The Pensions Act of 2008 is an act passed by the parliament of Ghana. It is designed in the format of a three-pronged system with the primary purpose of providing enhanced pension retirement benefits to employees:

  • Tier 1 is a mandatory basic national social security managed by SSNIT which provides monthly pensions at retirement and other related benefits such as survivor’s benefit.
  • Tier 2 is a privately managed, mandatory occupational pension scheme designed to give contributors higher lump sum benefits.
  • Tier 3 is a voluntary pension scheme for workers in both the formal and informal sectors to provide supplementary retirement income for workers.

The first tier is managed by SSNIT. The second and third tier schemes are managed by Trustees in conjunction with fund managers and custodians.

  • Tier 1 is 11% + (2.5% NHIL) of basic salary
  • Tier 2 is 5% of basic salary
  • Tier 3 is up to 16.5% of basic salary

The employer is mandated under the Pensions Act to make the necessary arrangements for their employees to join approved and registered schemes. It is also the responsibility of the employer to ensure all monthly contributions are made into the approved custodian account by the due date.

The regulatory measures enshrined in the Pensions Act, regulations and guidelines issued the National Pensions Regulatory Authority help to ensure contributions are safe and adequately protected. These measures include the separation of the functions of the Trustee, fund manager and custodian, the issuing of investment guidelines among others.

The total contributions will be paid out by the employer directly to a Pension Fund Custodian Account. The fund manager is expected to advise the trustee on the investment of the pension funds in accordance with the provisions of the Act and investment guidelines.

  • Tax Reliefs: The Act provides for up to 35% of employees income (whether contributed by employer alone or in partnership with employee), to be exempted from tax when set aside for retirement related investment within the framework of the National Pensions Act. Additionally, the returns on this income will not be taxed under the new scheme.
  • Protection of Accrued Returns: The law prohibits the attachment of the returns on the investment in the execution of a judgment debt or such returns being used as a charge, pledge, lien, or being transferred, assigned or alienated by or on behalf of the member.
  • Safety: Safety of investment is the foremost objective. Investments are to be undertaken in a manner that seeks to ensure the preservation of capital. The investments would be diversified by asset class and security type in order to reduce the overall portfolio risk.
  • Collateral for mortgage: Future lump sum pension benefits can be used as collateral to secure a mortgage for the acquisition of a primary residence.

A fund manager is an institution licensed by the Securities and Exchange Commission and the National Pensions Regulatory Authority to formulate, advise and implement investment strategies to maximize returns for contributors.

Funds can be invested in several asset classes: Fixed Income, bonds, bills and other securities issued or guaranteed by the Bank of Ghana or the Government of Ghana, certificates of deposit issued by commercial banks, equities, corporate bonds and collective investment schemes such as mutual funds.

  • Government of Ghana Bills and Bonds: 75% of Assets under Management
  • Equity: 10% of Assets under Management
  • Corporate Bonds: 30% of Assets under Management
  • Money Market: 35% of Assets under Management
An ordinary share represents equity ownership in a company and entitles the owner to a vote in matters put before shareholders in proportion to their percentage ownership in the company.
The benefits of investing in shares include dividends and capital gains. Dividends are the distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders. The dividend is most often quoted in terms of the Cedi amount each share receives (dividends per share). It can also be quoted in terms of a percent of the current market price, referred to as dividend yield. Capital gains are an increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short term (one year or less) or long term (more than one year). A capital loss is incurred when there is a decrease in the capital asset value compared to an asset's purchase price.
The potential client will have to fill out a couple of forms which can be downloaded from our website. The client must attach a copy of the passport page containing his/ her details, or a valid national I.D and attach a passport sized photograph. These can be scanned and emailed for early setup of the account. The original forms must be sent by regular mail.
FirstBanC does not require a minimum cash amount to open a securities account. In fact the account is opened free of charge and is only funded when the investor has decided on the securities and the volumes s/he wants. The requirements to open the account are; a passport picture, proof of identity (in this case a copy of the page of your passport bearing your details) and fill out a couple of forms and the account will be opened. We however have two securities products that require minimum cash amount to open. The Wealth Builder Account requires a minimum of ¢1,000.00 (US$600.00) to open and regular monthly investments of minimum ¢200.00 (US$ 120.00). The aim of this account is to help investors grow wealth through regular investments. FirstBanC Analysts will recommend well researched securities to the investor for consideration for their portfolios. The Platinum Account is a discretionary account requiring a minimum of ¢30,000.00 (US$18,000.00). This is a managed account that attracts a management fee of 1% per annum on assets under management aside the transactional costs which will not exceed 2.5% per executed trade.
Yes we have facilities to provide nominee account services to our clients.
Executed trades attract transactional fees of 2.5% of the value of the transaction. This fee includes charges paid on trade by trade basis to the Ghana Stock Exchange, the Securities and Exchange Commission, the Ghana Securities Depository and Broker fees. We do not charge maintenance fees.
Yes you submit your orders via email. Orders may even be submitted via phone calls or text message but such orders must be confirmed by email before the orders will be executed.
We have a very strong research department which carries out company research, equity research and economic research for and behalf of our clients. We have daily and weekly research snapshots on the economy and equities which our clients can subscribe to.
We do not do that currently, but we have firms we can use to execute your transactions in those countries In all cases you can decide to deal directly with FirstBanC or through a Custodian of your choice. We can recommend some custodians should you desire to use custodial services. The custodians also charge fees for the services provided which may increase your overall transaction costs.

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