What is the Teachers’ Provident Fund Scheme?
The Teachers’ Provident Fund Scheme (TPFS) is a voluntary personal pension scheme that is designed in line with the National Pensions Act, 2008 (Act 766) as amended and duly registered by the National Pensions Regulatory Authority (NPRA). The scheme is sponsored by GLICO Pensions Trustee LTD.
What are the objects of TPFS?
To provide supplementary pension benefit to enhance the retirement income security of scheme members.
To provide a source of funds for the acquisition of capital items (e.g., land, building etc.) that will enhance the living standard of scheme members.
To provide financial support to nominated beneficiaries of deceased scheme members.
Who qualifies to be a member of TPFS?
Membership of TPFS 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 free life insurance cover shall be provided for each member of the Scheme during the first three years of enrolment, which entitles the nominated beneficiaries of the 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 attaining the retirement age, 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 fifty percent (50%) of the member’s current fund value.
Where a member makes partial withdrawal before retirement or before 10 years of service from the date of first contribution, fifteen percent (15%) tax shall be deducted and remitted to the revenue authority.
What are the benefits under TPFS?
Retirement Benefit: A member who has attained the Normal Retirement Age or who wishes to take an early retirement from age 55 years, 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, the nominated beneficiaries shall be paid a lump sum benefit equal to the aggregate of the funds in the deceased member’s Account (made up of all contributions and net investment returns 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 thereon) 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) as at the date of his exit.
How do I pay my contributions?
Contributions shall be deducted at source by the employer and remitted to the scheme.
However, a member is also permitted to make additional voluntary contributions through direct bank debit or via mobile money.
How do I know the balance in my pension account?
SMS notification will be sent to your mobile phone number whenever payment is received on your behalf, showing the amount received and the current balance in your account.
You may also download the GLICO Pensions Mobile App from Google Play store and view your individual membership statement online 24/7.
What other benefits are available to a member?
A member of TPFS is entitled to use the accumulated savings in his account as collateral for mortgage for the acquisition of a primary residence.
A member of TPFS is entitled to discounts on other GLICO products e.g.
Child Education Policy
Life Insurance Policy
Health Insurance Policy
General Insurance Policy (e.g. motor, goods-in- transit, fire and allied perils etc)
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