Teachers Provident Fund Scheme

What is Teachers' Provident Fund Scheme (TPFS)?

The Teachers’ Provident Fund Scheme (TPFS) is a voluntary personal pension scheme that is sponsored by GLICO Pensions Trustee Ltd. (GLICO Pensions).

The scheme is designed in line with the National Pensions Act,2008 (Act 766) and is duly Registered by the National Pensions Regulatory Authority (NPRA).

What are the objectives of Scheme?

a) To provide supplementary pension benefits to enhance the retirement income security of teachers.

b) To provide teachers in educational institutions with a source of funds for the acquisition of capital items (e.g., land, building, vehicle etc) that will facilitate and enhance their livelihood during their period of employment;

c) To provide financial support to nominated beneficiaries of deceased Scheme members.

Who qualifies to be a member?

Membership of the scheme is open to all educational sector workers in Ghana,

What are the key features of TPFS?

•Each member of the scheme shall have a dedicated account to which contributions are credited.

•A member is permitted to contribute a maximum of sixteen and a half percent 16.5%) of the basic monthly salary to the scheme, which is tax exempt.

•A member has the option to make additional voluntary contributions to his dedicated Account. However, any additional contribution beyond 16.5% of the basic monthly salary shall be subject to tax.

•A life insurance cover shall be purchased for each member of the Scheme during the first three years of enrolment, which entitles the nominated beneficiaries of a deceased member to a sum assured of One Thousand Ghana Cedis (GHS1,000) in addition to the outstanding balance in the deceased member’s account.

•A member shall be permitted to withdraw part of his accrued benefits before they retire or exit the service of the employer, except that the first withdrawal shall be permitted after a minimum period of three (3) years from the date of joining the scheme and shall not exceed fifty percent (50%) of the total contribution together with any accrued interest.

•Subsequently, the member shall be permitted to make further partial withdrawals from the Fund once in every two (2) years; and the withdrawal amount shall not exceed 50% of the member’s current fund value.

•Where a member withdraws before retirementorbefore10yearsofservicefrom the

date of first contribution, 15% tax shall be deducted and remitted to the revenue authority.

What Benefit is a member entitled to?

•Retirement Benefit: A member who has attained the Normal Retirement Age or who

wishes to take an early retirement at age 55, shall be paid a lump sum benefit equal to the aggregate of the funds in his Account made up of all contributions and net investment returns thereon) as at the date of his exit

•Death-In-Service Benefit: If a member dies while in the service of the employer before the Normal Retirement Age, Beneficiaries shall be paid from the Scheme a

lumpsum benefit equal to the aggregate of the funds in his Account (made up of all contributions and net investment return thereon).

•Total Incapacity Benefit: A member who, before reaching the retirement age, wishes to be paid his accrued benefits on the ground of total incapacity shall be paid a benefit equal to the aggregate of the funds in his Account (made up of all contributions and net Investment returns there on) as at the date of his exit.

•Permanent Emigration Benefit: A member of the Scheme, who is not a citizen of Ghana and who, before reaching the retirement age, wishes to emigrate permanently from Ghana shall be paid a benefit equal to the aggregate of the funds in his Account (made up of all contributions and net investment returns thereon).

What other benefits are available to a member?

•A member of the Scheme is entitled to use the accumulated savings as collateral for mortgage for acquisition of primary residence.

•As a member of the Scheme, you are also entitled to discounts on other GLICO products.

They are:

*GLICO Child Education Policy

*GLICO Life Insurance Policy

*GLICO Health Insurance Policy

*GLICO General Insurance Policy (e.g. motor, goods-in-transit, fire and allied perils etc).

Third Party Administration Of Group Personal Pension Schemes

Apart from the two Master Trust schemes managed by GLICO Pensions, the Company also provides efficient pension administrative services for large pension schemes.

The Company currently provides third party administration services for the Ghana Education Service (GES) Pension Scheme, which is one of the largest pension schemes in the country.

GLICO Master Trust Provident Fund Scheme (Tier 3)

This represents the third layer of the pension schemes provided for under the National Pensions Act (Act 766).

GLICO Pensions has designed the GLICO Master Trust Provident Fund Scheme for both workers in the formal and informal sectors in Ghana. For the formal sector employees, this Scheme is a supplementary pension scheme to the Tier 1 and Tier 2 pensions and its designed to ensure that employees retire to a cushion of cash that cater for all their financial needs.

The GLICO Master Trust Provident Fund Scheme serves as the main pension scheme for the informal sector employees and indeed a large number of informal sector employees, both groups and individuals, have been enrolled onto this Scheme.

Under the GLICO Master Trust Provident Fund Scheme, contributors enjoy tax exemptions on the amount deducted as monthly contributions and can make withdrawal of their lump sum after ten years of continuous contribution.

Like the GLICO Master Trust Occupational Pension Scheme, the GLICO Master Trust Provident Fund Scheme also gives an attractive returns due to the large asset base that gives GLICO Pensions bargaining power to negotiate for good investment returns.

GLICO Master Trust Occupational Pension Scheme (Tier 2)

Under the National Pensions Act (Act 766), if you are a formal sector worker, then the Social Security and National Insurance Trust (SSNIT) is mandated to manage your Tier 1 pension. GLICO Pensions, as a licensed private pensions company, is also mandated to manage your Tier 2 pension, which would pay a lump sum to you upon your retirement.

We have therefore designed a GLICO Master Trust Occupational Pension Scheme that specially takes care of your Tier 2 pension. The Scheme, since its establishment, has had several companies and institutions signing on. Because of the sheer size of the assets under management, it is one of the most robust pension schemes in the country and no wonder more customers keep joining year after year.

The GLICO Master Trust Occupational Pension Scheme gives good returns since the large asset base enables us to negotiate for the best of investment returns for our customers while still safeguarding the investment in accordance with regulatory guidelines.