The SIC Financial Services Limited, the brokerage and investment arm of the State Insurance Company has won the bid to manage the Provident Fund of Kumasi Polytechnic which is currently valued at about GH?500,000 (five billion old Ghana Cedi).
An agreement to that effect has been signed between the two entities at the Polytechnic’s premises in Kumasi.
At a short but impressive ceremony to sign the fund management agreement, the Head of Quality Assurance of Kumasi Polytechnic, Mr. Eric Brobbey explained that, the decision to contract the SIC- FSL as the Polytechnic’s fund managers was the culmination of intense debate.
“After lengthy deliberations and consideration, the SIC-FSL was chosen as the fund managers of the K-Poly staff Provident Fund. We hope they will ensure the continuous growth and profitability of the fund to the mutual benefit of all,” Mr. Brobbey said.
According to him, the decision was also in line with the new Pensions Act 2008 (Act 766) which encourages third tier pensions schemes to shift the management to private fund managers.
Mr. Brobbey said the fund management agreement with the SIC-FSL is for an initial two-year period but is renewable. He said, the core responsibility of the new fund managers is to ensure that the fund achieves the best possible returns within specific investment parameters set by the Polytechnic.
Ms. Naomi Naadu Lartey, the Head of Legal, Compliance and Human Resource, who signed the agreement on behalf of SIC-FSL, expressed her company’s satisfaction with the fruitful dealings with K-Poly.
“We are looking forward to a very good working relationship with you. We know that a lot is expected of us and we will work very hard to meet all your expectations,” Ms. Naadu Lartey said.
She noted that management of the Polytechnic’s Provident Fund would not be the only relationship SIC-FSL will forge with the Polytechnic but will look at other areas of possible co-operation which will benefit the two institutions.
“The SIC-FSL is not here to make money or profit but to provide very critical services that will inure to the benefit of Kumasi Polytechnic,” she said.
The K-Poly Provident fund is generated from deductions of 10 per cent of staff basic salary every month and periodic payments made by the Polytechnic into it. The provident fund was hitherto managed by the institution itself and membership is optional.
The National Pensions Act advocates for the establishment of a new contributory three-tier pension scheme with a National Pension Regulatory Authority to oversee the efficient administration of the composite pension scheme.
The first tier is the SSNIT Pension Scheme, while the second and third tier schemes are to be privately managed by approved trustees, licensed by the NPRA, with the assistance of Pension Fund Managers and Custodians.
The Trustees will not have access to pension funds, but are responsible for appointing the pension fund managers, custodians and other service providers, and ensuring their compliance with regulatory requirements.
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