The government has announced national enrollment of the Cocoa farmer’s pension scheme starting with the Ashanti region where the scheme was launched in 2020.
Registered farmers on the scheme will contribute 5% of their cocoa proceeds into the scheme after the sale of beans while the Government will contribute 1% of annual cocoa sold outside the country to the scheme.
Chairman of the Board of trustee Cocoa Pension Scheme, Daniel Mensah Aidoo said this while addressing the media in Kumasi.
To demonstrate the government’s commitment to the welfare of cocoa farmers in Ghana, President Nana Akuffo Addo on 1st December 2020 launched the Cocoa Farmers Pension Scheme in Kumasi.
The President tasked the Ghana Cocoa Board, and National Pensions Regulatory Authority to come up with modalities to ensure that they give meaning to the provision in the PNDC Law 81 that enjoins COCOBOD to implement a scheme that provides cocoa farmers with a decent pension.
In August 2021, after the Cocoa Management Systems (CMS) had recorded some significant strides at areas such as the New Edubiase in the Ashanti region, a 3-week pilot phase of the scheme was organized.
In executing this mandate, however, Cocoa board said, they realized a number of hurdles had to be removed to secure a pension scheme devoid of implementation challenges.
The first hurdle was the need for a credible database on all cocoa farmers in the country followed by using sample of the data captured on farmers to test-run the scheme’s modalities for a smooth full-scale implementation.
In August 2021, after the Cocoa Management Systems (CMS) had recorded some significant strides at areas such as the New Edubiase in the Ashanti region, a 3-week pilot phase of the scheme was organized. Lessons learnt from the success of the project led to some structural reforms in the Scheme’s modalities.
Briefing the media Daniel Mensah Aidoo said “Today, we are gathered to share with you updates on the ongoing enrolment on to the Pension Scheme that has already begun in the Ashanti Region and also begins expanded sensitization and publicity on the Scheme. The exercise forms part of a broader strategy to incrementally enroll cocoa farmers in the country on to the scheme’’.
He further added “Cocoa Farmers in Juaso, New Edubiase, Antoakrom, Bekwai, Obuase, Nyinahini and Tepa who have been registered under the CMS and given cocoa cards are being enrolled at designated centres. We have therefore deployed enumerators to visit cocoa communities to enroll our farmers. Five days into the exercise, about 90% of registered cocoa farmers have already been enrolled in the districts selected for the Ashanti Region and each day records an influx of farmers eager to be enrolled in the Pension Scheme. This is an indication of the willingness of farmers to enjoy a decent pension. of We therefore encourage other farmers who are yet to visit the enrolment centres to go and enroll to be part of this historic exercise’’.
As the slogan of the scheme goes “Adwumay3foc gye pension a, okuani nso begyebi”. Government and private sector workers contribute during their working life and we expect our farmers to also contribute in order to enjoin a comfortable retirement. This is the essence of the Cocoa Farmers Pension Scheme.
He stressed “ For the start, the Ashanti and Western South Cocoa Regions have been selected for this phase. Altogether some 15 cocoa districts, where data captured by the CMS have been declared ‘clean’ or deemed comprehensive are involved. There are also plans to scale up the exercise to cover the remaining 55 cocoa districts in the country’’.
Daniel Mensah Aidoo further explained that “the enrolment process is free of charge. Farmers will not be asked to pay any amount. Farmers are to go to the enrolment centres with their cocoa cards and also the correct names of persons they would like to nominate as beneficiaries’’.
He encouraged farmers in the selected area to tune in to local FM Stations or community information centers for the time, date and venue for the enrolment exercise in the region.
“Our expectation is that cocoa farmers will AVAIL THEMSELVES and visit the designated centres to enrol on to the scheme’’.
BASIC FACTS ABOUT THE SCHEME
The scheme is a legal requirement under section 27 of the Ghana Cocoa Board Law 1984 (PNDC Law 81) and it is registered under the National Pensions Act 766 as a group personal pension scheme for cocoa farmers. It is compulsory for all registered cocoa farmers in Ghana.
The primary aims of the CFPS are to ensure a decent pension for cocoa farmers; improve their welfare and also make farming attractive to the youth.
Like any pension scheme, contributors make contributions to the scheme. In the CFPS, 5% of every sale of beans by the farmer will be deducted and transferred into the pension accounts. The government will also add its contribution.
Age is not a barrier. At any age, a farmer can sign on to a scheme. However, it is more advantageous if a younger farmer joins the scheme and maintains a good standing in respect of commitment to his/her contribution to the scheme.
While on the scheme, a contributor may, after 5 years decide to retire from it. But a young farmer who signs onto the scheme may opt to be retired at age 55 or decide to remain on it and retire at a later date.
The scheme will primarily operate through the purchasing clerks. It is regulated by the National Pensions Regulatory Authority and governed by a 10-member Board of Trustees which includes 4 cocoa farmers.
