Fight over provident fund at Ghana Life Insurance

Business News of Tuesday, 9 April 2013

Source: The New Crusading Guide

Insurance Claims

Ghana Life Insurance Company, a member of the prestigious Ghana Club 100 is up in arms with its staff as management is accused of keeping workers’ Provident Fund against the new Pensions Act.

According to complaints received at our offices, the Management of Ghana Life has also violated the Act by refusing to appoint a Trustee to oversee the Provident Fund.

When this paper a couple of weeks ago contacted Kayode Ogunyinka, Head of Finance and Administration to ascertain the veracity of the allegations, he promised to get back since what he was hearing “was news” to him but as at going to press last night, he had not fulfilled his promise.

The News team then attempted to contact Ivan Avereyireh Abubakar who is the Managing Director to get an insight but all ended in futility.

Since the inception of the new Pensions Act 766, 2008, the old fund had been discarded yet the money in the previous fund had not been given back to the staff members without any stated reason, leaving room for speculations.

The Act enjoins Boards of various institutions to set up Trustees to manage the Provident Fund but such a body is non-existent at Ghana Life.

The new Act states that:

Trustees

120. “At the commencement of this Act, occupational pension schemes, provident fund schemes, personal pension schemes and other privately-managed pension schemes shall only be managed by trustees licensed approved by the Board.

Functions of a trustee

121. A trustee licensed under this Act shall, in addition to other duties imposed by a trust deed, perform the following functions:

(a) secure scheme registration;

(b) appoint pension fund managers, custodians and other service providers and ensure their compliance with regulatory requirements or guidelines; Act 766 National Pensions Act, 2008

(c) maintain investment policy statements and internal control procedures that may be prescribed by the Board;

(d) ensure that the investment of funds of the scheme is diversified to minimise investment risk;

(e) act as a provident trustee in financing relationship with its members;

(f) discharge the duties of a trustee;

(g) process transfer and payment requests as contained in the trust;

(h) keep proper accounting records and a members’ register;

(i) prepare and lodge annual audited financial statements, scheme and investment reports and other relevant records that the Board may require; and

(j) perform other functions as may be directed by the Board”

Please stay tuned as we bring you worries of policy holders on death claim settlements, SSNIT contributions by the company for its workers etc.

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