Pension scheme not microfinance investment – informal sector workers told

The National Pensions Regulatory Authority has explained to the informal sector workers that pensions scheme is different from micro finance investment, some of which have been closed by regulators for various violations.

Many workers in the informal sector in the Upper West Region have no or little knowledge about the operations of the third-tier Pension Scheme and how they can make their contributions for their future.

It is against this background that the a team from the National Pensions Regulatory Authority has held an outreach programme in Wa to educate informal workers on that pension scheme which some of them consider to be microfinance.

The National Pensions Regulatory Authority (NPRA) under the National Pensions Act, 2008 (Act 766), as amended has been implementing the contributory third-tier Pensions Scheme, which is for workers in the informal sector, since 2010.

The Pension Scheme grants informal sector workers the opportunity to make voluntary contributions which will be given to them when they go on retirement just like government workers.

Manager in charge of Corporate Affairs of the National Pensions Regulatory Authority, Emmanuel Awuku Dagbanu, who took the participants through the pension scheme operations, and assured them of the safety of their money.

Team Leader and Senior Pensions adviser, Russell Galer said 85 per cent of Ghanaians are self employed hence underscored the need for them to belong to the pension scheme to sustain them during their retirement.

Some participants have also raised some concerns about implemention of the scheme. Yakubu Abubakari “I was working with one construction company and they were paying my SNNIT contribution , a year later I went to check at SNNIT and I was told that their system does not capture my data, so I will be very grateful if you can include short message service to tell clients what transactions has been made if not I’m afraid”.