Ernest Amartey-Vondee, the Director in charge of Planning, Research and Evaluation at the NPRA, outlined measures put in place by the Authority in response to the effect of the global pandemic on the pension industry in the country.
“The COVID-19 has had its effect on the pension industry in Ghana. In response, the following measures were instituted. Corporate trustees were made to initiate business continuity plans. The NPRA put in place a mechanism of how to engage with these regulated entities particularly on matters relating to licensing and registration, report submission, fee payment and others. Also, onsite inspections were put on hold temporarily whereas previous submissions of deadline regulatory reports were relaxed. Also, engagement with service providers were held remotely and a review of the Ghana Revenue Authority Act was done to relax withdrawals of Tier three benefits”.
Ernest Amartey-Vondee
According to him, the NPRA has suffered tremendously as a result of the pandemic as most pension funds have undergone some setbacks. Investments of pension funds in financial assets which resulted in low turnovers had the pandemic to blame for it.
The National Pensions Regulatory Authority, NPRA, says the impact of COVID-19 on the pensions industry globally is a reminder to developing countries such as Ghana to introduce and implement long-term sustainable plans for the aged.
Speaking at the 2nd Virtual Annual Open Forum organized by Axis Pension Trust, Mr. Amartey-Vondee, also said the regulator is strict in enforcing some recommendations that came up during the three-week partial lockdown to protect pension contributions.
The scourge of the pandemic has very much affected all other sectors and the pension industry is bearing its own brunt of it as fund managers are experiencing reduction in returns.
Usually, pension funds are invested in long term instruments due to their nature. In developed economies, pension funds serve as a pool of money to invest in the real sectors to generate returns upon which part is given to pension contributors when they retire.
The impact of COVID-19 on the industry has compelled the NPRA to outline new regulations to protect contributors.
The CEO of Axis Pensions Trust, Afriyie Oware in addressing the financial sector challenges, also laid emphasis on the necessity in enhancing corporate governance in the midst of COVID-19 by bolstering public confidence towards pension contribution.
“A lot of people have lost their monies to various financial sector institutions. Some of which are actually regulated so this has heightened the level of anxiety among the investor public. So we believe this event has come as a necessary intervention to keep you closer and to also give you an opportunity of understanding exactly what is happening. As a business, Axis has evolved”.
Afriyie Oware
Even though pension contribution has been generally low in Ghana, there have been attempts by successive governments to encourage the informal sector to join in the contribution.
