The New 3-Tier Pensions Scheme could face implementation-challenges. This is due to a managerial conflict between the Board Chairman of the National Pensions Regulatory Authority, Richard Kwame-Asante and the Acting Chief Executive, Dr. Daniel Seddoh. The dispute has compelled Dr. Seddoh to resign his position with effect from 1st May, by first proceeding on terminal leave between mid March and the end of April. JOY BUSINESS gathers the non-cordial working relationship between the two had prevailed for most of the last year since Dr. Seddoh assumed office. It has also deteriorated to the extent that not even the intervention of a mediating team by the board and some other eminent persons could salvage the situation. In his resignation letter to President Mills, Dr. Seddoh described the conflict as not personal but professional - emanating from differences in management style. He raises a number of issues he deems serious administrative challenges at the authority that need to be addressed as soon as possible if the new Pensions scheme is to be implemented successfully. Prominent amongst these is Corporate Governance at the authority. According to him, it is rather unfortunate a fully constituted board was put in place ahead of the executive team - rather constituted on piece meal basis. This, he says created a challenge for the authority whereby the board instead of playing its governance role rather assumed executive powers and run the day-to-day affairs of the authority even after the Acting Chief Executive and a Deputy were appointed. He cited for instance the Board Chairman signing cheques and letters to override earlier ones written by the Acting Chief Executive as well as demanding that all administrative correspondence be copied to him. He also accuses the Board Chairman of bypassing the Acting Chief Executive Officer and his Deputy to instruct and obtain information from subordinates as well as engaging third party service providers in the execution of their contract. Another critical issue he highlights is the establishment of the relevant laws and guidelines vis-à-vis recruitment and training of staff which he believes should rather be the priority of the authority.He argues on the basis that it is people who would get work done and not laws and guidelines. He therefore bemoans the failure of the authority to make appointments because compensation packages were not in place despite interviewing a wide range of applicants as far back as about a year ago. He cites the specific instance he committed to develop a compensation package in his early days in office but this proved futile due to the lack of support from the Board. The salary structure according to him is currently with the Finance Ministry awaiting formal approval. Another issue highlighted in the letter is the apparent uncertainty over when contributors to the new tiers of the scheme would realize their benefits. This is because four years since the New Pensions Law was passed, the Board Members of the Pensions Regulatory Authority are divided in opinions over whether it should be immediately or after a gestation period. This is especially with specific reference to the 25% lump sum benefit to be determined by a formula agreed between the Pension Reform Implementation Committee and the Trust based on actuarial assessment. According to Dr. Seddoh, there are also some arithmetic errors in the computation of pensions benefits as stated in the New Pensions Law. These he says need to be imperatively corrected if the new Pensions Scheme is to be implemented successfully. He also cites as part of Transitional Issues with SSNIT, the Temporary 5% Pension Fund Administration. Here he bemoans the limited capacity of the authority in playing the role of fund Administrators. This is because the New Scheme involves defined contributions which entail fund investments for returns- making time a critical factor in the new scheme. As part of the transitional arrangement,SSNIT was to collect and remit to the Authority, payments from contributors whilst third party service providers handled data management. But with the configuration of SSNIT’s internal system as managers of Defined or Predetermined Benefits, it was quite obvious that SSNIT would have challenges in collecting and remitting contributions timeously. He noted it is consequently becoming onerous to keep accurate record on contributors' principal and returns on investments and ultimately produce statements that would reflect the time-value for money The outgoing Chief Executive is also impressing on government, the need for the establishment of a definite policy on how to fund the activities of the Authority at its initial stages. This, Dr. Seddoh says is crucial is due to the limited resources available to the authority in effectively executing what he deems its herculean task. Dr. Seddoh outlines a number of funding options here including: full government funding or a combination of government funding and limited generation of internal fund through levies. Another is Donor support or the Authority immediately levying schemes including SSNIT and Temporary Pension Funds aggressively. Also is Government giving seed money to set the Authority up for the next two years and wean off completely. The authority meanwhile by law levies 0.33 percent charges on the total contributions made each year. It is therefore expected to have generated some substantial amount from 2010 and 2011 contributions so far. Dr. Seddoh also cites the Contingent Liabilities of Transitional Provisions in the new Pensions Act which includes old schemes of various security agencies and educational sub-sectors.These schemes upon the commencement of the new Pensions Act are expected to apply for a transitional period of four years before ceasing to be in force. Each employee is also to issued with a Ghana Government Retirement Bond equivalent to the total retirement benefit that was due him or her as computed at the commencement of the new act. He says these and among other provisions in the new Pensions Act invariably call for serious discussions with the appropriate government agencies for effective planning and management of pension liabilities that are crystallising.