Ghana’s National Pensions Regulatory Authority (NPRA) has disclosed an amount of GH¢14million, recovered from non-compliant companies under the second-tier pension scheme in the past year.
According to Mr. David Abbey – the deputy chief executive officer of NPRA, the amount was recovered from the first quarter of 2022 until the present day, and was achieved through the detection of defaulting employers, writing to them to settle the arrears, and obtaining an arrest warrant if no response was received.
The NPRA can prosecute defaulting employers, but Mr. Abbey stressed that the authority relies on information from trustees and individuals to investigate and retrieve contributions where necessary.
Mr. Abbey during an interview averred that the past visit by the Minister of Employment, Labour Relations and Pensions – Mr. Ignatius Baffour-Awuah to the NPRA in Accra focused on the policy perspectives of the authority and how it can align with them.
According to Mr. Abbey, the employment minister during his visit highlighted his focus on improving and augmenting the percentage of pension’s penetration in the domestic insurance and pensions market, which has grown in recent years but has low penetration.
Statistics, as stated by Mr. Abbey, shows only around two million people out of a working population of 14 million are covered by SSNIT pensions.
Addressing the media during his visit, Mr. Baffour-Awuah emphasized the need for massive sensitisation to enable Ghanaians to see the positives of pensions and the importance of monitoring contributions.
MELR’s Past Proposal To NPRA For Pensions Act (Act 766) Review
Through the visit, Mr. Baffour-Awuah on behalf of the Ministry of Employment, Labour Relations (MELR) hinted that the MELR was ready to consider proposals by the NPRA to review the current Pensions Act, (Act 766).
“The review of the Act is a major preoccupation. It has been in use for the past 13 years and I am in agreement for its review. That, however, will involve some amount of work through Parliament.”Mr. Baffour-Awuah
The recovery of GH¢14m from non-compliant companies underlines the importance of the NPRA’s work in ensuring that employers comply with pension regulations. The authority’s reliance on information from trustees and individuals highlights the importance of vigilance in monitoring employer compliance, and the need for a strong regulatory framework to enforce compliance where necessary.
The employment minister’s focus on increasing pension’s penetration is also crucial in ensuring that more Ghanaians have access to the benefits of pensions and are able to plan for their financial futures.