Macbeth and Free Will Essay

In Desiderius Erasmus’s Defense of Free Will, he refutes Martin Luther’s creed that God predestines everyone’s lives and instead asserts that man alone possesses the power to choose his own path to either salvation or damnation. The play Macbeth, by William Shakespeare, raises similar questions – did the protagonist, Macbeth, willingly choose to commit such atrocities as killing the king and his court to feed his own ambition, or did he merely play the role of a pawn, performing that which fate bade him do? Amid much controversy over this issue, evidence both in Erasmus’s critical essay and in the play itself affirms that Macbeth cognitively decides to act as he does in the play, confirming Erasmus’s perspective and suggesting that people have the ability to dictate their own fate through their thoughts, decisions, and actions. Through his interpretation of the Old and New Testaments in the Bible, Erasmus writes in favor of free will over predestination, a concept that, when applied to the character Macbeth, raises questions about the motives behind his detestable actions. In his essay, Erasmus explores the â€Å"power of the human† (46) to â€Å"turn away from what leads to eternal salvation† (46). According to this opinion, Macbeth makes a conscious choice to pursue a life of crime and sin, instead of simply following his fate. Macbeth’s plea that the â€Å"stars hide [their] fires† (1. 4. 57) so that â€Å"light [would not] see [his] black and deep desires† (1. 4. 58) indicates that Macbeth remains aware that his â€Å"wicked, rebellious will† (Erasmus, 48) lies within himself, and he fears the consequences of his sinful deeds. This very fear of punishment reflects the existence of free will in Macbeth – as Erasmus inquires, â€Å"why [should God] curse me, when I sinned through necessity? † (47). Macbeth’s clear understanding of the evil that he plans to commit and his fear of divine punishment suggest that characters in Macbeth choose their actions as opposed to following their destiny. Macbeth’s evil actions, however, are not completely driven by an inherent evil nature; although he does have free will in the play, he becomes a slave to his ruthless ambition because of his own moral weakness. As Erasmus writes, â€Å"there are certain seeds of goodness planted in men’s minds† (50), although â€Å"the will is perhaps more inclined to evil than to good† (50). In other words, everyone possesses both good and bad within them, and it is up to the individual person to â€Å"[turn themselves] towards, or away from, faith† (48-9). Macbeth’s apparently latent moral code surfaces occasionally throughout the first act in his moments of wavering in his violent resolve; he tells Lady Macbeth that they â€Å"will proceed no further in this business† (1.7. 34) in one of the scenes preceding the murder. However, the manipulative Lady Macbeth must only mention that which Macbeth desires and question his masculinity to crush Macbeth’s good side and force it to submit to his evil ambition. The ease with which Lady Macbeth extinguishes Macbeth’s doubt of the evil plan highlights Macbeth’s weakness for his ambition. Macbeth becomes a slave not to the devil, but instead to the very evil that resides within himself. Neither heaven nor hell predetermines Macbeth’s actions in the play; it is in fact his inability to compromise his ruthless ambition that ultimately forces him into crime. He chooses to sin of his own accord, and therefore faces his final punishment that sets the world back in order at the end of the tragedy. Through their individual works, Shakespeare and Erasmus imply that humans have free will to determine their own actions, and only the strongest of heart will succeed in accomplishing the work of God.

Marijuana Tax Act

Marijuana was declared an illegal drug in the USA with the passing of the Marijuana Tax Act in 1937 under dubious circumstances. 1 Since that time numerous studies have shown that the drug is less harmful than tobacco and alcohol. Despite the available evidence and the enormous cost of enforcing the marijuana ban, it is hard to understand why this relatively harmless drug continues to remain illegal in the United States. This essay argues why marijuana should be decriminalized without further delay. Opponents of legalizing marijuana contend that it is a dangerous drug; this is far from the truth. For example, there has not been a single recorded case of death due to marijuana overdose. On the other hand, a legal intoxicant like alcohol results in the death of about 5,000 persons every year due to overdose. The reason for this is that the ratio of cannabinoids2 necessary for intoxication is 40,000:1 while that for alcohol is generally between 4:1 and 10:1. (â€Å"Answers To†¦ ,† 2005) As such marijuana is one of the least toxic substances and would have to be consumed in physically impossible quantities to prove fatal. As for the health effects of marijuana, a World Health Organization (WHO) Study, which was scheduled to be published in December 1997 but was suppressed by its top management due to political pressure, had reported that Cannabis fared better than alcohol and nicotine in five out of seven comparisons of long-term damage to health. (Concar, 1998) In terms of addictiveness too, most studies show that marijuana was less addictive than alcohol, nicotine and caffeine. (Quoted in â€Å"Study Compares†¦ ,† 1994) A common myth about marijuana is that it acts as a ‘gateway' drug, i. . , marijuana use leads to use of harder drugs such as heroin or cocaine. This theory is disproved by the fact that after the legalizing of marijuana in Holland in the 1970s, heroin and cocaine use declined markedly, despite a slight increase in marijuana use. If the ‘gateway' theory were true, the use of hard drugs should have gone up rather than down. (â€Å"Answers to†¦ † 2005 ) Other charges against marijuana, based mainly on prejudiced and unreliable studies, are that it contributes to an escalation in crime and is responsible for increased driving accidents. The linkage between marijuana and crime is absolutely false because, if anything, marijuana actually lessens aggressiveness in the user. Only â€Å"driving under the influence of marijuana† could be hazardous but it is far less problematic as drunken driving. (Ibid. ) Enforcing the ban against marijuana in the US costs the tax payers as much as $ 12 billion annually; it also diverts the energies of the law enforcing agencies that would be better served in fighting the spiraling crime rates in the country's cities. This is reflected in the fact that there have been nearly 6. 5 million marijuana arrests in the United States since 1993,3 far exceeding the total number of arrests for all violent crimes combined, including murder, rape, robbery, and aggravated assault. (â€Å"Marijuana Prohibition Facts,† 2004) Apart from the ‘direct' estimated cost of $ 12 billion that would be saved by legalizing marijuana, the government would also be able to collect a considerable amount of money by way of taxes. Moreover, de-criminalizing of the drug would eliminate much of the underground criminal network in the country that gives rise to numerous social problems such as spreading corruption and graft among the law enforcing agencies. It is unfortunate that policy makers and law enforcers have failed to learn the lessons of Prohibition of alcohol in the 1920s when a similar ban against alcohol had escalated crime to astronomical levels and deprived the government of much needed tax revenue. It would, therefore, not be wrong to conclude that the rationale behind the continuing criminalization of marijuana is based on false premises and difficult to defend. Most scientific studies have conclusively shown that marijuana is a far less harmful drug than alcohol and tobacco. The cost of enforcing the existing harsh laws against marijuana possession is unnecessary and diverts the attention of the American justice system, which would be better served in fighting violent crime and terrorism. As such, there is no reason why marijuana should not be legalized forthwith.

