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Retired MPs need a pension scheme – Majority Leader advocates

Majority Leader and Leader of Government Business in Parliament, Mahama Ayariga, has called for the establishment of a pension scheme for retired Members of Parliament (MPs), arguing that their years of service should be recognized with financial security in retirement.

Speaking on the floor of Parliament on Wednesday, January 29, 2025, Ayariga emphasized the need for a structured pension system to support MPs who leave office, whether by electoral defeat or voluntary retirement.

“Parliamentarians dedicate years of service to the country, often at great personal and financial sacrifice. It is only fair that we provide them with a dignified retirement,” he stated.

According to the Majority Leader, the current system fails to recognize long-serving MPs appropriately, treating their service as a mere four-year contract. “We have MPs who have served for over two decades, yet when they leave, there is no pension scheme befitting their status and contributions,” he lamented.

Ayariga also dismissed the perception that all MPs retire wealthy. He noted that many leave Parliament without sufficient financial security, making them vulnerable to hardships. “Not every MP exits with substantial savings or business interests. A structured pension scheme will prevent financial distress and reduce the temptation of corruption while in office.”

Citing international examples, he pointed to pension schemes for legislators in countries like the United Kingdom and Kenya. “The UK has a defined benefit pension scheme for its parliamentarians, providing stable retirement benefits. Kenya’s system, funded by the government, also ensures MPs are catered for after service. Ghana should not be an exception.”

To fund the proposed pension scheme, Ayariga suggested an innovative approach that would not burden taxpayers. He proposed leveraging Ghana’s carbon credit revenues. “Rather than relying on state funds, we can allocate a percentage of carbon credit earnings to finance MPs’ pensions,” he explained.

He outlined how Ghana’s participation in global carbon markets could generate revenue through afforestation, renewable energy projects, and emission reduction initiatives. “A well-structured carbon credit system can sustain MP pensions while promoting environmental sustainability,” he noted.

Beyond financial security, the Majority Leader believes the initiative will encourage parliamentarians to take climate policies seriously. “If MPs know their future pensions depend on a strong carbon market, they will be more invested in passing laws that drive climate action.”

He acknowledged potential challenges such as fluctuating carbon prices and regulatory compliance but insisted that with proper governance, the proposal could work. “With transparency and accountability, we can establish a model that secures MPs’ futures without placing extra pressure on public funds.”

Ayariga urged Parliament to consider the proposal critically and work towards implementation. “This is about fairness, dignity, and strengthening our democracy. A financially secure legislator is more independent and less susceptible to undue influence.”

He assured that consultations with key stakeholders, including the Finance Ministry and environmental agencies, would help refine the framework. “This is a necessary step in the evolution of Ghana’s parliamentary system, and I am confident we can build a sustainable model.”

The proposal is expected to spark national debate, with questions likely to arise on feasibility, priority, and public perception. However, Ayariga remains optimistic. “If we get this right, it will serve not just MPs but the entire democratic process in Ghana.”

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