NPRA to Prosecute Employers Over Unpaid Tier 2 Pension Contributions — Deputy CEO Warns
The National Pensions Regulatory Authority (NPRA) has announced plans to prosecute employers who deduct pension contributions from workers’ salaries but fail to remit the mandatory Tier 2 funds, in a renewed effort to enforce compliance within Ghana’s pension system.
The warning was issued by the Deputy Chief Executive Officer of the NPRA, Victor Azumah, who stated that the Authority is intensifying enforcement measures to protect the retirement benefits of workers and restore confidence in the country’s pension scheme.
Mr. Azumah emphasized that employers who fail to transfer deducted pension contributions are committing an offence under the law.“
Employers who deduct pension contributions from their employees and fail to remit them are violating the rights of those employees,” he stated.
He noted that the NPRA is stepping up actions against such employers, with prosecution forming a key part of its enforcement strategy.
As part of the crackdown, the Authority has enhanced its legal capacity by training more than 40 prosecutors across the country to support enforcement efforts.
According to Mr. Azumah, this initiative is aimed at ensuring that persistent offenders are dealt with decisively in accordance with Ghana’s pension laws.
The move aligns with the NPRA’s mandate to regulate and monitor Ghana’s three-tier pension scheme, ensuring that contributions—particularly under the privately managed Tier 2 scheme—are properly handled.
Mr. Azumah urged all employers to regularize their contributions and comply fully with the law to avoid sanctions.
The NPRA has warned that defaulting employers will face strict penalties.Specifically, employers who fail to remit contributions may be surcharged up to three percent of the defaulted amount.The enforcement drive is aimed at safeguarding the retirement income of Ghanaian workers, many of whom depend on their pension savings after active employment.
Industry observers say the failure of some employers to remit Tier 2 contributions has long been a concern, often leaving employees unaware that their funds have not been properly invested.
The NPRA is also encouraging workers to regularly monitor their pension statements and report any discrepancies to the Authority.While emphasizing that compliance remains its primary goal,
Mr. Azumah reiterated that the Authority will not hesitate to prosecute employers who continue to violate pension laws.
The move signals a tougher stance by regulators as Ghana seeks to strengthen its pension system and protect workers’ financial future.
Story by: Philip Kendriz Elikem
