Fifteen employers are currently being processed for prosecution for failing to pay the tier two contributions of their workers.
This is according to the National Pensions Regulatory Authority (NPRA).
CEO of the NPRA at a media briefing in Accra on Wednesday, 30th June 2021 also disclosed that the total amount paid to Corporate Trustees as a result of prosecutions by the NPRA from January to the end of June this year is GHS6,242,074.21.
Under the pensions law, the provisions of Act 766 of 2008, mandates employers to register and contribute to the Basic Scheme (SSNIT) and Tier 2 Schemes.
The law is however not always complied with, leading to some employees of such establishments being disadvantaged at the period of their lives when they would no longer be able to fend for themselves and negating the Authority’s mandate of ensuring retirement income security for workers.
Mr Attah Krufi stated, “Since July 2020, the NPRA has issued Notices of Intention to take legal action against sixty (60) defaulting employers as a final reminder to make good their indebtedness or face prosecution”.
“The response to the final demand notices has been encouraging, since about 70% of the defaulting employers who received the demand notices contacted the NPRA and made good either all of their indebtedness or made partial contributions to cover their employees. Some entities also submitted payment plans”.
Currently, a total number of 15 employers are being processed for prosecution.
The Authority has also completed the development of a new 5- year strategic plan to guide its operations from 2022 to 2026 that will be guided by a broad theme; “A Visible NPRA, Increasing Coverage and Growing Pension Assets for National Development”.
These key results areas are expected to help the Authority to achieve the overall goal of the 5-year plan of increasing “40 percent pensions coverage and GHS50 billion Ghana Cedis Assets under Management (AUM) of Private Pensions and ensuring the sustainability of the Basic National Social Security Scheme (BNSSS) by the end of 2026 for National Development.”