Pensions regulator woos trustees into informal sector as it waives off fee
The National Pensions Regulatory Authority (NPRA) has said it wants more pension trustees to venture into the vast informal sector of the economy.
To this end, the Authority has waived its fee for those who want to register informal sector schemes.
“We want the trustees to go into the informal sector. That is why we recently decided to waive off our fees for those who want to register informal sector schemes.
We are doing everything possible to make it flexible for them to take advantage of the huge informal sector, which forms over 80 percent of the country's workforce,” Mr. Emmanuel Dagbanu, Director of Corporate Affairs at the NPRA said.
He was speaking at the launch of Old Mutual Pensions Trust Company, a pension management and administrative services provider to third tier party defined contribution pension schemes.
Although about 80 percent of Ghanaians are found in the informal economy, over 80 percent of employees and employers are not on any form of pension scheme.
The new Pensions Law, National Pensions Act, 2008 – Act 766, allows both formal and informal employees the opportunity to contribute towards a ‘social insurance.’
The new three-tier pension’s scheme comprises two mandatory schemes and a voluntary scheme.
The second-tier is an occupational or work based pension scheme, mandatory for all employees but privately managed and designed primarily to give contributors high lump sum benefits than previously available under the SSNIT pension scheme.
The third-tier, the voluntary Provident Fund and Group/Personal Pension Schemes, is supported by tax benefits to provide additional funds for workers in the formal sector who want to make voluntary contributions to enhance their pension benefits and also for informal sector workers.
George Addison, Interim CEO of Old Mutual Ghana, said the company, though young, has a wide range of pension solutions that cater to the needs of institutions and individuals, with value-based investment options to cushion workers toward retirement.
“With our rich African heritage, Old Mutual is constantly expanding its operations to adequately cater for the needs of clients and customers,” Mr. Addison noted, adding that, “today is yet another example of our commitment to enabling positive futures for our customers.”
Old Mutual Pensions Trust Company Limited is registered with the NPRA as a corporate trustee and pension administrator.
It is a subsidiary of Old Mutual Group, an investment, savings, insurance and banking firm, with operations in Africa, the Americas, Europe and Asia.