NPRA assures Corporate Trustees on TPFA Transfers

There are indications that funds lodged into the temporary Pension Fund Account (TPFA) at the Bank of Ghana for the 2nd-Tier Funds are now being transferred into the custody accounts of Corporate Trustees and the Employer-sponsored scheme.

The Chief Executive Officer, National Pensions Regulatory Authority (NPRA), Kofi Anokye Owusu-Darko said this during a presentation at the fourth GLICO Pensions stakeholders forum in Accra, yesterday.

Explaining further, he said these funds were invested in government Treasury bills, and after the appropriate reconciliations and audit are done will be required to be transferred.

“As part of our mandate as the Regulator, the NPRA is required to see to overall development of the pension industry. In every way possible, we will collaborate with you to make this task a reality. So far, we have consulted all stakeholders on any significant action we have embarked upon,” the NPRA CEO emphasised.

Importantly, too, Owusu-Darkeo stressed that NPRA has decided to institute quarterly meetings with the service providers: namely Corporate Trustees, Pension Fund Managers, and Fund Custodians to discuss issues of mutual interest and policy issues.

He pointed out the NPRA has started implementation of a sanctions regime to enforce compliance with provisions of the National Pensions Act.

The CEO revealed that some suggestions have reached the NPRA to look again at the guidelines on investments for a possible review, which is currently under consideration.

“We are also looking at standardising scheme’s reporting format and introducing Risk Based Supervision.” More significantly, he indicated that extension of coverage for workers’ pensions in the informal sector of the economy is still low despite all the incentives provided under the new pension reforms.

Indeed, the NPRA boss highlighted the importance of sustainable business practices in strengthening the Pensions industry.

“This is clearly a laudable effort in enhancing the knowledge-base of your stakeholders; not just for knowledge of your products, but also on matters that concern the industry as a whole including regulatory issues, investment matters and pension administration.”

Dr. Francis Sapara-Grant, CEO-GLICO Pensions, touched on the need to stay ahead of the competition: “Management of GLICO Pensions deems it necessary to devise and use such platforms to showcase our achievements in order to assure our ever-increasing membership that their pension contributions are in competent hands.

“Despite the numerous challenges and uncertainties that have characterised implementation of the National Pensions Act, GLICO Pensions continues to pursue its business with zeal and professionalism due to the constant support provided by its parent company GLICOLife -- which has resulted in substantial growth in the membership and asset base of GLICO Master Trust Schemes over the past three years.”

Dr. Sapara-Grant said it is worth noting that out of the total number of 11,000 establishments registered by all licenced corporate trustees under Tier-2, the GLICO Masters Trust Occupation and Pension Scheme had captured approximately 20% of this number as at September 2015, even though the company commenced operations much later than other major competitors.

He attributed this achievement to the determination and hard work of staff, coupled with the support and supervision by management under a recognisable brand name -- GLICO.

“These attitudes of determination and perseverance which have been inculcated in our staff across the board underpins our corporate vision of becoming the leading corporate trustee in the country and the brand of choice.”

Dr. Sapara-Grant also touched on the company’s vision to pursue the strategy of incrementally growing the membership portfolio faster and subsequently increasing its accumulated funds ahead of the competition.

Indeed, GLICO Pensions also has strength in the provision of pension management services to the informal sector.

Presently this is being explored and enhanced through collaboration with major informal grouping like the Ghana Union of Traders Association (GUTA).