Agona Swedru, Sept 26, GNA - Mr Smart Chigabatia, Administrator of the Pension Reform Implementation Committee (PRIC) said on Thursday that, the committee has recommended the creation of new contributory third-tier pension scheme to replace the existing one for the informal sector. He said provision has been made in the third-tier voluntary personal pension scheme to cater for the peculiar needs of workers in the sector of the economy, which covers about 80 percent of the working population. Mr Chigabatia announced this at a public forum organized by the Pension Reform Implementation Committee for the informal sector workers at Agona Swedru in the Central Region. He noted that the government accepted almost all the recommendations of the Commission set up for the new Pension Scheme and issued a White Paper in July, 2006 for implementation of the social insurance scheme for informal sector. Mr Chigabatia said the government also appointed an eight- Member Implementation Committee and a Consultant to implement the accepted recommendations.

He said the informal sector contributions would have two accounts, namely the retirement account to provide benefit on retirement and personal savings account with rules for withdrawals before retirement. Mr Chigabatia, who is also former Executive Secretary of the Civil Servants Association, said the contributors could access benefits before retirement from personal savings account for education and business enhancement. He said a lump sum payment would be made from the balance standing to the credit of the contributor's accrued benefits or personal savings account. Mr Daniel Aidoo Mensah, a Consultant, explained that a pension was a source of regular income to live on when one retires or can no longer work. He urged workers in the informal sector to save towards their pension, which was one of the most effective ways of having money to live on, after sixty years and above. Mr Seth Boadi, Deputy Agona West Municipal Coordinating Director urged workers of the informal sector to take advantage of the scheme and contribute to enable them to enjoy when they go on retirement. He said it was challenging for them to save money towards that, since they do not receive salaries every month, where it could be deducted at source, but urged them to strive hard and contribute to the scheme.