Business News of 2014-04-26

Workers demand information on 2nd tier pension fund from BoG

A section of Ghanaian workers have complained of being left in the dark regarding the second-tier scheme under the National Pensions Act of 2008 (Act 766).

The tier, which is mandatory, requires workers to contribute 5.5 per cent of their earnings every month into a private fund.

Since its inception, the scheme has been managed by the National Pensions Regulatory Authority (NPRA) under the Temporary Pension Fund Account (TPFA).

Monies accrued under the Fund are reported to be sent to the Bank of Ghana for safekeeping.

“We have not been told what is happening to that money, whether it is in any form of investment, whether it is accompanied by [the] list of people who contribute to it, and whether or not what type of investment is running with it,” complained Solomon Kotei, the General Secretary of the Industrial and Commercial Workers Union (ICU).

He said the introduction of the three-tier system has brought more harm than good.

“It is about workers’ money and we think the security that this is bringing to enhance retirement benefits has rather brought more fears and worry to workers of Ghana.”

He said no statement of accounts has so far been furnished workers.

Bank of Ghana's Ephraim Agidi, who also serves on the three-member committee for the scheme, stated, however, that the Bank is not accountable to the workers but to NPRA, who manage the fund.

“Bank of Ghana cannot give them any information,” said Mr. Agidi.

“It is the NPRA that is supposed to give them information. The Bank is only holding the money in trust for NPRA so they cannot divulge information just like that.”

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