Mills-pennisula radiology program Personal Statement

Mills-pennisula radiology program - Personal Statement Example I have a strong passion for working at the hospital but I have not been able to achieve my objectives due to some licensing issues. I write to ask for your kind consideration since this is the only program that can help me reach my goal of becoming a radiology technologist. This is also in consideration of the fact that my dream of becoming a qualified and registered radiologist and to practice in this area wholly depends on my ability to work and be awarded a well recognized certificate from a reputable institution. Before joining MRI school, I worked with the United Airline for more than 9 years in different positions. For instance, I worked at the customer service where I interacted with the clients for quite some time before being promoted to the position of customer service supervisor. In this position, I was able to gain some skills such as management skills that involve being able to mobilize resources in order to ensure the organization achieves its targets. This position also involved interacting with the clients, and therefore my social interaction skills were greatly improved considering the fact that I need to have good communication skills. Due to my high adaptability and flexible nature, I was further promoted to the position of resource supervisor. Working in this position made me learn vital management skills; it made me learn how to manage resources such as time, materials, and people. I was entrusted with all the organizational responsibilities, all of which I was able to carry out effectively. Carrying out these responsibilities improved my leadership skills, communication skills, and my ability to lead and supervise subordinates effectively. I have also learned how to run projects from the planning stage to their completion since the organization had some projects to complete. I have also worked at the MRI clinic which gave me a realization that it means a great deal being in a

Management Perspectives on Leadership & Motivation Assignment

Management Perspectives on Leadership & Motivation - Assignment Example She is a kind of leader who looks towards every single matter with deep interest because she is of the viewpoint that negligence towards even a minor issue can result in big problems for the company. She wants to be fully aware of every single issue related to the company. She is also a transformational leader because she has always motivated her employees to show improved efficiency and productivity. She focuses on creativity and innovation. It is due to her effective leadership potential that has kept General Motors on a top position among auto manufactures in the very intense competition within this industry. From the interview, we realized that Ms. Barra has always tried to motivate others to do their best for the company. She motivates employees by making them aware of the benefits that they can receive upon the completion of their assigned job tasks. She has played her role in building the culture of respect and encouragement within the organization in order to keep employees satisfied with their jobs and motivated towards achievement of goals. She thinks employees as the most precious asset of the company and does everything to meet their needs which we think is the best way to keep employees motivated. Although she is both an effective leader and a successful manager, but we think she is more of a leader as she has a visionary outlook and is able to see long-term effects of any organizational activity. She possesses the ability to influence others using creative and emotional thinking powers of the right brain. She said that today employees are not usually satisfied with their jobs and employee turnover is high even when finding a good employment opportunity is not easy. According to Ms. Barry, keeping employees motivated and lowering the employee turnover are the two main issues for organizations these days. Refer to your Summary Table to complete this section. Provide a two to three page summary (single-spaced, please)

Assignment Essay Example | Topics and Well Written Essays - 250 words - 75

Assignment - Essay Example ticipation of clients on product trials includes compatibility with current use, complexity, relative advantage of the product, communicability, and divisibility. The Hot cider beverage offered by the business meets high compatibility and relative advantage factors of trail barriers allowing the business to offer sampling and product testing within the first two days. To induce trial, free samples will be available for the consumers resulting in no economic and experience cost to the customers allowing them to participate in the trial. Skimming will be used to ensure high market share is gained early during the launch stage, meet the market needs of the product but within the means to ensure the business is not priced out of the market. This will be compensated through the provision of excellent customer service, quality goods, and the best customer experience t the stall. Different measures will be used to stimulate repeat purchase in the market including ensuring the adequate supply at all times to meet anticipated repeat clients to avoid disappointing them. Offering quality customer service and being responsive to the needs of the customers coupled to the quality products will be the other measures that will be harnessed to ensure access of repeat customers. The other measure through which the business will ensure repeat customer is offering of long discounts to allow the consumers to have access to the products at slightly lower

Letter to Law Client Personal Statement Example | Topics and Well Written Essays - 750 words

Letter to Law Client - Personal Statement Example Incorporating does have other benefits as well, including many tax benefits. For instance, some sole proprietors are required to pay the federal tax rate and a self-employment tax, meaning you are being taxed twice; corporations are never allowed to do this. In response to your questions regarding Bubba, there are a few causes for concern here, but a few issues that may still keep you in the clear. First, Bubba is not a regular employee; as you stated, he came down to help out with some extra work. Second, you did not tell Bubba to do this; you gave him different directions. If Bubba is willing to admit to this, then you may safe and the responsibility may fall on him. However, the medical bills are truly an issue-if one person injures another person it is generally required that the person that caused the injury pay for the medical bills of the other. Next, these individuals were clearly blocking the entrance to your place of business, which is very close to trespassing. It sounds like they were still on public property, however, and the actions of Bubba are still an issue-had he asked them and they refused, calling the police would have been a better alternative. Still, the situation does not mean you necessarily have to go bankrupt or lose everything, or even lose the business itself. If these individuals have health insurance, they may only be asking for their deductibles to be paid. Therefore, this may amount to only a few thousand dollars. Also, it depends on the extent of their injuries. If any type of surgery is involved, this will certainly be expensive. However, if it is just a few bruises and broken bones we are concerned about, the issue should not cost as much. If Bubba is not willing to take the blame on his own, because he was there on your accord, the liability very well could fall onto the restaurant, and again, some kind of payment will probably be expected. There are a few things that you can do in this issue in order to prepare yourself. First, I would suggest incorporating as quickly as possible to protect all of your personal assets. This way, only the business, and not everything else, is at risk in this case. Second, I suggest talking to Bubba and seeing how far he is willing to go to assist you with the situation. Third, it may be wise to talk to the people or their attorney, and find out what kinds of medical issues and bills are being considered. It may be easier and less costly to simply settle with the people and pay for their deductibles rather than going to court and possibly spending much more money. Also, if this is done, it is very unlikely that these individuals will have any reason to take the business away. Therefore, my suggestion is to reach out to start the incorporation process, and then to reach out to these individuals to see what can be done to resolve this issue. Taking these steps will probably save you from losing your business, or losing anything else at the expense of Bubba. Thank you and please do not hesitate to contact me if you need

Social intelligence Assignment Example | Topics and Well Written Essays - 1000 words

