Tier 2 contributions safe - NPRA allays fears of workers
The National Pensions Regulatory Authority (NPRA) has allayed the fears of workers that the authority has used their tier two pension contributions.
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It has assured workers that their tier two contributions were still intact despite delays in transferring the monies to licensed private trustees.
Section 218 of the National Pensions Act, 2008 (Act 766), requested for the establishment of the Temporary Pension Fund Account (TPFA) with the Bank of Ghana as a transitional arrangement pending the licensing of trustees and the registration of other service providers and schemes into which Tier two contributions are to be placed.
The authority was subsequently required to transfer all contributions, including returns, to their respective approved schemes within 90 days after the licensing of these entities.
However, the inability of the authority to fully fulfil this request, especially for public sector workers, has created some doubts as to whether the money is there or not
In a speech read on his behalf, the Chief Executive Officer (CEO) of the NPRA, Mr Hayford Atta Krufi, said at the 2017 week celebration of the Health Services Workers’ Union of the Trades Union Congress (TUC), assured all contributors and organised labour that the money was safe and had not been touched.
Trustees receive GH¢219.7m
Mr Krufi said trustees of the following public sector schemes; the Hedge Master Trust Scheme, the GES Occupational Pension Scheme, the Health Services Workers’ Occupational Pension Scheme and the Judicial Service Occupational Pension Scheme, had received GH¢219.7 million for the period of September 2016 - April 2017.
“The authority is closely working towards the transfer of the remaining contributions in the TPFA for the above — named schemes from January 2010 to August 2016. A number of progressive meetings have been held with key stakeholders, including the trustees of their schemes, scheme administrators, independent trustees and the Controller and Accountant-General’s Department,” he stated.
“This is important to ensure the finalisation of due processes for a smooth transfer of funds into their respective scheme accounts at custodial banks for continued investment under the NPRA- prescribed investment guidelines,” he added.
He,however, pointed out that there were a number of public sector institutions outside the four schemes mentioned above that had not joined any scheme or set up one whose contributions continued to be paid into the TPFA.
“We take this opportunity to encourage them to approach the NPRA and be guided through the process of accessing the benefits that are accruing to their members.
“Worthy of mention is the Electoral Commission which is a government sub- vented institution which does not belong to the four (4) major Public Sector Schemes named above but successfully joined a Master Trust Occupational Scheme managed by a corporate trustee upon completion of all due processes. They continue to receive their contributions since March 2017,” he indicated.
Safe and fair returns
The CEO also pointed out that for pension benefits to retain value over the accumulation period, trustees must seek safe and fair returns.
He said the NPRA, in collaboration with its stakeholders, had reviewed the existing guidelines on Investment of Pension Scheme Funds to realign pension funds’ investment to national goals and aspirations.
The new guidelines have since January 27, 2017 been gazetted and operational from April 1, 2017.
Mr Atta Krufi said the new guidelines would, among others, create an environment that enables pension funds to impact positively on the Ghanaian economy.
“In line with this objective, the new guidelines have given special attention to certain investment vehicles that have developmental focus and are in direct alignment with national aspirations,” he said.