Скачать или смотреть Remarks from Executive Officers from the National Pensions Regulatory Authority (NPRA)

Mr. Roland Adeku, an Executive Officer of the National Pensions Regulatory Authority (NPRA), recently presented on the topic “The Regulators’ Experience on Employees’ Attitude Towards Pension Contribution.”

His remarks emphasised the importance of pensions in securing financial stability in retirement and detailed the role and activities of the NPRA. Mr. Roland Adeku underscored the critical nature of the event’s theme, highlighting that pensions underpin the final stage of life. He urged all participants to take note and consider savings seriously. He highlighted three essential points for the audience: pension is directly linked to one’s salary, determining financial comfort during retirement; pensions act as a replacement for income in the final stage of working life; and pensions provide the financial cushion necessary to live the desired lifestyle in retirement.

Mr. Roland Adeku provided a brief background on the general attitude of employees towards pension contributions, noting varying levels of awareness and commitment.

He then focused on the NPRA’s role, particularly regarding the regulation regarding the three tiers of pensions available in Ghana. He explained that the NPRA was established by Act 766, which also established the three-tier pension system.

The NPRA’s primary responsibility is to regulate and ensure compliance with the Act, ensuring that contributions are paid out as pensions and maintaining security and trust within the market.

The three-tier pension system includes Tier 1: Social Security and Insurance Trust (SSNIT) and the Basic National Social Security Scheme, which provides monthly contributions and operates as an annuity structure, qualifying individuals for 20 years of monthly income starting from age 15, with hazardous employment benefits allowing qualification at age 55.

Tier 2: Occupational Pension Scheme, which permits the use of pension as collateral for primary residency and allows employees to access contributions at age 50 if they are unemployed.

And Tier 3: Voluntary Contribution, which includes the formal Providence Fund Scheme, allowing a maximum of 16.5% of salary as contributions for formal sector workers from age 15, with the informal sector having a personal pension scheme accessible after five years, compared to ten years for the formal sector.

Corporate trustees are licensed to manage lump sum payments, allowing employees to transfer assets from one employer to another, a process known as porting. Pension contributions are tax-exempt up to 35% of salary, incentivising savings.

Mr Roland Adeku highlighted that while the formal sector benefits from automatic SSNIT deductions, the informal sector faces challenges due to economic factors and a lack of financial literacy. The NPRA has initiated education and sensitisation outreach programs to train employees on the importance of pension contributions.

He concluded by noting improvements in pension contributions and stressed the importance of employees validating the contributions made by employers. Mr Roland Adeku reiterated that pensions play a vital role in ensuring comfortable living in retirement and encouraged a continued commitment to pension savings.

Mrs Rosina Akofi added her contribution by advising that SSNIT alone might not be enough to take care of us in our golden ages, speaking generally. She advised on wise investments and having a diversified portfolio that would also cushion us in our golden years.

Mrs Akrofi also pointed out that Tier 3 will be a great opportunity to invest more in your future, as Tier 3 is more voluntary payments and is seen as an investment into your future.