Social intelligence - Assignment Example They should be aware of the unspoken setting patterns, social regulations, and paradigms that govern different situations. Appreciation of various views from people and an understanding of the way these people react to uncertainty, stress, and conflicts should be part of a leader. 2. Leaders should be present This is the way a leader affects groups or individuals through his or her body language, physical appearance, how he occupies space in his office, as well as his demeanor and mood. Leaders ought to have listening skills to create a quality of effectiveness self assurance that allows them to relate well with others. 3. They should be Authentic Authenticity reveals how sincere and honest leaders are with themselves and with the rest. According to Albrecht, when leaders respect themselves, believe in their personal faiths and values, and are realistic, they will probably serve others with authenticity. In this context, authenticity entails the capacity relate genuinely with others, a value that demands compassion and empathy. 4. Leaders should be clear Clarity means that leaders should express their opinions, thoughts, intentions, and ideas in a clear way. They should understand the power of language as a means of expression and thought, and thus use it as a strategic asset. Leaders with high social integrity clarity can monitor their language patters as well as that of others, in order to avoid particular pathologies that can result to personal and collective disputes, misunderstandings, and maladjustments. 5. Leaders should embrace Empathy They should look at how considerate and really aware they are of how others feel and how capable they are to treat other people as unique persons. It is all about identifying with those who are below and sharing or appreciating their feelings. Albrecht views this strategy as a sense of connectedness and a state of positive feeling or rapport between two people. Protecting oneself from toxic personality Toxic personality o r behaviors are those which make others feel inadequate, angry, guilty, devalued, and frustrated. If one of my family members has these personalities, I can protect myself from letting his negativity by using the nourishing behaviors. I can do this by analyzing the few positive traits of my sibling, and how important he is in my life, such as by determining what critical roles he plays in terms of my overall composure and well being. If he has a value that may bring the best in me such as paying my school fees, even though he is harsh or abusive, I can ignore the â€Å"grenade† side of him and appreciate him in the well-being point of view. Proximity interaction zones and non-verbal cues According to Albrecht, social intelligence involves correct interpretation based on social signs of nonverbal behavioral cues and generation of non-verbal cues displaying social signals suitable in a given situation (Albrecht 2005). If I enter in a room a â€Å"Mix and Mingle† Business and people are already talking in groups, I would introduce myself by expressing some sense of happiness through a genuine smile. The second step will be to make an aye contact with the person close to me, a nonverbal cue that will engage the gathering and show my interest in participating in the discussion. For any leader who might get himself in a situation like mine, I recommend that he should first of all learn how to use positive body language signals. If people

Personal Project Essay Example | Topics and Well Written Essays - 2000 words

Personal Project - Essay Example Initiation of a new venture has various advantages as well as disadvantages. For example, with the introduction of a new venture, an individual can make more capital and have own freedom (Hultman and Shaw, 2003). On the contrary, initiating a new venture involves huge financial risks and along with that one need to take extra burden of work so as to get success. Yet, individuals explore this avenue so as earn money, respect and at the same time carry out some social works (Carson, Cromie, McGowan and Hill, 1995). In our case, the business chosen was restaurant business. The company was named as E-Food Restaurant and positioned to capitalize on the opportunities arises due to the changing consumer needs. The USP (unique selling proposition) of our restaurant is customer tailored and fresh meals. In addition, the location of our restaurant coupled with large seating capacity acts as a competitive advantage to the firm. The products of our restaurant are mostly inspired from the British culture and wildlife (Hultman, 1999). The launching of our first restaurant business is a part of our long term plan and to drive change in the industry. However, the process was not easy enough and we had to pass through various complexities before reaching this stage. In this report, I on behalf of our company would like to reflect upon the steps that we went through in establishing and running the company through the competition & the decisions that were made during the competition and their outcome. In addit ion, this self reflection report also proposes to shed light on the overall experience and knowledge that we have gained from the module. Lastly, a conclusive statement will be drawn regarding our overall experience and the things we have learned over the years. Our business also took the steps as other businesses usually take before venturing into a business. Likewise, any other business, our

Mill vs. Raz Essay Example | Topics and Well Written Essays - 1000 words

Mill vs. Raz - Essay Example Guided by 'one very simple principle' he outlines an argument for a system, which he believed, provided the best possible environment for individual and social progress (Mill, 1991, p.30). Mill advocates for human's shortcoming and their incompleteness of knowledge, which means that the "truth" is not always the truth. Based on Mill's assertions, any one group who attempts to coerce another group or individual is breaching individual liberty, which leads to the stagnation of the intellectual community. The key to progress lies in the condition of seeking the best span of human experience and development. The individual in the Millian liberal society is engaged in 'experiments in living'; attempts to find "new, deeper or merely different sources of happiness in life", uncoerced by the state or fellow individuals. (Ryan, 1991, p.166) The most important aspect of well-being is to note that the individual has complete authority in matters regarding themselves, society does not have the r ight to restrict the individual, as long as the actions of the individual is not causing harm to themselves or others. Liberty is, therefore, an integral component of well-being; liberty provides the best possible conditions to achieve the "permanent interests of man as a progressive being." (Mill, 1991, p.31) In Joseph's Raz's The Morality of Freedom, his theory does not rest on a human being's fallacies but instead he argues that the individual's w... Raz creates an idea of the individual's well-being results from not just one being but that individual's situation within a culture, history, and society. He makes the simple argument that if a government can make a universal decision to prevent murder, then the state can act in defense of moral reason. Raz states that 'governments should promote the moral quality of the life of those whose lives and actions they can affect.' (1988, p.415) He advocates that the individuals will adapt to society's preferences and then will be able to have a good life, striving for well-being. Raz declares that the importance of a liberal society does not rely on the individual choice, as it does for Mill, but instead the individual should be able to choose between various alternatives that have been determined and supported by the society where the individual resides. A person's well-being should not be dependant on how the individual lives their life and how they determine their actions to be of vale but rather their well-being rests on how living a life is valuable independent of how it helps the individual. As he explains, an "autonomous life is valuable only if it is spent in the pursuit of acceptable and valuable projects and relationships." (1988, p.417) To best illustrate Mill and Raz's ideals for an individual's well-being take for example an person's addiction to alcohol. Through Mill's theory, the demand and priority for an individual's liberty in this self-regarding conduct and the belief in human experimentation does not accrue any benefits for the individual. It is highly unlikely that the majority of individuals will benefit from a life influenced by drugs. Raz on the other hand argues that the life of a drug addict is clearly inferior in terms

