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- 5 Marks
Question
Explain the 3-Tier scheme under the National Pension Act.
Answer
- First Tier: Basic National Social Security Scheme, mandatory for all workers in Ghana. Contributions of 13.5% (5.5% employee, 8% employer) are managed by SSNIT.
- Second Tier: Defined contributory Occupational Pension Scheme, also mandatory with 5% contributions managed by private trustees.
- Third Tier: A voluntary scheme for provident funds and other pension schemes. Contributions by employer and employee are tax-exempt up to 16.5% when contributed to approved fund managers.
- Tags: 3-Tier Pension Scheme, Contributions, National Pension Act
- Level: Level 2
- Topic: Tax Administration
- Series: MAY 2021
- Uploader: Theophilus