Ghana Cocoa Board is currently registering and collecting data across all cocoa-growing areas, which will be used to establish a database for the Cocoa Management System (CMS). The Cocoa Farmer Pension Scheme is set to cover about 800,000 cocoa farmers in Ghana. This system will enable the tracking of farmer contributions and prompt payment of claims to beneficiaries. The scheme is in compliance with Section 26 of the Ghana Cocoa Board Law 1984, which mandates COCOBOD to establish a contributory insurance for cocoa farmers, aimed at providing a decent pension for cocoa farmers after retirement.
According t
o Fiifi Boafo, Director of Communications at COCOBOD, the scheme is managed by the National Pension Regulatory Authority (NPRA). Farmers are expected to contribute 5 percent of their produce every time they go to the cocoa shed, while COCOBOD contributes 1 percent. Trustees will manage the funds on behalf of the cocoa farmers. Farmers are supposed to contribute until the age of 55, but those who are beyond 50 years old are required to contribute a minimum of five years and can still benefit from the scheme.
Two accounts have been created under the farmer pension scheme; one account is designed to work throughout the contribution period, while the other account, which is 25 percent, can be accessed by farmers during critical situations such as financing their children’s education. Farmers are entitled to a lump sum when they retire and have a minimum of 15 years to benefit from their monthly pension benefits. If the farmer passes on before the 15 years, the beneficiaries of the farmer will also benefit from the contribution the farmer has made.
Mr. Boafo stated that the response from farmers so far has been impressive and encouraging, with the farmers being very willing to contribute to the scheme. He concluded that the farmer pension scheme is here to stay and will continue to serve farmers in Ghana for as long as there is a need for a pension scheme.
BY:AGRIWATCH REPORTER
