The Minister of Employment and Labour Relations, Ignatius Baffuor-Awuah has challenged cocoa farmers to accept the newly-introduced Cocoa Farmers Pension Scheme aimed at supporting them in their retirement, ill-health and incapacitation.
He made the appeal when he was speaking at this year’s national pensions’ awareness week organised by the National Pensions Regulatory Authority (NPRA) on Friday October 22, 2021 to educate cocoa farmers on the newly-introduced pension scheme for them.
“The best form of pension is to set aside part of your income in your prime age for it to be invested for your old age. Now that you have strength and can harvest 10 bags, 15 bags and 20 bags of cocoa that can fetch you income, you should realize that no condition is permanent”, he stated.
The programme, which was attended by hundreds of cocoa farmers from the cocoa growing areas in the Bono, Ahafo and Bono East regions, was held on the theme “Total participation in pensions to ensure retirement security”.
Mr. Baffuor-Awuah explained it had taken 37 years for the country to implement the pension scheme for cocoa farmers and therefore asked them to take advantage of the scheme to enable them to continue to enjoy the sweat of their labour when they could no more even farm.
He stated that as part of the implementation of the scheme, five percent of the incomes of registered cocoa farmers would be deducted when they sell their produce while COCOBOD would add one percent for investment.
Also, 25 per cent of the investment amount would be paid as lump sum to the farmers when they reached the pension age while the remaining 75 percent would be used to pay the monthly pension allowances.
He stated that already an 11-member board of trustees had been inaugurated to oversee the implementation of the cocoa farmers’ pension scheme and expressed the hope that the scheme would be managed properly to serve the purpose for which it was established.
“This is a novelty which should be supported by all to succeed”, he stated, adding that cocoa farmers who had worked tirelessly over the years to sustain the economy needed to be supported to make ends meet in their old age.
Background
The President, Nana Addo Dankwa Akufo-Addo, in December last year, launched a pension scheme dubbed “Cocoa Farmers Pension Scheme” at a ceremony in Kumasi.
The scheme was to cater for over1.5 million cocoa farmers in the country contributing to a pension scheme which will guarantee retirement benefits.
The Ghana Cocoa Board (COCOBOD) was mandated, under Section 26 of the COCOBOD Law, 1984 (PNDC L.81), to establish a Contributory Insurance Scheme for Cocoa Farmers within the framework of the Social Security Scheme, so that cocoa farmers could also enjoy a well-deserved pension, upon retirement.
It is also envisaged that the Pension Scheme for cocoa farmers in the country will enable them to make voluntary contributions towards their retirement, while COCOBOD makes a supplementary contribution on behalf of the farmers.
The scheme will ensure a decent retirement income security for cocoa farmers for life and ensure that they can maintain decent livelihoods after retirement.
