Rule 1: Eligibility and Membership
Rule 2: Termination of Membership
Rule 4: Income on Contributions
Rule 7: Members’ Benefits Statement
Rule 10: Amendment to Rules of Scheme
Rule 11: Transfers from Any Other approved Fund (Portability)
GENERAL RULES
Welcome to the Old Mutual Individual Pension Plan (hereafter called ‘Mvest’ or the ‘Plan’) which is situated under the Old Mutual Prestige Pension Scheme (Tier 3 Scheme). Mvest is an individual pension plan registered as part of the Old Mutual Prestige Pension Scheme under the National Pensions Act, 2008 (Act 766). The sole purpose of this plan is to help individuals save money for their retirement, use the accumulated funds for future projects, and afford them the flexibility of a savings account with an investment benefit.
This type of pension plan can be used by self-employed individuals, part-time or full-time workers, and individuals who do not have access to a workplace pension.
The administration of this Plan shall be subject to the rules and guidelines of the National Pensions Regulatory Authority. In describing the Plan, the use of technical language as used in Act 766 is avoided. If there is a difference between these rules and the provisions of Act 766 which governs the Plan, the provisions of Act 766 will take precedence. The following rules outline the terms and conditions of membership, contribution requirements, benefit calculations, and other key provisions of the Plan. All members are encouraged to review these rules carefully and consult with their financial advisors.
DATE OF COMMENCEMENT
The Date of Commencement of this Plan shall be October 2017.
Rule 1: Eligibility and Membership
1.1 Any person above the minimum age of fifteen years, or any person exempted under sections 31 and 60 of the National Pensions Act 2008, Act 766 shall be eligible to become a Member.
1.2 A Member shall remain a member thereof until he ceases to be so as provided hereunder.
1.3 Each Member shall be issued a membership certificate in accordance with the Law notifying them of the essential features of the Plan.
1.4 Every Member shall make a nomination or nominations as to the beneficiary of their entitlement in the event of their death.
Rule 2: Termination of Membership
2.1 Membership of the Scheme will terminate on the date on which the Member elects to withdraw total Accrued Benefits from the plan.
2.2 A Member shall at any point in time after six months of first contribution be eligible to access a portion of his accrued funds when he puts in a request for partial withdrawal of his funds.
2.3 A Member who elects to exit the plan shall be entitled to his entire Accrued Benefit (total contributions plus gains or losses) in a lump sum.
Rule 3: Accounts
3.1 A separate account is maintained for each member in the books of the Mvest Plan.
3.2 The contributions of Members shall be paid into a Fund maintained by the Trustees with a Pension Fund Custodian.
3.3 All assets of the Scheme shall be acquired from the Fund.
Rule 4: Income on Contributions
Interest income shall be credited to each Member’s account at such rate as shall be determined by periodic determinations of the net income of the Plan (after provisions are made for investment and other expenses incurred by the Plan).
Rule 5: Accounts and Audit
5.1 The Trustees shall within three (3) months after the end of the year cause the accounts of the Plan to be produced and the accounts so produced shall be examined and the correctness of the Annual Financial Statements ascertained by qualified external auditors appointed by the Trustees.
5.2 The Trustees shall also cause an audit report to be prepared, which shall include a statement on the extent of compliance with
i) regulatory requirements,
ii) the Trustees duties under a Trust Deed, and
iii) the Scheme’s investment objective and other requirements under the Law.
Rule 6: Annual Report
6.1 The Trustees shall, in compliance with Act 766, prepare and publish an annual report consisting of;
i) the financial statements and audit report as specified under Rule 5.
ii) the scheme report prepared for that period, and
iii) the investment report for that period.
The annual report may include any other information relating to the Plan and its administration as the Trustees consider appropriate.
Rule 7: Members’ Benefits Statement
7.1 A benefits statement shall be rendered to each Member of the Scheme at the end of every year after the accounts of the Fund have been audited and certified by an external auditor. The statement will indicate:
(i) the balance in the Member’s account at the beginning of the period;
(ii) contributions made to Member’s account during the period;
(iii) distributed interest (income) apportioned to the account for the period; and
(iv) the balance in the account at the end of the period.
Rule 8: Tax Relief
8.1 Contributions made on this Plan shall be considered as post-tax contributions and hence will not attract any tax liability at the point of withdrawal.
8.2 Where an individual requests or expressly states at the onboarding stage that his contribution shall be subject to tax, the contribution shall be treated as a pre-tax contribution.
8.3 The pre-tax contribution shall be subject to a tax deduction for any withdrawal made before attaining 10 years on the Plan.
8.4 Members whose contributions to the Plan fall under Section 8.3 shall be exempted from tax liability under the following conditions:
(i) where the Member withdraws all or part of a Member’s Accrued Benefits on or after retirement.
(ii) where the withdrawal is done at any time after certification by a medical board that the Member is incapable of normal gainful employment due to permanent physical or mental disability.
(iii) A withdrawal from the Plan at any time by the beneficiaries of the estate of a deceased Member.
Rule 9: Dispute Resolution
Any disputes or claims between the Parties arising out of this Agreement which Parties are unable to amicably resolve within 30 days of when the dispute first arose shall be referred to arbitration in accordance with the Alternative Dispute Resolution Act, 2010, (Act 798) or any statutory modification or re-enactment thereof for the time being in force. The place of arbitration shall be Accra, Ghana. The language of arbitration shall be English. The award of the arbitration shall be binding.
Rule 10: Amendment to Rules of Scheme
10.1 The Trustees may at any time, upon giving due notice to the Members, propose to make amendments to the Rules subject to the approval of the National Pensions Regulatory Authority, provided that any change in the Rules that reduces the benefits that have accrued to any Member prior to the change will be void.
10.2 An amendment to the Rules shall not take effect until the NPRA Board has given notice of its approval to the Trustees.
10.3 Reference to an amendment of the Rules includes references to any addition of new provisions, or the substitution, omission, alteration, or repeal of existing provisions of these Rules.
Rule 11: Transfers from Any Other approved Fund (Portability)
11.1 On the admission to the Scheme of a Member who was a member of an approved pension scheme in connection with his previous employment, the Trustees shall, if requested, permit the transfer into the Scheme in respect of such Member the amount that represents his entitlement under the previous scheme. The amount so transferred shall be credited to the Member’s account.