Money Saving Tips for College Students Essay Example for Free

Money Saving Tips for College Students Essay As for any college student the usual expenses of; school, personal life, food, entertainment, and leisure activities is enough to make you broke or for most of us, in debt. It is Thursday night and the weekend is here but your wallet is full of bank receipts and there is not any cash to been found. Your friend just told you the agenda for the night which involves; dinner, pre-game, party, and then night club. Chances are your staying in for the night unless you have a hidden supply of cash under your bed. This type of scenario is all too common for most college students, which is why I am going to explain in detail how to save and manage your money more effectively. With becoming better educated on how to manage your money properly you will be shocked at the amount of cash you can save. The following tips will help you to save money in the following areas of your college expenses; money management, organization of money, personal life, decision making, jobs, entertainment, leisure activities, food, dating, tuition, and books. Learning how to manage your money and having the proper knowledge on which banks to use with your money is an important part on saving your money. The following bullets will explain in detail on how to effectively manage your money: 1) Track your expenses – By tracking your expenses for 2 weeks to a month will allow you to have a better understanding where your money is going. Are red bulls at the 7-11 and a cappuccino at Starbucks 4 times a week actually needed? You will tend to realize the amount of money wasted on small items that are not necessary. Just by tracking your expenses you will begin to manage your money more effectively. To keep better and more organized track of your money, using a notebook or quicken are great tools to being better organized. Having good records prevents you from spending what you do not have and from over drafting your account. 2) Budget your money – The best way to manage your money over a period of time is to create a budget. Take the time to sit down and look at your incomes and expenses. Examples of income are scholarships, paycheck if working, loans, money saved throughout summer and money from your family. Examples of expenses are books, food, rent, bills, tuition, and entertainment. Create a list of your incomes and expenses, and then decide a way to budget your money from either week to week or month to month. It is important to pace yourself when putting yourself on a budget. If you spend all of your money in the beginning of the month, you will be stuck eating leftovers from the cafeteria for the last week. In addition, it is important to provide yourself with money for leisure and entertainment. You are a college student, it is refreshing to buy yourself something new or have a good time every once and a while. Putting your money on a budget will help you to manage your money very effectively. Remember, you don’t always have to spend the amount you budget yourself. Also, planning ahead is essential when you are properly managing your money. If you know that soon you will be going on a vacation, paying your car insurance, or just an expensive weekend; placing aside $50 a week is more reasonable than coming up with $400 at once. 3) Choosing a bank – Join a credit union. Credit unions are set up as non-profit so they do not charge those high interest rates and hidden fees as, for example, a Bank of America would. Also, look into online banking, this makes for a fast easy to use way of banking. ) Credit Cards – The most helpful tip that I can give to a college student would be to stay away from credit cards. Do not fall into the traps of free giveaway sign up booths, those guys trying to sign you up are only trying to take your money. The reality is that credit card companies see college students as suckers. That is why credit companies swarm campuses and make getting a credit card so easy. These credit companies also charge a high interest rate on these cards. The average interest rate is 18%; this means you will have to pay back an additional 18% on whatever you may purchase. The higher the interest rate, the harder it will be to pay off your bill. It is like a chain reaction that will just continue to bury you in debt. As you can only afford to pay off the minimum, the interest continues to gain as the bill continues to rise. To avoid this, it is important to avoid the temptations that come with having a credit card and to also try to make more than the minimum monthly payments. Although, having a credit card for emergency situations and to build up your credit for the future can be very beneficial. However, for college students reaching for that Visa can be a very hard habit to break. In addition, credit companies will give you a credit line well higher than what you may need. They may set you at a $5,000 credit limit, when you may only be able to afford $1,000. Just call the credit company and tell them the price you would like your credit line set to. With having a credit card it does not mean you can buy whatever you want. It is important to be realistic and to understand what you can and cannot afford. Most expenses tend to occur in the beginning of the school year. To plan accordingly for this, saving money while working your summer job would help to cut the cost of initial expenses. When coming back to school, books and various items for your apartment/dorm are going to be quite costly. To cut cost on buying books, it is often cheaper to buy books offline or off a friend. Buying books online can be easy and up to half the price that it would be in the bookstore. One downside to buying books online is the amount of time it can take for shipping, so be sure to place your order as early as possible. You may also have some friends who have had the same classes before you, buying a book off a friend who is not going to use it anymore can save you a good amount of money. With having the power of the credit card, it is important to keep a focus on what is important. You want to keep your expenses to either academic or personal essentials. It might seem as if the new PS3 is just the item to place on your credit card, but I can assure you it is not. If this may seem as an essential to you then place aside money each week to save and buy that PS3 with cash. When purchasing anything remember cash is king. For most college students; the pressures of going out on the weekend, taking a girl out to dinner, having the latest technology, and still trying to save money can be quite the challenge. Now remember, you’re in college and on your own now, you don’t have your mother yelling at you to brush your teeth before bed or to clean your room. This is an opportunity for you to begin working on your self-discipline. Having your life in order and maintaining a clear head are two things that college students tend to lose sight of. Making the right decisions when it comes to your personal health and responsibilities is an important part of self-discipline. Within this section of personal life I will relate how staying active, eating healthy, nd enjoying your social life can help you to better manage your money. Everyone is in college to better their future and to get prepared for the real-world, but just as any college student, you want to make the best out of your time here. 1)Staying focused and active – Living in dormitory or even in a house with eight roommates, you become very susceptible to catching different illnesses. By staying active and working out or excising several times throughout the week, your immune system will become stronger and fight off most illnesses. Staying in good shape also helps with increasing self-confidence, energy throughout the day, and keeping your mind active and positively focused. In college it is easier to gain the weight than it is to lose if you fall into the outside pressures of drinking, eating fast food, and sleeping all day. With keeping the self-discipline of staying focused and active it helps to keep a clear head which in return will help you to decide what expenses are important and what is a waste of your money. 2)Healthy diet To stay fit and keep your body in good shape, your diet is just as important as your workout. By going to the grocery store once a week and purchasing vegetables, fruits, meats, beverages, and carbohydrates can help you to save close to an additional $50-$100 a week. Not only is cheaper to purchase food at the grocery store but it is much healthier than ordering out or eating fast food. To cut the cost on buying groceries, divide the cost by you and your roommates, buy and share the food. In addition, you will receive more for your money when you purchase weekly groceries. To get the best prices for quality products, look through the newspaper ads for each supermarket and plan out where you can save the most money. Cut back on buying junk food, it is often expensive and is not healthy. If you do decide to eat out, college towns often have restaurants where you order and serve yourself, this cuts on the cost of leaving a tip. The only problem that some college students might have is that they do not know how to shop at the grocery store or how to cook the food. This is where it might be helpful to make a phone call home and get some instructions from your mother. For those that can cook and shop at the grocery store, this is a great way to get more for your money as well as maintain a healthy diet. )Social life – This is often times confused for the reason as to why you are in college. While it may be easy to fall into the trap of going out every weekend and living the party life it is essential to keep focus as to why you are in college. You are here to get an