Tier 2 employee pensions: NPRA to prosecute firms for failing to settle
The NPRA has so far recovered ¢6.2 million from some defaulting firms since July last year when it issued a legal action to them.
The National Pensions Regulatory Authority(NPRA) is gearing up to prosecute a total of 15 employers for failing to settle tier-2 pension contributions of their employees.
According to the Authority, this move has become necessary after several warnings to the firms.
The NPRA has so far recovered ¢6.2 million from some defaulting firms since July last year when it issued a legal action to them.
This was made known by the Chief Executive Officer(CEO) of the NPRA, Mr. Hayford Atta-Krufi at a press briefing yesterday, June 30, 2021.
He further revealed that quite many employers are not complying with the Tier-2 Pension scheme, which will deny employees pension benefits when they retire.
“The provisions of Act 766 of 2008, mandating employers to register and contribute to the Basic Scheme (SSNIT) and Tier 2 Schemes were not always being complied with, leading to some employees of such establishment being disadvantaged at the period of their lives when they would no longer be able to fend for themselves and negating the authority’s mandate of ensuring retirement income for security workers”
“Since July 2020, the authority has issued Notices of Intention to take legal action against 60 of defaulting employers as a final reminder to make good their indebtedness or face prosecution”, He added.
Mr.Atta Krufi however bemoaned the fact that a huge number of workers especially in the informal sector will not have regular income when they retire.
This stems from the fact that only 3% of workers in the informal sector are covered under pension schemes, which is not good for the country’s development.
