Pensions: Regulatory body retrieves GHS 14m from non-compliant companies
Ghana’s National Pensions Regulatory Authority (NPRA) has recovered GH¢14m from non-compliant companies under the second tier pension scheme in the past year, according to its deputy chief executive officer, David Abbey. The amount was recovered from the first quarter of 2022 until the present day, Abbey said, 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 Abbey stressed that the authority relies on information from trustees and individuals to investigate and retrieve contributions where necessary.
The visit by the Minister of Employment, Labour Relations and Pensions, Ignatius Baffour-Awuah, to the NPRA in Accra focused on the policy perspectives of the authority and how it can align with them. The minister 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. Only around two million people out of a working population of 14 million are covered by SSNIT pensions, according to statistics.
To address this issue, the minister emphasized the need for massive sensitisation to enable Ghanaians to see the positives of pensions and the importance of monitoring contributions. The NPRA has proposed a review of the current Pensions Act (Act 766), which has been in use for the past 13 years, and the minister indicated that he is in agreement with the review. However, he noted that such a review would require significant work through Parliament.
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 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.
