The Ministry of Employment and Labour Relations is set to take legal action against businesses failing to enroll their employees onto the various pension schemes.
According to the Sector Minister, Ignatius Baffour Awuah, many employees, after their working life, retire with no pension benefits because their employers refuse to pay either tier 1 or 2 obligations.
He is encouraging employees to seek redress by reporting incidents of no pension payment by employers.
Out of 34 million Ghanaians, only 2 million are rolled onto various pension schemes. In the formal sector, some employees refuse to pay the tier 1 and 2 pension premium.
Minister of Employment and Labour Relations, Ignatius Baffour Awuah said legal action will be taken against recalcitrant employers.
“It is your right as an employee to demand payment information about your contributions towards pension. We are aware some companies default in the payment of pensions. If it comes to our notice, the necessary legal punishment will be meted out to them. Employees should report them, so we monitor their employers,“ he said.
The National Pension Regulatory Authority (NPRA) has observed an increase in old age poverty among informal sector workers.
The Authority is educating informal sector workers to contribute to the voluntary tier 3 Group or Personal Pension Scheme to secure their pensions.
CEO of National Pension Regulatory Authority (NPRA), Lawyer Hayford Atta Krufi said,“Our aim within five years, is to reach 40% of the informal sector. With the size of the informal sector, a lot of sensitization needs to be done. It is our collective responsibility to curb old age poverty.”
Chairman of the Association of Vulcanizers, Robert Ayittey, lamented the loss of savings during the financial sector cleanup. This according to him has deterred some informal sector players from contributing to the pension fund.
“We do not trust these pension fund companies and financial institutions. But the Minister has assured us to have confidence in the sector. I will engage and educate members of my association,” he assured.
Meanwhile, the Asantehene, Otumfuo Osei Tutu II wants strict supervision of the activities of the various trustees of pension funds.
He believes this will whip up the interest of the populace in contributing towards their retirement.
“I entreat the NPRA to supervise the business of pension fund management companies. You have a right to demand accountability and transparency from the trustees,” he said.
- NSMQ 2021: ‘Learn to lose graciously’ – Primetime replies Presec on ‘raw deal’ claims
- Police issues warrant for the arrest of Nhyiaeso MP
- Ex-military man shoots 2 children over rent issues with their father
- ‘E-levy is not compulsory; if you don’t want to pay, don’t do ‘MoMo’ – Carlos Ahenkorah
- GOIL withdraws from Association of OMCs over accusations of government interference in fuel price review
- 2 new banks coming soon – Banking Consultant
- Prempeh College’s interactive screen was locked through no fault of theirs during NSMQ finale – Primetime Limited reveals
- GOIL denies government’s hand in latest fuel price review
- 3 school children die in accident, others in critical condition
- ‘I love Burna Boy’s verse on ‘Second Sermon’ – Black Sherif amidst remix controversy
‘Bring innovation to farming’ – Karaga MP urges winners of 2021 Farmers Day at Pishugu
We don’t need Wizkid’s platform, We have to work hard – R2Bees
Special Prosecutor to set up Ghana Corruption League Table in 2022
Sustain momentum of Green Ghana Project – Youth Bridge Foundation to government
First Lady’s Cup: Hasaacas seek fifth major trophy against Ampem Darkoa
WGPL: GFA releases fixtures for 2021/22 season
We are currently investigating 31 corruption cases – Special Prosecutor
Full text: Special Prosecutor’s speech on World Anti-Corruption Day
Prices of goods could skyrocket by 25% – Food and Beverages Association
Playback: Office of the Special Prosecutor holds International Anti-Corruption Day
Inflation to remain elevated in coming months – Report
Meet the Nigerian artist illustrating the human experience with a ballpoint pen
Ethiopia war: UN halts food aid in two towns after warehouses looted
Congratulations on your sterling 2021 WASSCE performance – GES to candidates
What is social media saying about Carlos Ahenkorah’s E-levy comment?