education and better yourself, not to blow all your money on partying and fail out. This is where the significance of self-discip line and managing your money properly should take first priority. Everyone likes to have a good time and enjoy themselves, it is important to keep things in moderation. Learn to limit your vices or â€Å"stress-relievers† (as some college students say) such as, beer, cigarettes, and etc†¦ These vices can be expensive and costly to your health as well. By keeping to your budget and using the allotted amount you give yourself a weekend you can enjoy yourself and still save money. Here are a couple tips on how to keep the expenses of your weekend nights to a minimum; †¢Have a meal before you leave to go out. Leaving the house/dorm hungry can cost you a lot of money that you may not have. †¢Leave your debit card and wallet home. Only bring the money you can afford for the night and your id. This will help to fight the temptations of buying unnecessary items, especially if you are under the influence. †¢If you have friends that have an unlimited bank account and spend lots of cash, try to avoid them and hang with friends that relate to your financial status. You don’t need to spend a lot of money to enjoy yourself in college. The following is a list of inexpensive activities and entertainment for any guy or girl student who is looking to save money and enjoy their social life as well; †¢Newspapers offer listings of inexpensive or free events that are going to take place in your city/town †¢ Going to matinee movies School events, such as sporting events or clubs †¢Spend a day at the local park, go for a walk or fly a kite †¢Bicycle rides with a friend †¢Spending the afternoon baking and relaxing †¢Grab a couple friends and play sports at the school gym †¢Coffee shops often have free local bands play at night †¢Afternoon flea market †¢Depending on the season, apple or pumpkin picking for Halloween, Christmas shopping, Easter decorating or designing eggs, etc†¦ †¢Art gallery Student newspapers often give listings of free events or activities that are taking place around campus †¢Play video games with friends, create tournaments and play for bragging rights †¢Get involved in intramural sports †¢Ladies usually get into clubs for free and get drink specials †¢Go to bars with no cover charge and that have drink specials Throughout college you are going to meet a number of different people, some you will like more than others, and for those you do, you may find yourself taking him or her out on a date. Now for most people, saving money and dating are two notions that don’t connect. For most, on a first date you try to impress and give off the perception that you are not broke or even worse, cheap. To the disbelief of many, dating does not have to be expensive to be impressive, entertaining and unforgettable. Remember, you are trying to stick to a budget and with all other expenses it is challenging enough. The following bullets will explain how to have fun on a date without spending all your cash. †¢Mother Nature – It is all around us everywhere we go, natural scenery is different at every campus and usually the beauty goes unnoticed. A great idea for when the weather is nice is to take him or her down to Narrangansset or Newport and go for a walk on the beach. Take a walk around city blocks and stop somewhere there is nice view overlooking the city. Take time to find these spots at which ever campus you are, this can be extremely cheap and give quality time to build a better relationship. †¢Picnic A picnic in the local park is always a great idea. Bring sandwiches and beverages, it shows that you took the time to actually prepare something. This costs minimal as to what you spend at a restaurant and can be taken almost anywhere. Depending on the mood you are trying to create, you can make a picnic either casual or romantic by adding a few extra accessories. †¢Sporting events – If you get so lucky to find a woman who is interested in sports, this is a great opportunity to either play a sport together or to watch a sporting event at your school. This also allows you to spend quality time with one another as well as have a good time while saving your money. †¢Experience culture and history – In this city there a number of historical buildings, museums, art galleries, cultural centers and landmarks that are either very cheap or free. Often times, there are exhibits that are off campus that have reduced or free admission for college students. This is good for a date on a more intellectual level and gives time to get to know each other as well as the area you are in. †¢Dinner at home – For those of you who are culinary skilled, this is a great opportunity to impress your date and to save the cost of going out to eat. To make the date more interesting, cook the meal together and combine ideas. After the meal, this is a chance to hang out and watch a movie or play a game. This is a great date idea to impress and really have a good time. Miniature golf/go karts – This makes for a great afternoon date and adds a little excitement. Racing each other and fooling around on the race track provides a fun time for one another. In miniature golf, a friendly competition allows to make things more exciting and to fool around. †¢University events – In the school paper, there are listings of events that are taking place for the following week. Usually events are free or reduced admission, which includes concerts, art exhibits, guest speakers, and plays. This can make for a quality date as well as save you money. †¢Coffee houses – Stop at a local coffee shop to relax and have conversation. Coffee is much cheaper than a meal at a restaurant and provides the relaxed atmosphere to get to know each other better. Also, order a dessert and splitting it provides for a romantic experience. Making Money I’ve saved the best for last. If you can master even one of these, you’ll have a head-start on your friends. Master all four, and you’ll be on the road to wealth. No kidding. †¢Spend less than you earn. Don’t earn much? Then don’t spend much. If your spending and income are roughly even, you have two choices: earn more or spend less. When I was in college, I worked as many as four jobs at once. This gave me a lot of spending cash. (Unfortunately, I didn’t do a good job with the spend less part of the equation. ) †¢Be an outstanding employee. Good work habits can pay enormous dividends, leading to recommendations and contacts that you can use after you’re out of school. Several of my classmates turned work-study jobs into launching pads for future careers. †¢Start your own business. Can you install a hard drive? Can you strip a computer of spyware? Can you perform minor car repairs? Do you have a pickup truck you could use to haul furniture? Are you a passable guitar player? Charge cheap rates and exceed expectations. Word will spread. When you’ve built up a customer base, you can raise your rates a little. This is an awesome way to make money. Learn to invest. Find a discount broker and begin making regular investments. Sharebuilder is a great choice for college students. It costs only $4 to make a scheduled stock purchase, and you can invest any amount of money, even $20. Don’t obsess over the details yet. You can worry about high returns and low fees later. Right now the most important thing is to develop the investment habit. (Ad: Buy Stocks for $4 at ShareBuilder. Ten years from now, you’ll thank yourself. If you can find a way to invest $1000 a year for the next ten years, you can set yourself up for life. Organization and Planning Save your receipts. Put them in a shoebox under your bed if you must, but hold onto them. You’ll need to be able to compare them with statements at the end of the month. And some you’ll need to keep for several years. Guard your vital stats. Don’t give out your social security number or your credit card info except to known and trusted sources. Pay your bills on time. Basic advice, but it’s surprising how many people lose track of things. If you pay your bills as they arrive, you won’t have to worry about forgetting them. Tuition Expenses †¢Try looking for scholarships. You may think that youre no longer eligible for scholarships since youre a college student, but this isnt true. Your school or other foundations may offer scholarship programs that can save you loads of money on college tuition. For further information you may want to try www. findaid. org or www. college-scholarships. com. †¢Shop around for student loans. Just like choosing a credit card company, you should try going to different banks to see what types of interest rates are available. You may want to choose the type of loan that begins charging you interest after youre finished with collegenot the type of loan that charges you interest while youre in school. Other Expenses †¢Shop around for a reasonable cell phone plan. Try to find a plan that works best for the type of calls you make the most. Do you call your family or friends most often? Do you need a long distance plan? Do you text message often? †¢Try filling your prescriptions at your schools health center. Sometimes campus health centers will fill your prescriptions for a fraction of the cost of a regular pharmacy. See a doctor on campus. If you feel sick, you may want to consider seeing a doctor or a nurse practitioner on campus. These services are often free. †¢Bike, walk or take the bus to school. These alternatives may help you save money on gas and alleviate some of the stress you may experience trying to park on campus. †¢Go to the on-campus gym. Access to this gym equipment is usu ally free. If you want to take group classes, however, be prepared to pay a fee. http://www. getrichslowly. org/blog/2006/08/30/27-money-tips-for-college-students/

