CLOGSAG, partners unveils Pempamsie housing scheme to facilitate members house ownership drive

Civil and Local Government Staff Association of Ghana( CLOGSAG) and partners including Hedge Pensions Trust have unveiled a novel housing scheme to meet the felt needs of its members.

The scheme, when operational,will ease home ownership needs of workers who are members of CLOGSAG, an initiative which was lauded by members. "This is a good news for all members who are contributors to the Pempamsie Tier3 Fund.

A roof over the head of a worker is of primary importance especially when it is to be.achieved through the benefit of the third tier pension scheme, "this according to the CLOGSAG President, Mr. Benjamin Otoo.

The elated president who could not hold his joy for the birth of the novelty initiative, called on members to embrace same. On his part, the Executive Director, Hedge Pension Trust, Mr. Isaac Aidoo inferred, "I am very enthused to bring you one of the benefits of the National Penions Act, 2008( Act 766).For fifteen years, this provision in the law has not been operational. The Hedge Pension Trust have taken the initiative to actualize the provision under section 103 and 114 of the Act for the benefit of member".

He however noted that though, pensions were not to be assigned, Act 766 sections 103 and 114 provides for the assignment of benefits, that is : "103 (1) a scheme should have rules to prevent assignment of benefits" (2) despite subsection (1), a scheme may allow a member to use that member's benefit to secure a mortgage for the acquisition of primary residence." Again, the Executive Director stated that section 114 also stated, "Assignment of benefits 114(1) a scheme shall have rules that prevent the assessment of benefit" (2) despite subsection (1), a scheme may, allows a member to use that member's benefits to secure a mortgage for the acquisition of a primary residence but a member is not liable to pay tax on any withdrawal under this section".

The Executive Director lamented the low-salary syndrome of workers making house ownership for workers in the public sector a mirage.

He was upbeat that with the new initiative, members of CLOGSAG will be empowered to acquire a primary residence. He said the Pempamsie Mortgage product has received approval from the National Pensions Regulatory Authority(NPRA).

Traditionally, in Ghana, he noted that houses are built in phases therefore the initiative was carefully designed to disburse loans also in phases at a minimum of Fifty Thousand Ghana cedis(50,000.00) per phase. He therefore urged the gathering of CLOGSAG members to continue contributing to the pension fund in order to qualify for the facility.

Background

The Pempamsie Housing Scheme is a Primary Residence Product by Hedge Pensions Trust for CLOGSAG Members that provides mortgage facility for the completion of their primary residence in phases with a minimum mortgage amount of GHS 50,000.

The scheme features three outlook including mortgage facility in phases which provides funding for completion of primary residence in phases. Also, the novelty scheme provides unique financial freedom to pay off mortgage while still working thereby reducing post retirement financial crisis. Finally, the scheme holds an innovative financing with flexibility in financing options tailored to the subscribers' needs. However, to qualify, one must be a member of CLOGSAG, a contributor to the Hedge Master Trust Occupational Pension Scheme(Tier 2), must also be a contributor to the Pempamsie Fund(Tier 3) and must be a contributor to the CLOGSAG Fund.