The ‘Penpamsea’ housing scheme has partnered with Hedge Pensions Trust to give members a minimum of 50,000 home loans to undertake building projects in stages.
The purpose is to reduce the housing burden for current and retired workers.
Speaking at the launch in Accra, Employment and Labor Relations Minister Ignatius Baffour-Awua said the scheme was the result of discussions between the government and trade unions under the Domestic Debt Exchange Program (DDEP).
He said investment opportunities for pension funds were now “flexible” and pension fund managers therefore needed to devise schemes that were beneficial to members.
He praised the work of CLOGSAG and the Hedge Pensions Trust, saying workers were demanding higher pay as they spend around a third of their income on rent and accommodation.
To this end, Baffoaua believed that the system would give civil servants “a place of trust” and help alleviate some of the demands that workers place on government.
He commended GCB Bank for participating in the scheme and urged the CLOGSAG leadership to carefully roll out the scheme so as not to negatively impact the financial situation of its members.
“One of the great things we have is that the total amount of pension funds as we speak is well over 40 billion cedis. So if all pension funds hedged today -If you’re doing something similar to Pensions Trusts, how many housing schemes do you have?’We’re going to involve them on a regular basis every year,” he said.
The minister advised potential beneficiaries to be objective and not to “rush” the scheme, saying it was well packaged.
CLOGSAG Secretary-General Isaac Banpo-Addo commends Hedge Pension for taking steps to “realize” the provisions under Articles 103 and 114 of the National Pensions Act 2008 (Act No. 766) did.
“Obtaining a primary residence is a process, not an event. Situations may arise where a donor needs assistance to complete a primary residence.
“There may also be situations where you need to acquire land to build your primary residence. Again, if a member is using the benefit to secure a mortgage or to purchase a primary residence. There may be situations where you can.
“It is in this context that loans will be provided under the Penpamshi Housing Scheme,” he said.
He said the scheme has been approved by the National Pensions Regulatory Authority (NPRA) and beneficiaries must be contributors to the CLOGSAG Fund and the Hedge Master Trust Occupational Pension Scheme (Tier 2).
Benjamin Otto, Managing Director of CLOGSAG, said the initiative offers beneficiaries the opportunity to start the process of owning their own primary residence and is open to all contributors to the Penpamsy Tier 3 pension fund. He said it was “good news.”
“Having a roof over workers’ heads is of paramount importance, especially when achieved through benefits in the third tier of pension schemes,” he said.
GCB Bank Custodian Kojo Nkwantabisa also commended CLOGSAG’s efforts and expressed the bank’s commitment to working with partners to realize the objectives of the scheme.
Mr. Osei Agyemang Boakye, Director of Compliance at NPRA, and Dr. Charles Kesey, Head of the Office of the Director of the Civil Service, commended the “sensible” move and urged efficient management of the fund to avoid bankruptcy. did.
Source: GNA