The Private Pension Industry In Ghana Accounting Essay

The Private Pension Industry In Ghana Accounting Essay Ghana, a role model in terms of economic and political stability has recently been upgraded to a middle-income country following years of implementing sound economic policy and stable political environment and with this upgrade comes its own challenges. Ghanas economy is strong and promises generous future growth and the need for a much more comprehensive social security system is understood to be of great importance. In 2004, the government started a journey to reform the social security/ pension system and these reforms created an opportunity for the participation of the private sector in pension delivery. This proposed business plans seeks to establish a trustee company, which will provide pension related products to the formal and informal sectors of the Ghanaian economy who have traditionally been excluded from the national pension system. The private pension industry is a new and virtually untapped industry offering an opportunity to serve a large proportion of Ghanas workforce, as this section of the working class is key in the success of developing a comprehensive pension system. This industry is estimated to be valued at GHS and will insist of 2nd tier and voluntary 3rd Tier pension system. The national pension scheme has seen an average annual increase in contribution of 10%. The target market for the proposed business is a young adult between the ages of 16 and 45 years. The target market will consist of young professionals, self-employed individuals and those who traditionally do not have access to the national pension scheme namely hairdressers, mechanics, etc. With the growing appreciation of securing ones future, the target group demand quick and efficient services, products that meet their existing and future needs and an industry that responds quickly to their needs. Currently, there is no existing service provider in the private pension industry however the life insurance industry is expected to lead the way and be the dominant players in the provision of these services. The proposed business plan seeks to be consumer focus providing excellent customer services, constant customer feedback and innovative and simple product design and use. The competitive advantage of the proposed business include accessibility through the use of a comprehensive distribution network, excellent customer service and product design based on need. The proposed business is a private pension provider rendering trusteeship, custodian and fund management services. The company is a limited liability company with a proposed stated capital of GHS3, 000,000.00. Each of the business owners will raise GHS90, 000.00 each and the difference will be funded using bank credit lines, private investors and asset financing. Undertaking the proposed business plan provides the following findings: Ghanas economy remains positive and stable providing generous growth now and in the future New pension reforms and creation of new industry provides both threats and opportunity Vast untapped informal market available to the new industry Current shortfalls in the national pension will be catered for by private providers Proposed business provides opportunity for development of local capacity in pension design and management With robust regulatory system and effective strategic planning this propose business has a fair chance of succeeding and growing into a very successful business and being part of the development of the private pension industry in Ghana. 1.0 The Introduction Research Background and Motives Over the years concern had been raised about the current state of the Ghanaian social security system which has been characterized by inadequate benefits which is extremely difficult to live on if not mere impossible. As pointed out by the International Social security Association (2003), Social security systems in Africa are characteristically too exclusive and inadequate of which Ghana is not exception. Like other social security systems in Africa, Ghanas social security system covers only the formal workforce, which constitutes a small fraction, usually no more than 20% of the total labor force. This inherent characteristic of the social security system makes social security exclusive, as those outside the formal sectors do not have access to social security or a national pension. Furthermore due to the relatively small number of contributors to the national social security scheme, benefits under the social security scheme is inadequate. Ghana like many other African countries has institutions, laws and government structures that were adopted from their colonial masters without much modifications and thought. The institutional structures were most often designed to meet the goals and objectives of the colonial masters who at that time were the elite. One may wonder why social security systems that are meant to provide protection for all in society tends to cover only a small fraction of society. The international social security association points out that, most social security systems like many other things were adopted from the colonial masters. These social security systems were really intended to cover a small body of employees who were at the time working in the colonial administration and mine workers. This meant that all others outside this scope fell outside the social security system. This inherently remained, as most countries even after independence were unable to devise social protection programs that were tailored to the needs and circumstances of the people. Based on the background above, I am motivated through this business proposal to highlight the importance of the development of a much-needed private pensions scheme to augment the existing national social security system and also to provide those who are outside the national social security system an avenue to secure their futures and have enough to live on when they retire. 1.2 The Motives The motive for undertaking this business proposal is to bridge the gap created by the current social security structure, which excludes those within the informal sector of the Ghanaian economy. Secondly, private pension plans will also provide extra revenue to those who have retired as the current benefits under the national plan is woefully inadequate. At the end of this start up business proposal I hope to be able to: Understand current economic and business environment in Ghana Understand the structure of Ghanas social security system To analyze current regulatory framework in place and its likely impact on the operations of the start up To analyze the development of the chosen market and industry To determine the essential inputs for the start-up and future development plans To analyze any academic theory on successful business start-ups 1.3 The Objective The main objective of this business plan dissertation is to: Identify if any, opportunities and challenges for a private pensions company in Ghana With the opportunities I have identified and challenges write a start up business plan for a private pension company in Ghana Provide information on procedure to follow when setting up a company in Ghana In this write up the main focus will be on the company operating in one specific area of pensions which is the tier three of the pensions act. Long-term strategies may see the company evolve to extend other pensions/ savings products. 1.4 Research Methodology The aim of this write up is to put together a business plan for a start up private pension company in Ghana based on sound research on the subject matter of private pensions in the chosen market and academic theory on the principles entrepreneurship and business management. The research therefore will mainly be based on secondary data from credible governmental resources and non-governmental agencies. I will also make use of academic articles, journals and industry reports. 1.5 Structure The write up will be split into five (5) chapters with details of each chapter as follows: Chapter 1: The first chapter will have the introduction, which contains the background, the motives and objective, brief research methodology, structure of the write up and a comparative analysis of social security systems in the developed and underdeveloped worlds. Chapter 2: Economic Overview of chosen market, history and importance of social security in chosen market, overview of the social security system now and then, social security structure, and challenges facing the national social security system Chapter 3: Description of the business idea, marketing plan/strategy, pricing, mission and vision, Human Resources. Chapter 4: Chapter four will be the financial plan. In this section will include financial assumptions and financial projections for the next five years. Chapter 5: The conclusion, this section will contain exit strategies and also discuss any immediate or future impact of the proposed business on the Ghanaian economy. This section will also summarize key success factors of the proposed business. Chapter 2 Introduction Under this chapter I will look at the economic overview, economic performance and outlook of the chosen market for the proposed business, I will then go further to look at the development of social security/ pensions in Ghana, and then look at the overview of the social security system of the chosen market, Ghana. As earlier stated under my aims for this project, I seek to provide some insight as to what it takes to start a business in Ghana, therefore under this section I will also provide information or insight in relation to what procedures needed to follow when setting up a business in Ghana. 2.0. Economic Overview of Ghana The Republic of Ghana is a West African country with land area of 92,100 square miles, which is boarded by Cote DIvoire, Burkina Faso, Togo and Gulf of Guinea. Ghana has always been known as a country of great natural resources, hence the nickname, The Gold Coast. Ghana is rich in gold, timber, diamond and cocoa and has an economy that is heavily dependent on agriculture. Ghana remains one of the leading producers of Gold and Cocoa in the world. Agriculture in Ghana accounts for 37% of GDP and employs an estimated 55% of the national workforce. It must however be noted that agriculture is still largely small scale, non- commercial and not mechanized. Ghanas economy is one of the most stable and fast growing economies in Africa and has achieved impressive growth as a result of the discovery of oil and natural gases. With such impressive growth and relative stability in the macro-economic indicators, Ghana attained a lower middle-income economy status according to the World Bank, however youth unemployment and poverty continues to be a major issue. 