The Chief Executive Officer of the National Pensions Regulatory Authority NPRA, Hayford Atta Krufi, has hinted that the authority has attained the legal powers to prosecute employers who default in paying pension contributions of their staff.
By the prosecutorial powers, the Authority will be able to hold employers and companies responsible when they fail to remit monthly contributions to the mandatory Tier 1 and Tier 2 pension schemes
The core mandate of the National Pensions Regulatory Authority, which is to inform and educate people on the need to have retirement income security, is gradually changing to enforcing and ensuring that employees have value for money and enjoy better pay at the end of their service.
According to the CEO, the National Pensions Regulatory Authority would in 2019 go after employers who default in paying contributions.
Mr. Hayford Atta Krufi disclosed this at an event with industry players today November 21, 2018 in Accra.
The Prosecutorial power is key to ensuring a good coverage of pensions for the population. The pensions law stipulates that a surcharge of 3% per month would be applied on any contribution that is defaulted. It is also important that the public is educated to know how to deal with such a situation.
For some time now, employers default contributions by either not complying with the laws to register their staff with a scheme or they are registered but are not up-to-date with payments.
Though some employees may be aware their employers do not pay their pension contribution, they are not able to complain due to the fear of losing their jobs.
This is key to ensuring a good coverage of pensions for the population. The pensions law stipulates that a surcharge of 3% per month on any contribution that is defaulted. It is also important that the public is educated to know how to deal with such a situation.
Meanwhile, it is reported that assets for tier-2 alone stand at GHS8.5b which accounted for 5.4% of GDP.
