Invested pension funds were not lost in financial sector clean-up - NPRA

The National Pensions Regulatory Authority (NPRA) has disclosed that no pension funds were lost or affected during the financial sector clean-up exercise undertaken by the Bank of Ghana (BoG) in 2017.

According to the Director in charge of Planning, Research, Monitoring and Evaluation at the NPRA, the pensions regulator has set in place the modalities on how to invest pension funds to protect the funds of workers.

“If anybody wants to invest pension funds into any asset or a bank, there must a thorough evaluation of that investment. Pension funds cannot be lost because the safety of pension funds is paramount and the regulator took steps to protect all pension funds, hence no money was lost to any of the banks that collapsed,” he said on Citi Business News.

Mr. Ernest Amartey-Vondee further disclosed that the regulator will continue to track and monitor all funds in the sector in a bid to make sure the risk level of pension funds is within a favorable module.

“Pension funds are monies that belong to workers when they retire. So, the manner in which they are used is highly regulated and monitored,” he added.

Earlier, some financial experts had initially cautioned that the situation could have adverse effects in the pensions sector if pension funds were invested in short term instruments.