Ghana’s pension authority now has the power to prosecute companies that don’t pay their employees’ pensions
The threat of prosecution comes after the Attorney General recently gave the pensions regulator prosecutorial powers to go after companies that default in their workers’ tier-2 pensions.
The National Pensions Act 2008, Act 766, established a three-tier pension scheme consisting of three levels of contributions.
The mandatory first tier is remitted to Social Security and National Insurance Trust (SSNIT) with the tier-two, which is equally compulsory, paid on workers’ behalf by employers and managed by Private Pension Service Providers.
The contribution is pegged at 5% of the employee’s basic monthly salary. This cost is borne by the employee.
The CEO of the National Pensions Regulatory Authority, Hayford Atta Krufi in an interview revealed that employers that default in paying the tier-2 pension will no longer escape from the clutches of the law. “NPRA has now been given the powers to prosecute by the Attorney-General.”
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