AS part of its efforts to enable workers in the informal sector to access pension benefits, MTN Ghana has launched ‘My Own Pension’ Scheme.
The product is expected to provide flexibility and simplicity in the pension sector to encourage the informal sector to participate voluntarily.
Speaking at the launch in Accra yesterday, Mr Eli Hini, General Manager Mobile Financial Services at MTN Ghana said even though structured pension systems play a critical role in providing necessary income for the elderly population and alleviate post-retirement poverty; it was mainly targeted at the formal sector.
He said data from the National Pension Regulatory Authority (NPRA) show that 85 per cent of the country’s labour force were in the informal sector, but the number of informal workers who have access to social benefits through institutionalised social security schemes was negligible.
Over the years pension reforms have focused mainly on the formal sector leaving an overwhelming majority of the country’s labour force, he added.
Mr Hini noted that it was for those reasons that MTN in partnership with United Pension Trustees have decided to introduce a flexible pension scheme targeted at the informal sector to bridge that gap.
“Fortunately for us, the rate of mobile phone penetration and mobile financial services provides us with the unique opportunity to secure the future of informal sector workers and Ghanaians in General.
“With over 12.4 million registered subscribers, MTN Ghana does not only consider it as a necessity, but also a duty to ensure that our customers benefit fully from this innovation.”
He added that MTN was committed to ensuring that their customers enjoy brighter lives not only during their active working years, but also in retirement.
The scheme which comes in two forms; a savings sub account and a retirement sub account is opened to individuals aged 15 and above, with registration and payment enabled through MTN Mobile Money.
Mr Kweku Odame-Takyi, Director General of Management Development and Productivity Institute, who spoke on behalf of the Minister of Employment and Labour Relations said commended MTN and its partners for the laudable initiative, adding that pensions were important component of social protection and a key pillar of the decent work agenda that government seeks to promote.
He also noted that the coverage of pension in the country was very limited to the formal economy which meant that only a small majority of workers were covered.
“Government is unwavering in its commitment to expand pension coverage to all workers in all sectors of the economy to achieve financial inclusion and ensure retirement income security.”
He said the Tier-3 Pension Scheme made specific provision for the informal sector, and once the process was completed the retirement income security of all workers particularly those in the informal sector would be guaranteed.
He appealed to MTN and its partners to extend the product to other vulnerable groups within the economy in order for them t also benefit from the opportunity.
Thefinderonline