NPRA transfers over GH¢130m to public sector schemes
The National Pensions Regulatory Authority (NPRA) has transferred GH¢131.36 million to three registered public sector schemes. The payment, which is the five per cent mandatory monthly contribution under the second tier pension scheme, covers five contribution months from September 2016 to January 2017.
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The beneficiary schemes include Hedge Master Trust Scheme which serves the Civil and Local Government Staff Association of Ghana (CLOGSAG), GES Occupational Pension Scheme for the Ghana Education Service and Health Services Workers’ Occupational Pension Scheme, for health sector workers.
In an interview with the Graphic Business, the Corporate Affairs Manager of NPRA, Mr Emmanuel Dagbanu, said the fourth scheme, Judicial Services Occupational Pension Scheme, completed registration formalities in December 2016 and would receive their contributions for the five months in due course.
Registration of Pension Schemes under the mandatory second tier started in 2012.
However, an impasse between the government and some 12 labour unions as to which of them has the right to appoint a scheme to manage their second tier contributions of public sector workers paid through the Controller and Accountant General’s Department (CAGD) caused a delay in the establishment of the four public sector schemes.
Through the initiative and drive of the Ministry of Employment and Labour Relations (MELR), the dispute was resolved in 2015 with a roadmap that ensured the establishment of the four schemes for the public sector.
Mr Dagbanu said with those transfers the Authority had effectively cut off the accumulation of funds in the TPFA in respect of the four registered public sector schemes.
The transfers also mark a start of the four public sector schemes.
Future transfers
He said the Authority and other key stakeholders had engaged the government through the CAGD and the Ministry of Finance to ensure the direct transfer of subsequent mandatory five per cent workers’ contributions to the Pension Fund Custodians (banks) of the four schemes.
The corporate affairs manager said the Authority had thus mandated Licensed Trustees of the four schemes to follow-up and ensure direct payments of the contributions from the CAGD.
Independent audit
As of February 8 this year, total contributions received into the TPFA for the public sector workers since January 2010 amounted to more than GH¢1.1 billion, with interest earned on the contributions being a little over GH¢987.41 million.
This brings the total value of the TPFA funds for public sector workers to more than GH¢2.1 billion.
According to the NPRA, an independent audit of the public sector TPFA is being conducted by accounting firm PricewaterhouseCoopers (PwC) with sponsorship from the Swiss Secretariat for Economic Affairs (SECO).
The audit is expected to reconcile contribution data with funds accrued, thereby paving the way for the transfer of the funds to registered public sector schemes.