Dr. Derek Amoateng, the Board Chairman of the Pension Scheme, has indicated that the Health Sector Occupational Pension Scheme investment leapfrogged from GHS2,040 in 2012 to GHS2.1 billion at the end of 2021.

The Scheme’s Assets under Management (AUM), made up of member contributions and the Temporary Pension Fund Account (TPFA) shot to GHS2.1 billion in 2021 from GHS1.6 billion in 2020. The change over the period translated to GHS485,091,986.13, representing a 30 percent growth for the year.

On a yearly basis, the Scheme continued on an impressive growth path in 2021, recording GHS345 million, constituting a 21.25 percent nominal return. Meanwhile, the Scheme has a net rate of return of 18.72 percent and a real return after inflation of 8.65 percent at the end of the fourth quarter of 2021.

Dr. Amoateng further disclosed that the total benefit payments increased significantly from GHS9,784,964 in 2020 to GHS27,738,622 in 2021, of which 1,721 members received their benefits.

Dr. Amoateng noted the Board of Trustees of the Scheme complied with the asset allocation mix provided under the National Pensions Regulatory Authority (NPRA) investment guidelines and its Statement of Investment Policy.

According to Dr. Amoateng, the assets in the portfolios were allocated with the goal of preserving fund value, minimizing risk, and achieving an optimal return target of 3.5 percent real return above inflation. The Board, he said, would continue to oversee the task of striking the right balance between the opportunities and risks to achieve the overall objective of preserving the Scheme contributions and adding value to the lump sum benefits on members’ retirement.

Endless Contribution of Health Practitioners

Ms. Tina Mensah, the Deputy Minister of Health, on behalf of the Sector Minister, acknowledged the endless contribution and commitment of health practitioners towards delivering good health care to the citizenry.

The Deputy Minister advised the public to inculcate the habit of saving for future benefits, saying “If you save money today, money will save you tomorrow.” She urged the leadership of the Scheme to put in place all the necessary measures to protect the money of members by diversifying the portfolio to minimize risk.

Mr. Bright Wireko-Brobbey, the Deputy Minister of Employment and Labour Relations, speaking on behalf of the Sector Minister, noted that the pension industry has over 345 service providers that collectively manage an estimated GHS40 billion pension fund assets. He encouraged regular capacity-building programs for the Board of Trustees and industry players of the three-tier pension scheme to adequately equip them with the requisite knowledge, skills, and competence in the management of pension funds.

Dr Patrick Kuma Aboagye, the Director General of Ghana Health Service, on her part, pledged to ensure the sustainability of the Scheme by ensuring that all members of the service contributed to the Scheme.

The Scheme was registered on November 12, 2012, under the National Pension Act 2008 (Act 766) by the NPRA.