NPRA cautions contributors to be wary of imposters

The National Pensions Regulatory Authority (NPRA) has asked contributors to the recently introduced 3-tier pension scheme, especially those in the informal sector, to be on their guard against charlatans who may come claiming to be certified to collect and manage their funds toward retirement.

The Authority observed that given happenings in the susu and microfinance industry, and some risk-based assessment, it is precautionary for any contributor who doubts the credibility of anyone ‘posing’ as a licenced trustee to verify with the NPRA before going ahead to engage their services.

At the moment the NPRA says 365 pension schemes and service providers have been licenced or registered to operate. This includes 27 Corporate Trustees, 66 Pension Fund Managers, 16 Pension Fund Custodians, and 265 Pension Schemes.

These came up at a two-day sensitisation exercise in Kumasi on the 3-tier pension scheme, which forms part of the pension reforms introduced in 2010.

The Chief Executive Officer of NPRA, Mr. Kofi Anokye Owusu-Darko, said the transfer of funds held in the Temporary Pension Fund account with the Bank of Ghana for the 2nd Tier Schemes which began some time back will continue vigorously into the coming year.

He said efforts are being made to ensure that full transfer of funds is completed by end of the second quarter in 2016. “Barring any unforeseen contingencies, it is expected that by June 2016 all funds will have been transferred to the various schemes -- both public and private funds,” he stated.

He observed that the NPRA is doing everything possible to end the employers-without-schemes challenge, by distributing such schemes randomly to Corporate Trustees through a balloting process.

He explained that this is necessary to ensure that the NPRA focuses on its regulatory role by rather supervising operations of these schemes.

To encourage and ensure market discipline, it was noted that the NPRA has initiated and implemented a sanctions regime as required by law. Statistics on the performance of service providers will be published to keep scheme contributors informed.

Among its numerous responsibilities, the NPRA also has the task of public education and awareness efforts for the pension reforms, and as a result the programme in Kumasi was held.

Mr. Owusu-Darko mentioned that financial education relating to retirement should help promote understanding of the changing retirement environment, and the need for a long-term savings and investment.

He said financial education needs to be taken into account within the pension regulatory and supervisory framework, and considered as a tool to enhance national social and economic growth and well-being.

He however also said financial illiteracy as well as general indifference and inertia toward pension planning have been identified as major barriers to increasing pension scheme membership.

Education and Training Manager-NPRA, Mr. Emmanuel Awuku Dagbanu, in a presentation with some informal sector contributors urged them to come together as groups and individually to contribute toward their retirement.

He said the NPRA will by January 2016 open its office in the region.