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13 firms in trouble as NPRA is set to prosecute them for failing to pay pension funds of employees

By Mutala Yakubu
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Some thirteen (13) companies will be prosecuted by the National Pensions Regulatory Authority, (NPRA) for failing to honour any of the mandatory schemes for their workers.

This will be the first prosecution the NPRA is set to undertake since they were given power to do so.

Chief Executive Officer of the NPRA, Hayford Attah Krofi speaking to JoyBusiness at a sensitization workshop organized for the media in Accra, said the Authority has identified some companies and are in the last stage of the process for prosecution.

READ ALSO: Pension Scheme: Tier-2 pension defaulting companies to be prosecuted

“As you might be aware, the Authority has been given prosecutorial powers to prosecute defaulting employers. I mean employers who fail to pay pension contributions of their employees. In light of this, we have successfully trained some of our staff and our legal department has started processing persistent offenders for prosecution.”

“I can confirm that we are preparing to prosecute 13 defaulting employers and it is our ambition to continue to prosecute more who flout the laws to protect the interest of workers and secure their future.”

He added, “There has also been a steady growth in pension funds under the reforms. As of December 2018, the Total Pension Fund has increased from about GH¢20.7 billion in 2017 to GH¢22.2 billion in 2018. This is made up of GH¢13.1 billion of Assets Under Management (AUM) for Private Pension Funds and 9.1 billion of funds under the 1st -Tier scheme.”

Mr Attah-Krofi said despite the huge efforts by the Authority to whip up the interest among the Ghanaian working populace especially those in the informal sector, to enrol on pension schemes, the figures are still not encouraging, by way of, understanding and participating in pension schemes.

He also disclosed that the Authority has successfully dealt with issues relating to the Temporary Pension Fund Account at the Bank of Ghana.

“We are progressively working to conclude the on individual membership data relating to the public sector to pave way for the successful allocation of funds to individuals in the public sector schemes,” he said.

The National Pensions Regulatory Authority has been given the mandate to regulate the pension industry and ensure fairness in payment of pension funds.

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