Parliament has established a committee to explore a proposed pension scheme for Members of Parliament (MPs), which would be funded by proceeds from carbon credit trading.

The proposal, introduced by Majority Leader and Leader of Government Business, Mahama Ayariga, aims to create a pension fund for MPs after their service in the House, using revenues generated through carbon credits.

A carbon market allows investors and corporations to trade carbon credits and offsets, contributing to environmental mitigation efforts while also creating new economic opportunities.

This move follows concerns raised by MPs over the years about their post-service financial security, with some lamenting that they face financial hardship after leaving Parliament.

The MPs have called for the creation of a special scheme to support MPs and former MPs once they exit the House.

During the announcement of the committee's formation, Mr Ayariga stated that the proposed pension scheme would not place a burden on the state’s budget.

He explained that serving in Parliament is a noble but often financially challenging role, with many MPs enduring hardships while maintaining their constituencies.

He pointed out that some MPs leave Parliament without any adequate pension arrangements, leaving them in difficult financial situations shortly after their service ends.

“There’s a perception that we are all very rich and we are well to do but many of you in this chamber know that that is far from reality. There are many of us who are not well to do,” Mr Ayariga said.

He further stated that the intention is to establish a pension fund that is self-sustaining through carbon credit revenues rather than relying on taxpayer funds.

“We are proposing to design an MPs pension scheme that is going to be funded from revenues from carbon credit. We believe that carbon credit market is one that has not been fully explored by Ghana and so if we input in place the right infrastructure for carbon credit market and we put Members of Parliament in charge of ensuring that all the policies and programmes that enables Ghana to gain so much from trading in carbon credit in the international market, some of those revenues can go into the pension fund of Members of Parliament,” Mr Ayariga explained.

The former Minister of Works and Housing, Kojo Oppong Nkrumah, also expressed support for the creation of the committee.

However, he suggested that instead of determining MPs' pensions at the end of their term, a more effective approach would be to establish their pension arrangements at the beginning of their service.

This, he argued, would allow MPs to plan for their financial futures more effectively.