The Majority Leader and Leader of Government Business in Parliament, Mahama Ayariga, has proposed the establishment of a pension scheme for retired parliamentarians in Ghana.
Addressing Parliament on 29th January 2025, he emphasised the need to secure the financial well-being of former lawmakers, arguing that a well-supported retirement plan would strengthen the institution of Parliament and promote integrity among its members.
He noted that many MPs dedicate decades of their lives to public service but retire without a structured pension scheme, which could leave them financially vulnerable.
Mr. Ayariga’s proposal introduces an innovative funding mechanism, suggesting that the pension scheme be financed through revenues from carbon credits rather than relying on taxpayers.
He explained that Ghana could generate revenue by selling carbon credits from environmental projects, such as afforestation and renewable energy initiatives, on international markets.
A portion of these proceeds would then be allocated to the pension fund for retired MPs.
This approach, he argued, would not only secure lawmakers’ futures but also incentivise Parliament to prioritise climate action and environmental sustainability.
Drawing from international examples, the Majority Leader cited pension schemes for legislators in the United Kingdom and Kenya, both of which provide financial security for retired MPs. He pointed out that Ghanaian parliamentarians, some of whom serve for over 20 years, currently retire without a structured pension.
He warned that the lack of financial security could expose MPs to undue influence and corruption while in office, undermining the integrity of the legislature.
A pension scheme, he argued, would help prevent such vulnerabilities and ensure a more independent and effective Parliament.
Beyond financial security, Mr. Ayariga emphasised that linking MPs’ pensions to carbon credits would drive legislative action on environmental issues.
He outlined several ways Parliament could promote sustainability, including developing laws on climate change mitigation, encouraging renewable energy adoption, and supporting afforestation projects.
He expressed confidence that this model would align Ghana’s legislative priorities with global climate goals while securing long-term benefits for retired parliamentarians.
The Majority Leader moved for the House to establish a committee to consider proposals for setting up the pension scheme based on carbon credit revenues.
He acknowledged potential challenges, such as fluctuations in carbon credit prices, but maintained that a well-managed system with transparent oversight could provide a sustainable solution.
He urged his colleagues to support the initiative, describing it as a step towards ensuring both financial security for lawmakers and a greener future for Ghana.
ALSO READ: