monthly pension payments after retirement; the 2nd tier holds mandatory contributions to an individual’s personal retirement savings; the 3rd tier holds voluntary contributions to an individual’s personal retirement savings. Upon retirement, the 3rd tier is paid monthly, whereas the 2nd tier and 3rd tiers are paid in lump sum for those in the formal sector, and in an annuity for the informal sector.
Head of the GCS Pension Group, Nathaniel Fiagbenu, says the company is seeking to be registered as a Pension Fund Manager to assist organizations in investing pension funds for optimal returns.
In Mr. Fiagbenu’s estimation, that will help maintain and sustain good life for individuals, even during their retiring years.
The three-tier pension scheme includes a mandatory social security and occupational scheme and a third voluntary privately managed provident fund or group personal pension scheme. The Act aims to ensure that every Ghanaian worker, in both the formal and informal sectors, receive pension income upon retirement.
He notes: “The contributions are first collected by the employer and at the end of each month”. According to him, custodians of the pension scheme keep records of individual contributions and invest them as advised by the Trustees (representatives elected by the company)”.
A pension fund manager such as Gold Coast Securities, Mr. Fiagbenu explains advises Trustees where to invest collected monies, stating that “The Trustees, Fund Managers and Custodians are all independent parties with the Trustees not permitted to take direct possession of the funds”.
The new pension law states that every Ghanaian should benefit from a non-taxable pension scheme and this Mr. Fiagbenu asserts that “eligible Ghanaians would be cheating themselves if they refuse to contribute some part of their earnings to the new pension scheme”.
Under the act, both employees and employers contribute to the new pension scheme before taxes are calculated. This means that less tax is paid at the time of contribution. Additionally, the law exempts tax on all interest gained by pension funds and does not tax upon withdrawal of funds, within the rules of the Act.
Mandatory contributions of 5.5 % for employee and 13% for the employer are tax deductible under the 1st and 2nd Tiers. Voluntary contributions of up to 16.5 % are tax deductible for either the employer or employees under the 3rd Tier.
By the arrangement, the new pension scheme covers workers of both the formal and the informal sectors and offers an opportunity to convert existing schemes to meet the specifications and requirements of the new Pension Laws, the National Pensions Act, 2008 (Act 766). According to GCS, it is advisable to encourage all workers to contribute towards their future through the new pension scheme. “GCS is thus entreating all Ghanaians to register with the GCS 3-Tier pension scheme for a better and more reliable future”, Mr. Fiagbenu declares.
Managing ones financial affairs is complex and time – consuming, and too important to leave to chance. In fulfilling this role, Gold Coast Securities (GCS) Company Limited assumes responsibility for coordinating and managing our clients evolving financial and personal needs from saving and investments, retirement planning, insurance and to tax.
For this reason, the company’s Assets Manager, Kwaku Fredua-Agyeman says they have developed a comprehensive investment advisory service aimed at creating values for our clients.
He talks about people or clients need Private Assets Manager: “An asset Manager is needed to identify which Assets will be suitable for you based on your objectives, age and other factors; ensures that one minimizes the total risk associated with one’ total investments without necessarily compromising one’s ability to enjoy high returns”.
He asserts that an Assets Manager provides the requisite in-depth and specialized knowledge and skill needed for the management and administration of funds; monitor and evaluate funds since clients may not have the time and / or expertise to do so and further discloses that ‘all portfolios require time and efforts to manage”.
Gold Coast Securities is licensed as a corporation by the Securities Exchange Commission (SEC) under the Securities Industries Act 1993 with its registration as Pension Fund Manager still under consideration. It was established on August 16th, 1993.
Gold Coast is licensed by the Bank of Ghana (BoG) as Authorized Primary Dealer in Government of Ghana Treasury Bills; licensed by Ghana Stock Exchange (GSE) as its 4th authorized licensed dealing member on October 21st 1993 and also licensed by the Securities and Exchange Commission as a Professional Investment Manager.
The company however started operations on March 15th 1994 and participated in both domestic and international selling groups of $478m Global Equity Offering for AGC and again selected as the broker for ¢12 billion AGC share offer to Ghana Government employees.
