The seemingly neglect and its associated impact on Members of Parliament (MPs) when they either voluntarily retire from public service or lose an election has come to the fore of the legislature, with the Majority Leader Mahama Ayariga, requesting the House to critically reflect and set up a committee to welcome proposals for the setting up of a Pension Scheme for retired parliamentarians.
The proposed MPs Pension Scheme, he noted, would not be financed by the taxpayer. Instead, it would be financed from Carbon Credit revenues.
This initiative, he told the legislature, would help the temptation for parliamentarians to engage in corrupt practices to supplement their income while also making them compliant to environmental sustainability.
Delivering a statement on the establishment of a Pension Scheme for retired parliamentarians in Ghana on the floor of Parliament on Wednesday, January 29, 2025 Ayariga recalled the challenges that retired or exited parliamentarians go through, unlike other Article 71 holders like the Judges and highlighted the immense benefits such schemes are giving to parliamentarians in some jurisdictions.
He noted that the coming on stream of the MPs Pension Scheme would have a turnaround in the life of MPs when they go on retirement, when the scheme comes on stream.
“Mr. Speaker, the perception out there is that parliamentarians are well to do. It is unfortunately not the case in the majority of the instances. Many parliamentarians come from diverse backgrounds and may not have had the opportunity to build a significant retirement nest egg. Without a pension scheme, they may face financial uncertainty in retirement, which can be a source of stress and anxiety and vulnerability”.
“This will translate into a national vulnerability given where they sit and the approvals that must come from them.
“A pension scheme would provide them with a predictable income stream, allowing them to live with dignity and security when they leave Parliament. They can better resist temptations”, he explained.
Drawing inspiration from how pension schemes are being utilised in some other jurisdictions like the United Kingdom and Kenya, Ayariga, who is also the Leader of Government Business, outlined how the Pension Scheme for Ghanaian parliamentarians would be.
For instance, he said the scheme would allow Ghana to generate carbon credits from projects like afforestation, reforestation, renewable energy or energy efficiency projects that reduce greenhouse gas emissions.
“We will strengthen the mechanisms for selling the carbon credits generated in Ghana on the international market, such as the United Nations’ Clean Development Mechanism (CDM) or the Voluntary Carbon Market.
“A percentage of the revenues will then be allocated to the Parliamentarians’ Pensions. The allocated revenues could be invested in a diversified portfolio to generate returns to further expand the quantum. An investment policy will guide that. Regular reports will be provided”, he explained the framework.
His proposal was welcomed by all the MPs present but not without concerns.
Patrick Yaw Boamah, MP for Okaikwei Central described the proposed MPs Pension Scheme “a good call” from the Leader of the House. However, he noted that the perception of the public about MPs had to do with how “we carry ourselves out there” and also how “our parties organise our parliamentary primaries.
“The kind of resources we are able to marshal and mobilise to go and win primaries – the distribution of items also gives credence to the fact that we are a rich class. We need to watch that.
“The public doesn’t even know that the car loans that we take are deducted from our salaries at source and that we make the right contributions towards the cars that we drive and that a Member of Parliament pays his or her driver and it comes from the same salary, unlike other Article 71 Office Holders who enjoy all those benefits”, he asserted.
He noted that the proposed pension scheme for the MPs, which is anchored on Carbon Credits is a matter of policy to be signed by the government and urged the Majority Leader to take the proposal to the government for consideration.
Laadi Ayii Ayamba, MP for Pusiga, contributing to the statement noted that members would only appreciate the scheme when they exit Parliament or go on retirement.
“When you sit here you actually do not feel the situation as long as you continue to be an MP. It is when you meet our colleagues that reality will dawn on you. Some have actually died out of poverty. Some have had certain issues that they cannot come back to this House to complain”, she noted.
She corroborated the concerns made by Patrick Boamah and urged MPs to relook at their lifestyles in public.
She proposed a seven-member committee to critically examine the matter before the House and make recommendations that will inure to their benefits.
She also stressed that the source of funding the scheme should not be limited to revenues from Carbon Credit.
By Stephen Odoi-Larbi
