By Lawrence Odoom/Phalonzy
Mr. Bright Abekah-Mensah, Greater Accra Regional Head of the National Pensions Regulatory Authority (NPRA), has underscored the imperative for employers to adhere to pension contribution laws, safeguarding the retirement benefits of Ghanaian workers.
Speaking at a Valentine’s Day health screening event in Tema, Mr. Abekah-Mensah emphasized that employers are bound by law to register their employees and ensure timely pension contributions. “Employers are legally required to register their employees and ensure the timely payment of pension contributions,” he stressed.
Failure to comply, he warned, could have dire consequences, jeopardizing workers’ future security and attracting sanctions for defaulting employers.
In a stern warning to employers, Bright Abekah-Mensah left no room for ambiguity: compliance with pension contribution laws is mandatory, no ifs or buts.
The NPRA official emphasized that employers have no choice but to prioritize pension contributions for their employees, adding a sense of urgency to the matter.
“This is going to the employers… Employers, wherever you are, you either start paying your employees Tier 2 pensions contribution or we come and catch you,” he declared.
Mr. Abekah-Mensah urged workers to be vigilant, monitoring their pension contributions and reporting any employer who fails to remit payments.
“Compliance is key to strengthening the country’s pension system and securing workers’ retirement,” he noted.
Background of the Pension Act 766
The Pensions Act 766, enacted in 2008, serves as the cornerstone of Ghana’s pension system, providing a regulatory framework for the management and administration of pensions in the country.
The Act establishes the National Pensions Regulatory Authority (NPRA) as the primary regulator of the pension industry, responsible for ensuring compliance with pension laws and protecting the interests of workers.
The Pensions Act 766 mandates pension contributions from both employers and employees, and sets up a three-tier pension system. This system includes a mandatory basic national social security scheme, a mandatory occupational pension scheme, and a voluntary provident fund. The Act also regulates pension fund managers and trustees, and protects pension benefits and rights of workers.
The overall goal of the Pensions Act 766 is to provide a secure and sustainable pension system for Ghanaian workers, promoting retirement savings and income security.