25% of Ghanas youth are unemployed and 37% of the population currently lives on less than $1.25 a day. Despite a 14.4 % growth in Ghanas economy in 2001 according to the World Bank, Ghanas external debt over the last 3 years has increased by 125% from $8 billion in 2008 to $18 billion in 2011. In terms of investment, Ghana has Africas 3rd largest stock exchange with South Africa and Nigeria ahead of Ghana respectively. 2.1 Economic Performance and Outlook Ghanas economic performance over the last decade has been impressive. GDP average annual growth rate was 6% between 2005 and 2007, increased to 7.3% in 2008 but however declined to 3.9% in 2009 on the back of the global financial and economic crisis. Inflation increased by 41.7% from 12.7% in 2007 to 18.1% in 2008 however due to effective economic policies and austerity measures inflation for the last 3 years has steadily falling to its current rate of 9% as at 2011 for the last 9 months since. Increase in non-oil imports and income outflows widened Ghanas current account deficit by some 38% at the end of 2011. Despite these challenges, Ghanas economy has outgrown the global economy for the past 4 years. Whilst the global economy grew at an annual average rate of 3%, Ghanas annual average growth rate has been 6.5%. The adoption of austerity measures to cut public spending and the stability of macroeconomic indicators have helped Ghana survive probably the worst part of the global economic meltdown and it remains one of the most promising economies in Africa. Based on the indicators above on the economic health of the country, Ghanas medium-term growth remains positive, largely driven by investments in the mining industries, public infrastructure and commercial agriculture according to the World Bank. 2.2 Development of Pensions Scheme in Ghana Pension systems in Ghana date as far back as the colonial era. The first kind of pension system was introduced in Ghana in 1946. The pension system was a non-contributory pensions scheme and its aim was to cater to the retirement benefits of those who worked within the colonial administration and also included mine workers. Kpessa (2010) noted that Ghanas social security system at the time was designed, as a means of encouraging loyalty and efficiency within the colonial service as a result was quite exclusive. Like most programs introduced during this era, old age income protection policies were limited to urban dwellers especially Europeans and a few Africans working in the colonial bureaucracy. It was not until 1950, the Pension Ordinance No.42 (Cap 30) and Superannuation schemes was established in an effort to have a social security system in place that covered a greater portion of Ghanaian workers. It was established as a pension scheme for public servants in the Gold Coast. These schemes covered certified teachers, University lecturers and all government workers however a vast majority of Ghanaians were unable to benefit from this scheme (Adjei, 2000). In 1965, the Social Security Act (No. 279) was passed to cover all private and public sector workers who were not covered under the Pensions Ordinance No.42. The scheme initially started as a provident fund, providing benefit for old age, invalidity and survivor benefit. This Act was repealed and the social security and national insurance act (SSNIT) was established under NRCD 127. The trust was established to administer the new social security scheme. The scheme was later converted to a social security pensions scheme and in 1991 turned into a defined benefit scheme following the enactment of the Social Security Act 1991 bringing some level of adequacy into workers pensions. For a worker to qualify for old age benefit, the worker must have worked for a minimum of 240 months and be at least 60 years of age. Workers in the extractive industries such as mining however have a mandatory retirement age of 58 years under which they qualify for old age benefits. For workers who have been injured at work, they may qualify for payment under the invalidity benefit section of the social security system. Benefit is payable over a period of 12 months. If a retiree dies before reaching the retirement age his or her benefit is calculated as the present value of all contributions and paid to the surviving spouse or dependents. The Social Security and National Insurance Trust (SSNIT) has four major functions: Collection of contributions Record keeping keeping up to date records of all contributing members Processing and payment of benefits Pensions fund management 2.3 Overview of Social Security/ Pensions in Ghana A universal social security/ pensions scheme in Ghana has not been in existence for so long having been established in the 1990s; earlier forms of social security were exclusive. The Social Security Pensions Scheme (SSPS) was established in 1991 under the Social Security Law PNDCL 247 and under the trusteeship of the social security and national insurance trust (SSNIT). Twenty-five years prior to this, Ghana run a provident scheme established under the social security act of 1965 (Act 279). Under the 1991 scheme, the Social Security and National Insurance Trust collected the contributions of the Ghanaian worker. The Act provided for compulsory coverage for workers in establishments that employ at least five workers. An establishment with less than five employees had the option to join the scheme, but there was no compulsion (Kumado Gockel, 2003). However, the following categories of workers, although they employed more than five persons, were exempt by law from joining the scheme; members of the Armed Forces, the Police Service and the Prison Service; Foreigners in the diplomatic missions; and Senior members of the universities and research institutions. Funding of defined contribution schemes is based on contributions made by the employer and the employee on behalf on the employee. These contributions are invested and when the employee reaches retirement age, becomes permanently incapacitated or dies prior to retirement; the total contributions together with returns on the investment are paid as a lump sum to the employee or his/her dependents (Kpessa, 2010) Under the scheme the Ghanaian workers total contribution constitutes a total of 17.5% of his salary to the scheme towards his pension and the contribution structure is designed as follows: Employees 5% of employees salary Employer 12.5% of employees salary Total Contribution 17.5% of employees pay Under Ghanas pension scheme there are three basic benefits, which include Old Age Pension, Invalidity Pension and Death Survivor Payment. Pension benefits in Ghana are indexed annually using the average rate of increase in the contributions inflow from the previous year. This is done to prevent any distortions in the financial equilibrium of the scheme. In order to qualify for benefits under the pensions scheme one must meet the eligibility requirement and amounts payable under each section are as follows according to the Social Security and National insurance Trust: Old Age Benefit To qualify for old age full pension payment, a worker should have contributed to the scheme for a minimum of 240 months, which is equivalent to 20 years, and should have attained either the voluntary retirement age of 55 or compulsory retiring age of 60. The law applies differently to persons who have worked in hazardous conditions such as the mines. Such categories of workers under the law qualifies for a full pension at the age of 55 provided the worker has been engaged in such work for 240 months or more. The minimum pension payable is 50% of the average of the 3 best years salary for a minimum contribution period of 240 months. For any additional month served after the 240 months, a worker earns a pension right of 0.125%, i.e. 1.5% for every 12 months in addition to the 50% start off. Thus, a worker can theoretically earn up to 80% pension when he shall have worked and contributed to the scheme for 40 years. As earlier mentioned, workers who opt for early retirement at age 55 or retire anytime before they are 60 years are entitled to a reduced pension. Benefit due is calculated on an increasing scale from the age of 55 years, meaning that those who retire closer to the statutory retirement age receive a higher percentage of their full pension than those who dont. Percentages of full benefit due are as follows: Age 55, 60% of full pension; 56, 67.5% of full pension; 57, 75.0% of full pension; 58, 82.5% of full pension; 59, 90.0% of full pension. Pensions are paid monthly, however retirees have an option of receiving payment in advance equivalent to 25% of 12 years pension as a lump sum and subsequently be on a reduced pension. If a worker before attaining the age of 60 is unable to have contributed the minimum 240 months to the scheme he is entitled to receive all his actual contributions plus interest at half the prevailing interest rate on government treasury bills. DEATH/ SURVIVORS With regard to survivors benefit, if a contributor dies while still a member, his dependents qualify for a lump sum of the earned pension. When a member contributes to the Fund for 240 months before dying, a lump sum equal to the value of his pension for 12 years shall be paid to his survivors. If a member dies without having contributed to the fund for 240 months, the payment to his survivors will be his proportional pension for a period of twelve years. Where a member who has retired dies before he is 72, his survivors will be paid in lump sum the unexpired pension up to age 72. INVALIDITY PENSION To qualify for invalidity pension, a member shall have contributed to the Fund for 12 months within the last 36 months before becoming invalid. In addition, the member should have been certified permanently invalid