Majority Leader and leader of Government Business, Mahama Ayariga, has proposed the establishment of a pension scheme for retired parliamentarians, with an innovative funding mechanism based on revenues from carbon credits.
Ayariga emphasized the need to secure the financial future of lawmakers who dedicate their lives to public service.
“An institution is only as strong as the individuals who populate it. Parliamentarians who know they are well catered for when they retire will be difficult to bribe and improperly influence. They will devote their attention to work and put up their best for their constituents and country,” he stated.
Delivering a statement on the floor of Parliament on Wednesday, January 29, the Majority leader pointed out that under the current system, MPs who serve multiple terms often retire without a structured pension scheme, leaving many in financial uncertainty.
Unlike traditional pension schemes funded by taxpayer contributions, Ayariga proposed financing the scheme through revenues from carbon credits.
According to him, by implementing an efficient carbon credit scheme, Ghana can generate revenue through emission-reduction projects such as afforestation, renewable energy, and energy efficiency initiatives.
“A portion of these funds can be allocated to the parliamentary pension fund, ensuring sustainability and reducing reliance on taxpayer funds,” he said.
Ayariga pointed to pension models in the UK and Kenya, where structured pension systems provide financial security to retired lawmakers.
He argued that a well-funded pension scheme could help reduce corruption by limiting the financial pressures on MPs, stressing that when MPs are financially secure, they are less likely to be swayed by bribes or other forms of corruption.
The Majority Leader also emphasized how linking pensions to carbon credit revenues could push Parliament to prioritize environmental sustainability.
To actualize this vision, Mahama Ayariga formally moved for Parliament to establish a committee to study and develop the pension framework.
The proposal was backed by legislators from both sides of the aisle.
The House eventually constituted a 9-member Committee to be chaired by Hon. Collins Dauda, to consider the proposal and has three months to submit its report.
Other members of the Committee are: Samson Ahi, Millicent Yeboul Amankwa, Alhassan Suhuyini, Frank Annoh-Dompreh, Stephen Amoah, Dr. Kabiru Tiah, Addo Frimpong and Former MP Benjamin Kpodo