Comparism of PNDCL 247 and Act 766 Pension Laws

Comparism of PNDCL 247 to Act 766 Pension Laws

1. MANAGEMENT

SSNIT solely managed pensions under the PNDCL 247. In the current dispensation under ACT 766, both SSNIT and CORPORATE TRUSTEES manages pension.

2. PENSION TYPE

The type of Pension under PNDCL 247 is DEFINED BENEFIT.

Under ACT 766, it is both DEFINED BENEFIT and DEFINED CONTRIBUTION.

3. MINIMUM CONTRIBUTION PERIOD

240 months minimum contribution period under PNDCL 247 but 180 months under ACT 766 with no qualifying contribution period for Tier 2 and 3.

4. PORTABILITY

Under PNDCL 247, SSNIT had monopoly over management of Pensions. Under the current dispensation, (ACT 766) SSNIT manages only Tier-1. Tier-2&3 become members of the Schemes selected by the employer. And One can port between Schemes.

5. MORTGAGE AND LOANS

Under PNDCL 247, members cannot use their pension funds to access mortgage or loan. With the introduction of ACT 766, members can use Tier-2 for mortgage and Tier-3 for both mortgage and loan.

6. PENSION BENEFIT

Under PNDCL 247, SSNIT paid both lumpsum and monthly benefit. With the introduction of ACT 766, SSNIT pays only monthly benefit while Tier-2&3 pays lumpsum.

COMPENSATION AND BENEFITS DEPARTMENT-GNAT