The Hedge Pensions Trust (HPT), has launched a housing product dubbed “Pempamsie Housing Scheme” to among other things, bridge the housing deficit in the country.

The launch which took place in Accra, seeks to meet the felt needs of members of the Civil and Local Government Staff Association, Ghana (CLOGSAG).

Speaking at the event, the Executive Director of Hedge Pensions Trust who doubles as the Executive Secretary of CLOGSAG, Mr. Isaac Bampoe Addo, said the initiative would actualize the provision under Sections 103 and 114 of the National Pensions Act, 2008 (Act 766) for the benefit of CLOGSAG members.

He noted that for fifteen (15) years, the provision in the law which allows members’ benefit to be used to secure a mortgage for the acquisition of primary residence remained dormant.

He added that, the Pempamsie Housing Scheme would provide loan facilities for members to facilitate their acquisition of primary residence before retirement. “Traditionally, in Ghana, we build in phases. This product is designed to disburse the loans also in phases at the minimum of fifty thousand Ghana cedis (GH₵50,000.00) per phase”, he explained.

The Executive Director lamented that house ownership for most workers in the Public Sector has been a mirage due to the low salary levels of public sector workers which make it impossible to acquire houses of their own.

According to him, the Pempamsie Mortgage Product is an innovative pension related product for members of CLOGSAG which has received approval from the National Pensions Regulatory Authority (NPRA).

He disclosed that to be a beneficiary of the product, the individual must meet all four criteria which include: being a member of CLOGSAG; being a contributor to the Hedge Master Trust Occupational Pension Scheme (Tier 2); being a contributor to the Pempamsie Fund (Tier 3) and; being a contributor to the CLOGSAG Fund.

The President of CLOGSAG, Mr. Benjamin A. Otoo, in a welcome address, commended the contributions of the Ministry of Employment and Labour Relations, the National Pensions Regulatory Authority, the Controller and Accountant General’s Department and the Hedge Pensions Trust as well as the National Secretariat of CLOGSAG that had allowed the Pempamsie Hosuing Scheme to become a reality.

“A roof over the head of a worker is of primary importance especially when it is to be achieved through the benefit of the 3^rd Tier of the three-tier pension scheme.

Speaking on behalf of the Ghana Commercial Bank (GCB), Mr. Kojo Nkwantabisa expressed the bank’s excitement to be associated with the Pempamsie Housing Scheme. He noted that as the Administrative Custodian of the product, GCB bank was committed to working closely with partners to realise set goals.

The Minister for Employment, Labour Relations and Pensions, Hon. Ignatius Baffour Awuah, called on Pensions Fund Managers to be innovative to come out with products that will benefit contributors due to the flexibility of investment alternatives for pension funds in the current dispensation. He stressed on the need to carefully roll out the scheme to avoid liquidation and financial burden on the Trust and members respectively.

 He unscored that finings of one of the researches conducted by his outfit revealed that one of the key things workers spend their money on is rentals. Hence, the demand for higher salaries from government.

Mr. Baffour Awuah said that many people spend up to a third of their disposable incomes on rentals. Adding that, “it is worrying to note that these rental fees do not go to them, they rather use that money to pay to a third party”. This practice, he said, deprives workers from acquiring a decent primary residence.

He therefore, called on members to contribute towards the product to be beneficiaries because it guarantees a reliable home while in service and after retirement.