Pension Act 2008, Act 766 requires three tiers of the pension scheme. The First Tier is the Basic National Social Security Scheme for all workers in Ghana. It is a defined benefit scheme and mandatory for workers to have 13.5% contributions made on their behalf. The contribution is managed by SSNIT. The Second Tier is a defined contributory Occupational Pension Schem
Pension Act 2008, Act 766 requires three tiers of the pension scheme. The First Tier is the Basic National Social Security Scheme for all workers in Ghana. It is a defined benefit scheme and mandatory for workers to have 13.5% contributions made on their behalf. The contribution is managed by SSNIT. The Second Tier is a defined contributory Occupational Pension Scheme mandatory for workers with 5% contribution made on behalf of members. The contribution is managed privately by approved Trustees. The Third Tier which includes all Provident Funds and all other Pension Funds outside Tiers I and II is a voluntary scheme.
As a student of financial market and institutions provide a practical analysis of the lemon theory by Goerge Arkerlof in 1970 taking into consideration the three (3) tiers of the pension scheme.
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