(1) Subject to section 213 of this Act, the retirement benefits in respect of accrued or past service earned by an employee shall be computed in accordance with the terms of conditions of service existing before the commencement of this Act.
(2) Each employee shall be issued with a Ghana Government Retirement Bond equivalent to the total retirement benefit that was due the employee as computed at the commencement of this Act.
(3) The Bank of Ghana shall establish a Retirement Benefit Bond Redemption Fund referred to as the “Redemption Fund” Account into which the Government shall make periodic payments.
(4) The amount in the Redemption Fund shall be used by the Bank of Ghana to redeem any retirement benefit bonds issued.
(5) Payments into the Redemption Fund shall cease after the retirement benefit bonds issued under subsection (2) have been redeemed.
(6) On retirement of an employee
(i) the retirement benefits bond shall be redeemed by the Bank of Ghana from the redemption fund account
(ii) the proceeds of the bond redeemed shall be transferred to the credit of the retirement savings account of the employee; and
(iii) the employee shall utilize a percentage, to be prescribed by the Board, of the balance standing to the credit of the employee’s retirement savings account to purchase an annuity for life from a life insurance company licensed by the National Insurance Commission with monthly or quarterly payments.