The National Pensions Regulatory Authority (NPRA) has outdoored its five-year strategic plan aimed at improving the financial independence of the Authority.
NPRA is a regulatory body established by the National Pensions Act, 2008 (Act 766) to oversee the administration and management of the contributory 3- Tier Pension Scheme.
Addressing the media during the Authority’s bi-annual Media Engagement forum, the Chief Executive (CEO) Officer of the Authority, Mr. Hayford Attah Krufi stated that the current strategic plan is focused on improving the financial independence of the Authority, development of human capital for effective regulation of the Pensions industry as well as education and sensitisation.
With the current plan ending in December 2021, Mr. Krufi explained that the new five-year strategic plan will guide NPRA’s operations from year 2022 to 2026.
This plan he said, will be guided by a broad theme; ” A visible NPRA, increasing coverage and growing Pension Assets for National Development”.
The CEO also listed the key thematic focal areas of the new plan including Sustaining the credibility of the Authority, ensuring Market Discipline, increasing pension coverage, ensuring Market Transparency and ensuring the sustainability of the Basic Social Security Scheme
These key results areas, according to Mr Krufi, are expected to help the Authority to achieve the overall goal of the 5-year plan of increasing 40% pensions coverage and GH¢50 billion Assets under Management (AuM) of private pensions and ensuring the sustainably of the Basic National Social Security Scheme (BNSSS) by the end of 2026 for National Development.
One challenge Mr. Krufi pointed out was the fact that current statistics available to the Authority on pension coverage in Ghana, indicates that only 3% of workers in the informal sector are covered under pension schemes.
“A huge number of workers in the informal sector will not have access to regular income during their retirement”, Mr Krufi bemoaned.
He was however quick to add that this is why his outfit has set this ambitious target of increasing pension coverage.
In an interview with the media with regards to what happens to defaulting employers for payment of SSNIT contributions for and on behalf of their employees, Mr. Krufi stated that the provisions of Act 766 of 2008, mandates employers to register and contribute to the Basic Scheme (SSNIT) and Tier 2 schemes were not always complied with.
This, he noted, has led to some employees of such establishments being disadvantaged at the period of their lives when they would no longer be able to take care of themselves.
He said this negates the Authority’s mandate of ” ensuring retirement income security for workers.
Mr Krufi disclosed that since July 2020, the Authority has issued notices of intention to take legal action against 60 defaulting employers as a final reminder to make good their indebtedness or face prosecution.
Out of this figure, about 70% of the defaulters, he indicated, have contacted the NPRA and have either made full payment or part payment of their total indebtedness.
However, a total of 15 employers are being processed for prosecution.
According to Mr. Krufi, the total amount paid to corporate Trustees as a result of the prosecutions by NPRA as at the end of June 2021 is a whooping GH¢6,242,074.21.
The CEO seized the opportunity to thank all players in the industry for their immense support and collaboration with the Authority.
“We at NPRA will continue to work with you in ensuring the development of the pensions industry”, he pledged.
