Pensions Regulatory Authority begins compulsory enrollment of employers

pensions-regulatory-authorityThe National Pensions Regulatory Authority (NPRA) has started a compulsory enrollment of employers without registered 2nd Tier Occupational schemes.

NPRA has therefore assigned corporate trustees to all employers who failed to enroll under the mandatory scheme, for immediate and compulsory enrollment, a statement issued to the Ghana News Agency in Accra on Thursday said.

“With effect from December 1, 2015, all affected employers or establishments are required to cooperate with their respective Corporate Trustees to complete the enrollment process.

“Once enrolled, such employers will only be allowed to transfer to another scheme after 12 months of consistently paying the monthly 2nd Tier contributions – 5 per cent of contributor’s basic salary,” the statement said.

The compulsory enrollment onto the mandatory scheme is the first line of action for the affected Employers or Establishments.

The Authority said it reserves the right to invoke punitive measures including a fine or a term of imprisonment or both in line with provisions of the National Pensions Act, 2008 (Act 766).

The Authority also reminded workers and employers that enrollment under the 2nd Tier Scheme is a pre-requisite for accessing funds in the Temporary Pension Fund Account (TPFA) with the Bank of Ghana, since the funds can only be transferred to a registered scheme administered by a licensed trustee.

Source: GNA

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