The National Pensions Regulatory Authority is implementing a Sanctions Regime to enforce compliance and instil discipline in the pensions industry. As a result, the authority has been given the mandate by the Attorney General to prosecute defaulting employers; thirteen of which have been found culpable.
This revelation was made by the Employment and Labour Minister, Ignatius Baffour Awuah on Thursday while addressing the Press on developments in his sector.
He lamented the increasing rate of employers and employees who under-declare their salaries in order to pay less. He also observed that some employers were also habitual defaulters adding that 13 of such had been arraigned to be prosecuted before the court.
Mr Baffour Awuah indicated that according to the statistics there are more employees on Tier 1 more than Tier 2 asserting that there was the possibility employers were paying more of the former than the latter although both are mandatory.
He cautioned and appealed to all employers to the pensions of their employees in order to avoid the sanctions and prosecutions thereof.
“…ironically the number of employees on the Tier 1 that is 1,533,942 are more than those on the Tier 2 though both are mandatory. So the meaning is that it is possible some employers pay Tier 1 of their worker's contribution but do not pay the Tier 2.
It is for this reason and other pension-related offences that NPRA has secured prosecutorial powers from the Attorney General to prosecute offending employers.
Currently, as of June 2019, 13 defaulting employers have been earmarked for prosecution. Dockets are being prepared to take them to court.
I, therefore, want to use this opportunity to appeal to all employers to pay the contributions of their employees timely to avoid prosecution.” Mr. Baffour Awuah noted.
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