and incapable of gainful employment by a medical board including 2.4 Parallel Pensions Scheme One may be tempted to think that the pensions scheme being administered by the Social security and national insurance trust covers all workers in Ghana, however as indicated above some sections of the working public are exempt from the national pension scheme. This is because such workers are covered under a different pensions scheme with pre-dates the national pensions scheme. The scheme, which is affectionately, called CAP 30 (name derived from Chapter 30 of the Pension Ordinance of 1946) provides pensions for Civil Servants and the Armed Forces and some teachers. Today there are still members of these working sectors who are covered under CAP 30. Such members contribute 5% of their pre-tax salary, which is nevertheless not saved but recycled into the Consolidated Fund. However, it is still a non-contributory plan for the armed forces, the police, and the prisons services. These employees take home all of their earnings; no deductions for pension coverage. This aside there are other features of the CAP 30 that offers superior value as compared to the Social Security and National Insurance Trust including: 10 years for full retirement vs. 20 at SSNIT; 70% of final salary compared to 50% of average of three highest years salary at SSNIT CAP 30 pension payments are indexed annually to current salary scales Ghanas social security system lacks cohesion as evidenced in the disparities that exists under the SSNIT and CAP 30 an there is an urgent need for the harmonization of the social security system in Ghana by replacing the current systems with a comprehensive all inclusive system 2.4 Pensions Reform in Ghana and overview of National Pensions Act 2008 Over the years concerns have been raised about the disparities and seemingly greater benefit under the CAP 30 as compared to the Social Security and National Insurance Trust (SSNIT) pensions scheme. Public sector workers further agitated over the inadequacies of the current social security benefits and its inability to sustain a respectable life during retirement. Furthermore, the current social security system has failed to include those in the informal sector who constitute about 80 percent of the working force. The road to social security reform in Ghana began in July 2004, to provide a universal pension scheme for all Ghanaian workers following the agitations described above which lead to the drafting and passing of the National Pensions Act 2008. The Act is divided into four parts; the first part talks about the establishment of a National Pensions Regulatory Authority that will be responsible for the regulation of pensions schemes in Ghana as well as a three-tier contributory pensions scheme. The second part deals with the basic national social security scheme; Part Three provides for occupational pension schemes, provident fund and personal pension schemes and management of the schemes and finally the general provisions of the Act is contained in part four. According to the Social Security and National Insurance Trust, under the new Pensions Act 2008, there is a three tier contributory scheme, which replaces the current Social Security Pensions Scheme and CAP 30. Under the new scheme a total contributory amount of 18.5% of a workers monthly salary will be paid towards their pension and this is distributed between the first two tiers. The first two tiers are mandatory and the third tier is voluntary. Below are the features of each tier: First Tier The first tier is the basic national social security scheme, which incorporates an improved system of SSNIT benefits. This tier is mandatory for all employees in both the private and public sectors. The mandatory basic national social security scheme is to be managed by SSNIT. Contribution to the first tier will be 13.5% of an employees monthly salary. Whilst this tier is mandatory for all employees in the public and private sectors, self-employed members of the working class have an option to join the scheme and are under no obligation to do so. Of the 13.5%, 2.5% will be deducted and transferred to NHIF. Benefit due under this tier will be calculated using the average of the highest 3 annual salaries ÃÆ'- 50% +1.5% of every additional 12 months contributed. A contributor under the first tier cannot be less than the age of 15 and not older than the age of 45 years when joining the scheme. Second Tier The second tier is occupational (or work-based) pension scheme and it is a mandatory scheme for all employees, however this tier will be privately managed. This tier was designed primarily to give contributors higher lump sum benefits compared to what is presently available under the SSNIT or Cap 30 pension schemes. A total of 5% of an employees monthly salary shall be allocated to the second tier provided the employee falls within the age limit stipulated under the first tier. If the worker however, falls outside the stated age limit, all of the 18.5% contribution shall be transferred to the second tier. The voluntarily provident fund and personal pension schemes are to be managed by approved trustees, licensed by a National Pensions Regulatory Authority and pension fund managers and custodians, licensed by the Security and Exchange Commission and registered with the Authority. Under this tier a defined benefit is payable to a retiree, spouse or dependent after termination of service, retirement or death. Third Tier The third tier is a voluntary provident fund and personal pension schemes, which provides tax benefit incentives for workers who opt for this scheme in addition to the first two. As earlier mentioned, the previous pensions scheme was relatively exclusive and did not provide cover for 80% of Ghanas working population. The introduction of the third tier is an effort to address the issues concerning the old pensions system, which by design excluded those in the informal sector and did not provide avenue for the citizenry to arrange their personal pensions in addition to the state pension. The aim of the third tier therefore I believe, was to provide those in the informal sector to have their future secured by contributing to a private scheme and also provide those already covered under the national scheme to augment their existing benefits should it still be seen as inadequate. This tier is fully funded and is also privately managed by licensed trustees that will want to provide private pension schemes. 2.5 Governance A National Pensions Regulatory Authority (the Authority) has been established to regulate both public and private pension schemes in the country. The Authority will approve, regulate and monitor Trustees, Pension Fund Managers, Custodians and other institutions relating to pension matters. To ensure that contributors interests are adequately protected, the National Pension Act has in-built safeguards. These include stringent approval and registration criteria by the Pensions Regulatory Authority; separation of functions of Trustees, Fund managers and Custodians; on going monitoring among several others. Trustees licensed by the Authority would be required to take out adequate insurance to indemnify scheme members against any losses of scheme assets caused by malfeasance or misconduct of the trustees or their service providers. Among other impacts, the new scheme will ensure improved living standards of the elderly; financial autonomy and independence of retirees; increased national savings and availability of long-term funds for economic development; and the Promotion of growth and development of the capital, mortgage and insurance markets. CHAPTER 3 THE BUSINESS IDEA AND PLAN 3.1 Background In 2004, the government of Ghana started the process of reforming Ghanas pensions system and in 2008 passed the National Pensions Act 2008, which saw the birth of a new pensions system in Ghana, the establishment of a new pensions regulatory body and most importantly the participation of the private sector in the delivery of social security in Ghana. The opportunity presented through the National Pensions Act 2008, is what has motivated me to write this business proposal for the establishment of a pensions trust in Ghana to participate in the third tier of Ghanas pensions System. The new pension scheme will comprise two mandatory schemes and a voluntary scheme as follows: First tier which is a mandatory basic national social security scheme will be managed by the Social Security and National Insurance Trust (SSNIT) Second tier occupational (or work-based) pension scheme will also be mandatory for all employees but privately managed by approved and licensed trustees Third tier voluntary provident fund and personal pension schemes, supported by tax benefit incentives to provide additional funds for workers in both the formal and informal sectors who want to make voluntary contributions to augment their state pensions benefit. The Second tier and the voluntary third tier will be privately managed by approved trustees licensed by the Pensions Regulatory Authority with the assistance of pension fund managers and custodians registered by the Authority. It is within the third tier that a business opportunity exists for the establishment of a trustee company that will provide pension products to individuals and organizations in Ghana. 3.2 Benefits of the New Pensions Scheme The new pension scheme offers a number of benefits above the old system. According to the Social Security and National Insurance Trust (SSNIT), workers within the formal and informal sectors stand to benefit from the following under the new pensions scheme: Provision of Superannuation: Reduction of contribution period from 240 months to 180 months Full benefit increased from 50% of the average of the highest three years earnings to 80% Provision of healthcare premium for all contributors to social security pensions scheme Occupational Scheme: provides lump sum benefits to contributors after attaining the age of 50 years. Survivors benefit calculations increased from 12 to 15 years Using lump sum benefits under the second tier to secure mortgages meaning workers can obtain their own houses by using their lump sum benefit as collateral Better controls over personal pensions under the second and third tier