What is Tier 2 – Master Trust Pension?
Tier 2 is a mandatory occupational pension scheme established under Ghana's 2008 Pension Act—part of a three-tier system aimed at enhancing retirement security. It targets formal-sector employees, requiring contributions from both employee and employer, and is administered by licensed commercial trustees, such as Standard Pensions Trust.
Contribution Structure
- 5% of your basic salary is deducted monthly and allocated to Tier 2.
- This is in addition to your employer's contributions to Tier 1 (SSNIT).
Scheme Objectives & Benefits
Provides a lump‑sum payout at retirement (or earlier upon meeting conditions).
Ensures financial security during retirement through professionally-managed funds.
Members can use their accrued Tier 2 and Tier 3 pension benefits as collateral to secure a mortgage for a primary residence.
Features strong investor protections: governed by NPRA, with strict caps on fees, fiduciary duty, and regulated investment vehicles.
Why Choose Best Pensions Master Trust Scheme?
Trusted by employers nationwide for secure and rewarding pension investments.
Professionally Managed Funds
Contributions are invested through NPRA-regulated vehicles under fiduciary duty, with fees capped by regulation.
Rapid Access to Funds
Efficient claims processing post-retirement means minimal delays.
Digital Convenience
Online access to contributions and statements anytime, anywhere.
Nationwide Presence
With 8 branches and over 2,000 employers, we offer accessible local support.
Seamless Transitioning
Facilitates easy transfer of accrued benefits when changing employment.
Key Features at a Glance
| Feature | Details |
|---|---|
| Mandatory 5% contribution | Deducted monthly from your basic salary |
| Lump-sum payout | Available upon retirement or other life events |
| Primary residence support | Enables use of pension as security for mortgage facilities |
| Professional management | Licensed trustee with NPRA oversight; regulated investments & fees |
| User-friendly services | Online portal, SMS updates, branch network, rapid claim settlement |
| Portability | Benefits are fully transferable when changing jobs |
Eligibility & Access Conditions
You're automatically enrolled by your employer if they've contracted Standard Pensions Trust.
Withdrawals allowed after meeting retirement conditions:
- Retirement age (55–60)
- Unemployment (50+)
- Permanent disability
- Emigration or death
Benefit transfers: You can choose to keep your funds with Standard Pensions Trust or transfer them to your new employer's trustee.
How the Master Trust Works
A master trust is a single pension scheme that many unrelated employers join, rather than each employer setting up and governing a scheme of its own. Standard Pensions Trust acts as the licensed corporate trustee for the whole arrangement, while each member's contributions and returns are tracked in an individual account under their own Pensions Account Number (PAN).
The flow is the same every month. Your employer deducts 5% of your basic salary and remits it to the scheme alongside its Tier 1 obligation to SSNIT. Those contributions are pooled for investment purposes but accounted for individually, invested through vehicles the National Pensions Regulatory Authority permits, and held by an independent custodian rather than by the trustee itself. Fees are capped by regulation, and the trustee owes members a fiduciary duty — a legal obligation to act in their interest rather than its own.
Because the scheme is fully funded, what you eventually receive is the accumulated value of your own account: the contributions made on your behalf plus the investment returns earned on them, less regulated fees. It is not a promise of a fixed pension from a general pool.
Who Can Join the Master Trust Scheme?
Tier 2 is mandatory for formal-sector workers in Ghana, so participation is not optional — the question is which trustee administers your scheme. That choice is made by your employer.
- Formal-sector employees: you are enrolled automatically once your employer contracts Standard Pensions Trust. There is no separate application.
- Employers: any organisation with formal-sector staff can appoint Standard Pensions Trust as trustee for its Tier 2 obligation, whether it is enrolling for the first time or moving from another trustee.
- Workers changing jobs: accrued Tier 2 benefits are portable. On changing employment you may elect to transfer them into your new employer's scheme, or leave them with Standard Pensions Trust.
Self-employed and informal-sector workers are outside Tier 2, which applies to employment income. If that describes you, the voluntary Tier 3 arrangements are the relevant route — see Personal Pension or the Provident Fund scheme.
Benefits for Employers and Employees
For employers
- Meets the Tier 2 obligation under Act 766 without establishing and governing a standalone scheme.
- Governance, compliance and reporting sit with a licensed corporate trustee rather than with your finance team.
- Contributions are tax-exempt within the limits the pensions law allows.
- Onboarding and member queries are handled across 8 branches and a national contact centre.
For employees
- An individual account you can inspect at any time through the member portal or mobile app.
- A lump sum at retirement, in addition to your Tier 1 SSNIT pension.
- Accrued Tier 2 and Tier 3 benefits can be used as collateral for a mortgage on a primary residence.
- Benefits stay with you when you change jobs.
How Contributions Are Treated for Tax
Ghana's pensions law allows up to 35% of an employee's income to be treated as deductible where it is set aside as pension contributions: 13.5% to Tier 1, 5% to Tier 2, and up to 16.5% to Tier 3. Your mandatory Master Trust contribution therefore reduces taxable income rather than being deducted from post-tax pay. Members who want to use more of that allowance typically pair Tier 2 with a voluntary Tier 3 arrangement.
How to Join the Master Trust Scheme
- Complete the registration form. Employees use the employee registration form; organisations appointing us as trustee use the employer registration form.
- Submit the required documents. A Ghana Card and a passport photograph are the standard identification requirements. These can be uploaded directly with the online form, or submitted alongside a completed PDF.
- Receive your Pensions Account Number (PAN). Enrollment usually completes within 3–5 business days once all documents are in. Your PAN is the reference for your individual account from that point on.
The full process, including what happens after enrollment, is set out on the enrollment page.
Master Trust Questions
Is the Tier 2 Master Trust contribution optional?
No. Tier 2 is a mandatory occupational scheme for formal-sector workers under the National Pensions Act, 2008 (Act 766). The 5% of basic salary is required by law. What is chosen is the trustee that administers it, and that decision rests with your employer.
When can I withdraw my Tier 2 benefits?
On reaching retirement age (55–60), on unemployment from age 50, on permanent disability, or on emigration or death. Tier 2 is a retirement scheme, so it is not available as general savings before one of those conditions is met.
What happens to my Tier 2 benefits when I change jobs?
They remain yours. The law allows you to elect to transfer accrued benefits into your new employer's scheme, and the trustees of both schemes must comply with the transfer requirements. You may also choose to leave the accrued benefits with Standard Pensions Trust.
How is Tier 2 different from my SSNIT contribution?
Tier 1 is the basic national social security scheme managed by SSNIT and paid as a monthly pension. Tier 2 is a fully funded, privately managed occupational scheme held in your own account with a licensed trustee, and paid as a lump sum. They are separate contributions with separate payouts, and the two together form the mandatory part of the system.
Can I borrow against my Tier 2 benefits?
Accrued Tier 2 and Tier 3 benefits can be used as collateral to secure a mortgage for a primary residence. This is a use of the benefits as security, not an early withdrawal of them.
How do I check my Master Trust balance?
Through the member portal or the mobile app, at any branch, or by calling the customer service line. Further answers are collected on the pension FAQ page.
Related Resources
- All pension schemes in Ghana — how Tier 1, Tier 2 and Tier 3 fit together
- Employer sponsored schemes — for organisations that want to own and customise their scheme
- Provident fund scheme — voluntary Tier 3 saving for formal-sector workers
- Pension calculator — estimate what your contributions build toward
- Tier 2 explained — a plain-language walkthrough of the mandatory occupational pension
- Pension FAQs — answers to common member and employer questions
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