The National Pensions Regulatory Authority (NPRA) has intensified efforts to ensure compliance with Ghana’s three-tier pension scheme, with 178 out of 268 companies audited in and around Wa in the Wa Municipality of the upper west region identified as non-compliant with Tier Two pension contributions.
Ransford George Mensah, Regional Manager of the NPRA for Upper West Region disclosed this during an interview, with Kangyiri Radio, saying some employers had failed to remit pension contributions despite deducting employees’ money from their salaries.
He said the NPRA had visited and audited 268 companies, with 178 companies are found not to be complying with Tier Two requirements, while some were also failing to pay both Tier One and Tier Two contributions.
He said 86 companies has been surcharged and 178 companies are also in the pipeline to be surcharged within and around Wa township.
Mr. Mensah said the Authority works closely with the Social Security and National Insurance Trust (SSNIT) and the Office of the Registrar of Companies to identify businesses and verify their pension obligations.
He explained that employers who fail to comply are given notices and may be surcharged for outstanding contributions.
Continued failure to pay, he warned, could result in prosecution.
Mr. Ransford George Mensah said the three-tier pension system was introduced following pension reforms aimed at addressing concerns over inadequate retirement benefits.
He explained that Tier One is the basic national social security scheme managed by SSNIT, while Tier Two is an occupational pension scheme. Both are compulsory for workers in the formal sector.
Tier Three, he said, is voluntary and provides an opportunity for workers, including those in the informal sector, to make additional pension provisions for their future.
He urged workers not to assume that pension arrangements are only for government employees, stressing that traders, drivers, artisans, farmers, mechanics and other self-employed persons also need to prepare for retirement.
According to him, pension planning is particularly important because circumstances such as retirement, disability or death can leave individuals and their families without a reliable source of income.
Mr. Mensah also urged workers to regularly review their nominated beneficiaries and update the information whenever their circumstances change.
He said some workers nominate relatives, friends or partners when they begin employment but fail to update their beneficiary records after marriage or other major changes in their lives.
He cautioned that failure to update such records could create difficulties for beneficiaries when a contributor dies.
The Regional Manager explained that the NPRA regulates the three-tier pension system by overseeing pension contributions, investments and the payment of benefits.
The Authority, he said, also formulates policies and regulations, advises government on pension matters, conducts audits and educates the public on pension issues.
He stressed that the Authority’s broader objective was to help reduce old-age poverty by ensuring that people have something to rely on after leaving active employment.
By: Ahmed Abubakari Saanyuo
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